The European market attracts many sellers from all over the world. However, the question of how much resources you need to invest in starting selling in Europe is still open. This article will try to find out the leading challenges sellers in Amazon Seller Central Europe encounter when launching products in the EU.
Considering the statistics, the increase in e-commerce will become even more intense in the coming years due to Covid-19 and worldwide online trends. Currently, it’s one of the best and perspective opportunities for entrepreneurs. Having studied the market from top to bottom, it’s apparent that it is most reasonable to start selling on Amazon. Compared to other e-commerce giants, it provides superior advantages as its logistics and order fulfillment.
Among other benefits, selling on Amazon provides access to a vast base of potential buyers in all corners of Europe. European warehousing centers, consolidation of 5 online marketplaces in the United Kingdom, Italy, Spain, Germany, France are the most important things to which most sellers pay attention when considering Amazon as their leading selling platform.
Why sell in the European Union
If you wonder, “Is Amazon available in Europe?” we are happy to inform you that it is. After the successful launch of Amazon FBA in the United States a few years ago, most consider the possibility of selling in Europe. The European market has significant potential because of the combined population and opened country borders. Currently, it’s the best time to enter Seller Central Europe while it’s not as crowded as the North-American marketplaces. With low competition and services like the Amazon feedback tool, you can quickly dominate almost any niche.
Let’s discuss one of central Amazon’s advantages when it comes to selling online. It’s called Fulfillment by Amazon. It’s a unique program providing Amazon warehouse space and services to third-party sellers on the marketplace. A seller creates a product listing on Amazon’s site and then sends the items to the warehouse according to the FBA program. This way, the tasks of an Amazon seller include marketing, organizing the manufacturing of goods, and shipping to Amazon. The main thing is that it simplifies scaling on all European Amazon marketplaces since Amazon automatically spread products between its warehouses around Europe and ships orders to the country of sale.
What’s unique about Amazon FBA? It’s the level of trust it gives all seller products. Amazon buyer doesn’t even think about whose product is listed for sale, whether it is the marketplace or some seller. The same comes to customer service.
What’s the Best Practice to Start on Amazon FBA Europe
The Amazon marketplace makes life easier for sellers who list their products on this platform. The European fulfillment network (EFN) allows sellers to store their inventory in FBA’s European warehouses (consider what is allowed to be sold through these fulfillment centers). There is an option to trade simultaneously on two, three, or more European markets.
With the European Fulfilment Network (EFN), sellers can access customers on all five European Amazon marketplaces:
The goods that are stored on Euro-FBAs will be sent to a buyer’s country. You can manage orders on all five trading platforms via one seller’s account.
If you want to sell goods to the Europeans or are considering third-party services in the local language, pay attention to the British and German Amazon branches. It’s recommended to take one market at first and only then, when you are like a duck in the water there, proceed to the next ones. For example, suppose you are doing business in the United States or some other English-speaking country. In that case, you should start Amazon selling in Europe in the following market order: Great Britain, Germany, France, Italy, and Spain.
Product Launch on Amazon in Europe
If you decide to sell your goods in one of the EU countries, you will need to send the batch to one or more European FBA warehouses, depending on the selected program option. You can cooperate with the FBA Amazon warehouses using the Pan European FBA and multi-country inventory. The first option involves the shipping of goods to one Amazon storage location. Then the marketplace independently distributes goods to other European warehouses.
Stages of a product launch on Amazon in European countries:
- VAT registration. The subtleties of this procedure depend on the country of your company registration, places where the goods are stored, sold, and the sales volume.
- Registration on Amazon. Indicate your VAT number, bank account, phone number, credit card, and EIN.
- Create the product listing. After the registration, a seller creates product listings. A separate listing is for each country’s marketplace.
- Ship goods to the warehouse. Pay import tax and obtain the EORI number.
- Return plan. You must provide an address in the EU country where the goods can be returned.
As for the shipping costs, it all depends on the chosen method of transportation and whether cross-border control will be required.
There are certain distribution centers — warehouses from which goods are shipped to other locations of the company. They also repack, conduct customs clearance and certify the goods.
If you consider scaling your online business worldwide and looking for new markets, you definitely should check the Amazon FBA Europe program. It allows sellers to list their products across all European marketplaces and handle the fulfillment routines.
However, a few nuances are depending on your selling model can be challenging when opening a Seller Central Europe account, like registering VAT numbers and submitting VAT returns in a few European countries. The best way for novice sellers is to start selling on a single European marketplace and then expand to others.