The e-commerce giant continues its global expansion in Europe.
On Tuesday, March 2nd, Amazon expanded its reach by launching its Polish marketplace, Amazon.pl.
Upon launching, Amazon.pl boasts more than 100 million products across more than 30 categories, making it one of the company’s most expansive launches yet. As global e-commerce continues growth accelerated by the pandemic, the launch of yet another marketplace signals the world’s largest online retailer is still growing.
“We are thrilled to launch Amazon.pl and to be able to offer Polish customers a selection of more than 100 million products, including tens of thousands of products from local Polish businesses.”
Alex Ootes, VP of EU Expansion at Amazon, to Reuters
While not without competition from e-commerce companies such as Poland-based Allegro, the arrival of Amazon into any marketplace or industry undoubtedly changes its landscape.
For Amazon sellers, it’s worthwhile to monitor Amazon’s steady expansion into new countries, as they often provide an opportunity to get your brand in front of a global audience. In most instances, Amazon’s fulfillment network makes it convenient for existing sellers to be listed in international marketplaces.
Additionally, making your products available sooner on any Amazon marketplace could pay off handsomely if the new market adopts it as the e-commerce marketplace of choice. If you’re a seller looking to grow internationally with Amazon, you can get started here.
The addition of an Amazon marketplace in Poland brings Amazon’s total marketplaces to 19, spanning North and South America, Europe, Asia, and Australia.
The 19 Amazon Global Marketplaces as of March 2021
The Amazon Poland Launch comes less than six months after the arrival of Amazon Sweden. While no announcements regarding further expansion have been made, we’ll be monitoring Amazon’s ongoing expansion efforts.
“Going global.” We’ve all heard it right? Maybe one of the biggest buzz phrases in today’s technological world, especially for those in e-commerce.
Although Amazon US is without a doubt the largest, most profitable Amazon market, there is still a wealth of opportunity to be had on Amazon’s international sites, especially in Europe. Below are the top 5 reasons why you should be considering internationalization to Amazon Europe:
1. Expand Your Sales Potential
For starters, expanding into other Amazon marketplaces, namely the UK, Germany, France, Italy and Spain, puts you in front of more consumers. Simple as that. In fact, it puts you in front of potentially 230 million more consumers.
While there are additional costs associated with selling internationally, the doubling in customer exposure and potential increase in sales is undoubtedly worth the price.
Since Brexit, Amazon UK sales have actually increased, and retail sales overall in European markets are on the rise, whereas US retail sales growth has been declining in recent years (more on that later). And, the average UK online shopper actually spends more annually than the average US online shopper, while German online shoppers are only marginally behind the US.
2. Smaller Markets = Less Competition
Another positive of Amazon Europe is smaller markets. You might be asking, doesn’t that mean fewer consumers? While all 5 European markets combined have about the same consumer base as the US alone, the undeniable benefit of each country’s smaller market is fewer sellers.
Of the approximate 2 million active Amazon sellers worldwide, only around 200,000 are in Europe, meaning you will have significantly less competition for the products you sell in each market.
Sellers should consider if their product is one that will sell well in each market. Due to cultural differences and expectations, an item that might be a high seller in the US may not translate as well in Germany or Spain. Or, your product may be called something completely different in another market. For example, in the US, we say “oven mitts,” but in the UK, they say “oven gloves.” So do your market research before you list, but if it’s right for the market, the potential to thrive and make it to page 1 is much easier than in the US.
3. Grow as the Markets Grow
As mentioned earlier, the European online sales market has seen significant growth in recent years. Western Europe has seen a steady average of 12% growth in online retail sales from 2012 to 2017, and Southern Europe has an average of 18% growth each year. The US, on the other hand, has seen a decline in growth in the last 5 years, from 14.8% in 2013 to 12.8% in early 2017.
Sellers have the potential to enter in now as the market across Europe is quickly expanding, allowing their products and their brand to grow as the markets grow. For example, review quantities are extremely low compared to the US.
Back when reviews were this low on Amazon.com, many sellers were able to get into the market early, generate tons of reviews over time, claim market share, and heighten the barrier to entry for new products. As the Europe market continues to grow, market competition will increase, so it’s a perfect opportunity to start building your reviews now. Basically, get in early, before everyone else does.
4. Many Sellers are Afraid of Internationalization
While potentially very profitable, internationalization is a daunting prospect for many US sellers. There are language and cultural barriers, market variations, differences in consumer expectations, extra shipping costs and local taxes, exchange rates, customer service barriers and local regulations.
These factors can seem extremely intimidating, but Amazon is working to mitigate challenges, making it easier for sellers to cross the ocean into Europe, even going as far as allowing certain sellers to apply for an Amazon account manager who can help with European expansions.
Since many are still avoiding the jump across the pond, sellers willing to take the chance have the opportunity to establish their brand and product now, solidifying a buyer base before other sellers land on the market.
5. Amazon is Seeking to Grow International Markets
In efforts to encourage sellers to go global, Amazon has significantly boosted their EU marketplace services in the last several years. While you do not have to be an FBA seller to sell internationally, Amazon makes the process incredibly streamlined if you are.
Anyone can sell across all 5 EU marketplaces under one single seller account, but non-FBA sellers must handle their own shipping and customer service. If you sell internationally as an FBA seller, you can send your products to an Amazon EU fulfilment center for storage and shipping, your products are Prime eligible, and you have access to each of Amazon’s language-specific 24/7 customer service platforms. Sounds like a pretty good gig if you ask me…
Need Help With International Launches?
Whether you’re looking to grow into just the UK market, or you’re interested in all 5 Amazon Europe marketplaces, the rewards have great potential if you have a product that will resonate culturally.
Lucky for you, Viral Launch is already offering product launches in Canada, the UK, Germany, France, Italy and Spain. And, they’re discounted (for now, anyways)! So when you’re ready to cross the pond, Viral Launch is ready to get you ranking and launch you to Amazon Europe success!
Bonus:Market Intelligence, Viral Launch’s Amazon product research tool is now available for international markets! You can validate your Amazon Europe product ideas, see accurate sales estimates, and understand market trends in the US, UK, Germany, Canada, Japan, France, Italy, Spain, India, Mexico, and China. Start researching today, both for the US market and internationally, with the most sophisticatedAmazon product research tool available!