With over 200 million paid Prime members globally and hundreds of millions worldwide active customer accounts, Amazon has emerged as a dominant force, revolutionizing how we buy and sell goods. Understanding the value of the aforementioned numbers, Amazon has created a program called Amazon global selling to help businesses with the goal of growing their global business.
For the purpose of understanding Amazon global selling in-depth, in this article, we will go through the following sections:
- What is Amazon global selling
- How to get started with Amazon global selling
- Benefits of Amazon global selling
- Requirements for international sellers on Amazon
Let’s get the ball rolling!
What is Amazon Global Selling?
How it works
Amazon global selling is a program provided by Amazon that enables people and businesses to sell their items internationally on the Amazon global marketplace. It allows sellers to reach a global audience, expand their business beyond their local market. The program also includes resources and tools to assist sellers with shipping, customs, import duties, and localized customer service.
Amazon global selling: Fees & taxes
When engaging in selling globally on Amazon, it is crucial to consider the various charges and taxes associated with the process. Amazon imposes several fees on sellers, which include referral fees, variable closing fees, and subscription fees for specific sales plans.
Referral fees are determined as a percentage of the total item sale price and vary depending on the type of product. Additionally, sellers are subject to Amazon’s variable closing fee, which is applied when making an offer to purchase and sell an item on the platform. This fee varies based on the item’s condition and ranges from 0.99% to 2.50%.
Moreover, to sell globally on Amazon, sellers may also incur monthly subscription fees based on their chosen sales plan, granting access to extra features and benefits. You should note that these fees can significantly impact a seller’s profit margin and should be carefully considered when determining pricing.
Furthermore, it is advisable to utilize Amazon’s Currency Converter for Sellers due to the use of different currencies in various countries. This feature allows sellers to receive payments from international buyers in their local currency, while the deposit into their account is made in the seller’s chosen currency. Amazon charges a 4% fee for this service.
To learn more about other fees you pay when becoming an Amazon global seller, you can read our Amazon seller fees article.
Regarding taxes, they also play a role in global business transactions and vary from country to country. Therefore, conducting thorough research on the applicable taxes in the countries where you sell is essential for global selling Amazon. It may be wise to enlist the services of an expert to handle this responsibility.
Want to sell on Amazon internationally? Learn about common scams and how to avoid them before you start.
How to Get Started with Amazon Global Selling
Step 1: Register as a seller on Amazon
As mentioned above, to enter into the global Amazon trade in program, you are required to create an Amazon Seller Central account, regardless of the specific marketplace you wish to operate in. If you already have a seller account, you must create a new one for each marketplace you want to sell.
However, if you already have an account in North America or Europe, you can take advantage of unified account features. This means that with a single account, you can access other countries within your region without any additional setup fees. For example, if you have a unified seller account in the United Kingdom, you can easily access the German, French, and Italian marketplaces without incurring extra costs.
It’s important to note that simply having a unified account does not automatically list your products in these marketplaces. However, you gain immediate access to set up listings in those marketplaces.
Once you have decided on the registration process to sell on Amazon globally, here are some details you will need to provide:
- Business name
- Credit card number
- Phone number and email address
- Bank account information
- Tax information
Step 2: Choose the marketplace(s) & countries to sell in
Once you have completed the registration process as a seller, the next step is to choose the Amazon marketplaces and countries you want to target. You’d better conduct thorough market research to identify regions where there is high demand for your products. Moreover, you can consider factors such as competition levels, shipping logistics, and cultural considerations.
In Amazon global selling program, this best market selling platform offers a variety of marketplaces, including:
- United States: Amazon.com
- Canada: Amazon.ca
- Mexico: Amazon.com.mx
- Brazil: Amazon.com.br
- Germany: Amazon.de
- France: Amazon.fr
- Italy: Amazon.it
- Spain: Amazon.es
- Netherlands: Amazon.nl
- United Kingdom: Amazon.co.uk
- Turkey: Amazon.com.tr
- Saudi Arabia: Amazon.sa
- United Arab Emirates: Amazon.ae
- Indonesia: Amazon.in
- Australia: Amazon.com.au
- Singapore: Amazon.sg
- Japan: Amazon.co.jp
Some of these marketplaces are well-established, while others have recently been launched. Each marketplace has its own benefits and challenges. Notably, opting for a well-established marketplace grants you access to a large customer base, but also entails fierce competition.
On the other hand, a newly launched marketplace may have fewer site visitors but also less competition. This allows you to establish your brand on Amazon and gain momentum while keeping advertising costs low.
In general, for Amazon global sales, it is suggested to evaluate the requirements of each marketplace, such as language, local regulations, and fulfillment options.
Step 3: List products and optimize listings for international markets
Once you have chosen the marketplaces and countries to sell in, it’s time to list your products and optimize your listings for Amazon international selling. Amazon provides a powerful tool called Build International Listings (BIL) to streamline this process and expand your reach efficiently.
Researching the local demand and competition for your products in each marketplace is a good idea. You need to consider factors like pricing, product variations, and customer preferences. The BIL tool simplifies the process of listing your products across multiple marketplaces by allowing you to create and manage your international listings from a central dashboard.
Additionally, with the BIL tool, you can easily translate your product listings into the local language of each marketplace of Amazon global selling program. This helps enhance customer experience and increases the likelihood of attracting potential buyers. The tool offers automated translation services or allows you to provide your own translated content.
Optimizing your listings for search engines within each marketplace is also crucial. The BIL tool helps you identify relevant keywords and optimize your product titles, bullet points, and descriptions. Notably, you can read the sell on Amazon guide for an in-depth understanding of how to take advantage of these elements.
Last but not least, we suggest you regularly monitor and analyze your sales performance in each marketplace. These data help you recognize what are the best products to sell on Amazon as well as how to sell globally on Amazon in an effective way. Moreover, taking advantage of Amazon’s seller support resources, forums, and training materials, including guidance on using the BIL tool, helps to stay updated on best practices for Amazon global selling.
Benefits of Amazon Global Selling
Expanded customer base
Amazon global selling enables businesses of all sizes to reach customers worldwide. This is especially beneficial for small to medium-sized enterprises (SMEs), which may struggle to expand beyond their local markets due to limited resources. By leveraging Amazon’s tools and marketplaces, businesses can access prime global source Amazon, including millions of Amazon Prime members who shop on Amazon marketplaces around the world. Having a presence on multiple Amazon marketplaces allows businesses to reach new customers that they may not have been able to find locally.
Increased sales opportunities
By Amazon selling internationally, businesses can tap into new sales opportunities. Amazon provides tools and resources to help sellers tailor their products and marketing strategies to meet the needs of customers in different countries and regions. This may include localizing product listings, pricing, and marketing campaigns. Amazon also offers various promotional programs and tools that help businesses increase their visibility and sales.
Access to global logistics and fulfillment network
Amazon’s logistics and fulfillment network is one of the largest in the world. With Amazon global selling, businesses can leverage this infrastructure to expand globally and deliver their products to customers reliably and efficiently. Amazon’s FBA (Fulfillment by Amazon) program allows businesses to store their products in Amazon fulfillment centers around the world. Amazon then picks, packs, and ships the products to customers, handles returns, and manages customer service in the local language. This helps businesses who are selling on Amazon internationally save time and money on logistics and fulfillment, allowing them to focus on growing their business. For more information about FBA, you can read about Amazon FBA vs FBM.
Looking to expand globally on Amazon? Dropshipping is a good option. Check out our how to start Amazon guide.
Requirements for International Sellers on Amazon
Every Amazon marketplace has its own set of unique requirements for sellers who join Amazon global selling program. Here are some additional factors to consider:
- Seller account: To sell on any Amazon marketplace, you must create a seller account. There are two types of accounts available: individual and professional.
- Legal entity and bank account: International sellers on Amazon must have a valid legal entity in the country where they are registered. This means you need to establish a legal presence in the target country to comply with the marketplace’s regulations. Additionally, you will need a local bank account in that country to receive payments.
- Product and category restrictions: Just because you can sell certain products on one Amazon marketplace doesn’t guarantee you can sell the same products on another. Amazon often imposes specific requirements and restrictions for certain categories or products.
- Taxes and import duties: Taxation rules vary from country to country, and it’s crucial to understand the tax obligations related to your Amazon revenue. For instance, in Europe, Value Added Tax (VAT) is applicable, while in Australia, it’s the Goods and Services Tax (GST).
- Local language translation: When global selling on Amazon, it’s a good idea to ensure that your product information on detail pages is accurately translated into the local language. Additionally, providing ongoing customer support in the local language is vital for a smooth customer experience. While the Amazon global selling program offers assistance with product listing translations, it may not always be perfect, so reviewing and optimizing translations as needed is advisable.
- Maintain performance levels: Amazon has strict performance standards that sellers must meet. Failing to comply with these standards can result in account suspension.
Generally, Amazon international selling can be a lucrative opportunity, but it requires careful consideration of these factors and a thorough understanding of each marketplace’s specific requirements and regulations. It is important to highlight that Amazon and Amazon marketplace are distinct entities, and you can differentiate between the two by referring to the article titled Amazon vs Amazon marketplace comparison.
Read more:
Amazon Global Selling – FAQs
- 1. What countries does Amazon ship to?
Amazon ships products internationally to over 100 countries through its Amazon global shipping program. However, the available product lines, shipping rates, and fees may vary depending on the delivery address for your order. Please note that some products may not be eligible for international shipping due to various reasons such as legal restrictions, product size, and weight. It’s best to check the specific product page for information on whether it can be shipped to your country.
- 2. How many countries does Amazon operate in?
Amazon operates in over 50 countries around the world, with around 20 countries having dedicated websites (not just amazon.com) for shoppers and sellers. Additionally, Amazon ships products to customers in more than one hundred different countries through its Amazon global shipping program. However, some services such as Amazon Prime may not be available in all countries.
- 3. Do I need to join Brand Registry for each country I intend to sell in?
It seems that to enroll in the Amazon Brand Registry program and register your brand, you may need to have an active registered trademark in each country where you intend to enroll or sell your products on Amazon. Each Amazon marketplace may have its own country-specific eligibility requirements, so it’s best to check the specific requirements for each country where you plan to sell and enroll in Brand Registry accordingly.
- 4. What criteria should I use to determine the initial countries to expand my business?
Some criteria that could be considered when determining the initial countries to expand your business might include:
- Market attractiveness: Assessing the size and growth potential of the market, as well as the competition, regulatory environment, and cultural factors.
- Customer potential: Identifying countries or regions with a high potential customer base for your product or service.
- Operating costs: Evaluating the costs of doing business in each country, including taxes, labor and production costs, and logistics.
- Legal and regulatory considerations: Understanding the laws and regulations related to starting and running a business in each country, such as tax laws, employment laws, and intellectual property protection.
- Access to talent and resources: Identifying countries or regions with a skilled workforce, supportive infrastructure, and access to necessary resources for your business.
It’s important to note that the criteria may vary depending on your specific business and industry, so it’s important to conduct thorough research and seek advice from experts before making any decisions.
Sell Internationally with Amazon Global Selling
In conclusion, Amazon global selling has revolutionized the world of eCommerce by providing businesses with a platform to reach a global customer base. Through its extensive infrastructure, logistics network, and localized support, Amazon, the top marketplace for selling products, has made international selling more accessible and profitable for sellers of all sizes. Moreover, Amazon’s commitment to customer satisfaction and trust has built a solid reputation that encourages buyers to trust and purchase from international sellers.
Besides, if you’re a beginner in online selling and desire to expand your knowledge about eCommerce strategies, subscribe to our Retailer Blog or contact us for a comprehensive guide. LitCommerce offers many insights and techniques shared by industry leaders, which you can acquire and implement in your business endeavors.
