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How to Sell Internationally on Amazon in 2020

Sell It’s also likely that you will have considered scaling up your Amazon business at some time or another but may have got cold feet when it came to expanding beyond the UK. This is perfectly normal.

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After all, there are so many things to think about; taxes, language barriers, payment options, currency issues, fulfilment; it’s all a bit intimidating and confusing to get your head around, making it far easier to stay within your comfort zone.

But, by sticking with what you already know, you run the risk of missing out on a huge opportunity to maximise your presence using the Amazon platform and the massive reach that comes with that shouldn’t be ignored.

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The Benefits of Selling Internationally

It goes without saying that expanding the reach of your Amazon business will be beneficial.

1. You’ll Reach More Customers

This is a pretty obvious benefit! Currently, with just one unified Amazon account, you can reach millions of customers across the whole of Europe via Amazon’s five EU marketplaces, UK, France, Germany, Italy and Spain. There is just one caveat, and that is your Amazon listings must be in the language of the country you are selling to, so you’ll need to get them professionally translated unless you are fluent!

2. You Can Enter a New Market Quickly

Introducing your brand to a new audience can be tricky, so imagine introducing your brand to an entirely new country! By selling on Amazon internationally, you can enter a new market super quick, and effortlessly build trust based on Amazon’s brand rather than your own.

3. You’ll Have No Upfront Costs to Pay for Expansion

By leveraging the Amazon brand, you won’t need to factor in any costs to expand your business into a brand new sales environment. Amazon will only charge you a single monthly Pro Merchant subscription fee for your Amazon Europe Marketplaces account, so in fact, there are no extra costs involved in expanding to the European market.

It is, however, advisable to consult with a professional import or tax expert to be sure you receive individual advice on your circumstances before you start to sell internationally.

Specifically, you may need to register for VAT, and you will need an EORI number to allow you to declare your goods when they are entering or exiting the EU. If you don’t have one, customs will not be able to clear your goods. You can apply for an EORI her.

4. You Can Set Up and Scale-up Easily

You can use your current Amazon account, your regular listings and Fulfilment By Amazon to make the order and fulfilment process and customer service even more straightforward as you expand.

Your products will be managed across all these countries using a single unified seller account, so everything is in one easily accessible place that you will already be familiar with.

Selling your products in Europe is the obvious first step to expanding your reach, but there are some essential steps you will need to take before you can go live.

Next Steps to Selling Internationally on Amazon

  1. Check your product listings are optimised and up to date.
  2. Translate your listings where required.
  3. Decide whether you will use FBA or fulfil orders yourself.
  4. Be aware of any legal, tax and compliance obligations.
  5. Apply for an EORI number.

These steps are worth taking because by maximising your presence within Europe using the Amazon platform, you will begin to benefit from more customers, an immediate international presence and ultimately more profit.

But why stop with Europe? Go global!

Introducing your brand to Europe is a fantastic move to expand your Amazon business, but you could take it even further!

What is Amazon Global Selling?

By selling only in the UK, you are limiting your sales. By selling within Europe you are expanding your reach, but with the help of Amazon Global you can easily expand your Amazon business worldwide and with that comes considerable opportunities to grow your business further, reach millions of new customers and build a large customer base.

Amazon Global Selling (AGS) can open up further countries in which you can list your products on Amazon’s global marketplaces. Currently, there are eight global marketplaces in addition to the five European marketplaces we have already discussed, so by going global, you’ll have a presence on 13 marketplaces in total. These include the United States, India, Japan, China, Mexico, Canada, Brazil and Australia.

Imagine being able to scale your business throughout the world while running everything comfortably from the UK. Check out the Amazon Global Selling success story below from Miami Buys.

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The Benefits of Amazon Global Selling

In addition to the benefits you’ll see by expanding internationally to Europe, there are further benefits to going global!

1. You’ll Reach an Even Larger Customer Base

The biggest benefit! Just like your European expansion, by going global, you’ll have immediate access to an even more extensive range of customers. Take into consideration all the other festivals, holidays and promotions celebrated throughout the world such as Black FridayCyber Monday, International Days, Thanksgiving and Christmas and you are bound to see a boost in sales as these festivities are celebrated throughout the world.

2. Choosing FBA Makes Shipping Simple

If you decide to go global, FBA will be a necessity for ease of international shipping. The benefit will be immediate as this will take all product storage, picking, packing and shipping of orders out of your hands. You won’t need to deal with customer service or refunds, and all the logistics of your Amazon business can run smoothly without you needing to be hands-on.

3. You Won’t Encounter Currency or Payment Issues

Whether you sell in Pounds, Euros, Dollars or Yen because your customer transactions will go through Amazon, currency conversions will be processed automatically, and deposits made directly to your bank account. This also means that you are guaranteed to receive your payments securely and on time, ensuring smooth cash flow.

4. How Easy is it to Sell Globally on Amazon?

It sounds simple when it’s all laid out like this doesn’t it, but just how easy is it really to sell globally on Amazon? Well, as you might expect, there are some aspects to the global set up, which will require more effort than others.

To sell globally, you’ll require an individual seller account for every country with the exception of unified seller accounts for Europe (UK, France, Germany, Spain, and Italy) and North America (Canada, Mexico and the USA).

So, that means opening Amazon accounts on each of those countries’ individual sites, India, Japan, China, Brazil and Australia, to use alongside your Europe and North American accounts.

This also means you will have monthly fees due to Amazon on each of these accounts. This is why it’s crucial that before you open your new accounts and start selling, you understand local demand and ensure that your products will actually sell!

But that’s not all, there may be product restrictions and compliance issues in certain countries, with Japan seemingly the strictest when it comes to this.

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Coronavirus: The Long-Term Impact for Sellers

Coronavirus The world has changed in a matter of moments, and with it, so has the world of online selling. And I don’t think things will ever be the same again.

If you’re an online seller, who like most of us, is overwhelmed at the state of the world right now and are wondering what it means for your online business and your livelihood, then keep reading.

Coronavirus

I’m Kev Blackburn, the founder of Life Success Engineer, and today I’m going to be breaking down the current impact of coronavirus on Amazon sellers and what it means for our businesses in the long run.

Video: Coronavirus Impact on Your Amazon Business

The Current Crisis and Its Impact

In 2019, ecommerce sales accounted for 14.1% of all retail sales worldwide and are predicted to reach 17.5% of all retail sales by 2021.

But that was before coronavirus came along and changed everything.

The invisible virus has completely taken control of the world, and for the most part, pretty much shut it down. Everything apart from essential stores (grocery stores, pharmacies, supermarkets etc.) have been forced to close their doors, simultaneously cutting off a large percentage of the remaining 85.9% of retail sales that are not made online.

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This has had a huge effect on the supply chain and as we can all see, online sales have gone through the roof!

Amazon itself has seen an enormous spike in sales and if you’re an Amazon seller, I’m pretty sure you’re experiencing this too right now. The company even had to place restrictions on certain categories as the demand for more essential items (food and groceries, medical supplies, health and personal care products, pet supplies and more) has absolutely exploded. Oh, how the tables have turned.

Although statistics aren’t available yet, I’m predicting that the percentage of online sales in these times at the moment, must have sky-rocketed to way beyond 14.1%.

With so many physical stores being closed worldwide, this number could even have reached 70%-80% or more.

The demand is absolutely crazy and I can honestly say I haven’t experienced anything like this before. Our prep centres are busier than ever, my private label supplement products are selling hotter than hotcakes, and a number of our success partners have made more in sales during this period than Q4 just gone!

What Does This Mean for Amazon Sellers Moving Forward?

Well, I’ve said it before and I’ll say it again: the world has changed and nothing is going to be the same again.

The whole landscape of business, in general, has completely shifted. With more people working from home than ever before, businesses are having to become more swift and savvy in their operations.

From using online management systems to virtual assistants; from online communication systems to online training methods, it appears that those that hadn’t yet made the leap into the online world, are now being forced to do so.

And do you think that once this has all passed, that they’ll be going back to their old ways? I certainly don’t think so.

For us as Amazon sellers, this is a crucial time. With being busier than ever before, flaws in our operations, systems and methods are going to be coming to the surface right now, and they need to be addressed if we want to be able to stick this journey out for the long run.

As sellers, we need to become swift and speedy. We need to innovate and streamline our businesses. Now is such an important time for taking massive action because it will most definitely lead to massive growth; it’s either this or risk being left behind.

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Don’t Get Left Behind!

Charles Darwin once said, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change” and I think in order to survive the world of Amazon selling, this is how we need to look at things.

Although there are things happening in the world outside of our control, we must turn our attention and focus on those things that we can control.

We must adapt to the changes being presented to us currently and take massive action in the areas that will help us to survive, grow and thrive.

So if Amazon is something you want to continue to pursue long-term and it’s somewhere that you want to grow and expand your businesses, then it’s time to become a problem solver.

Think about all aspects of your business, think strategically and identify the areas where you can take control.

Here are some examples:

  • If managing and prepping stock is an issue, get your business into a prep centre
  • If you’re having issues with quantity of stock, look at additional supply
  • If your categories have been restricted, become more flexible and look into getting into those that aren’t
  • Make more phone calls! Wholesalers are still looking to open new accounts and there is massive opportunity out there

And then, I’d highly recommend spending some time thinking over your long-term contingency plan; how can you create multiple streams of income for yourself, without relying solely on Amazon?

The Future is Bright

So to conclude, the long-term impact of coronavirus on Amazon business could be pretty great and I mean that in every positive sense of the word!

We’re going through a quantum leap shift and the rapid growth that is happening for us in this current climate, on personal and business levels, is going to change the world and change the way we live our lives. When this all passes, everything is going to be on a whole other level and I for one, am very excited.

Although in some ways, times are dark for many right now, the future certainly looks bright for those with online businesses.

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What is Amazon TACoS Mean?

Amazon TACoS If you’re a third-party Amazon seller advertising on the marketplace then it’s essential that you measure how it performs. Sellers want to gain buyers’ attention affordably — so, if you’re spending a lot of money on advertising and not seeing much back in terms of extra sales, then you might want to stop or optimize it.

TACoS

In a study by Econsultancy, 77% of marketers agreed that the success of advertising should drive the level of budget allocated to it.

There are many ways to measure the success of Amazon advertising. This post will examine Amazon TACoS which has started to gain traction recently as a key performance metric.

Before we dive in any further, let’s start with the basic question.

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What Does Amazon TACoS Mean?

Amazon TACoS has nothing to do with Mexican food. Instead, it stands for the total advertising cost of sales. It measures your advertising spend relative to the total revenue generated.

The TACoS metric is growing in popularity across the eCommerce sector and gives you a snapshot of how your Amazon PPC ads are performing and directly affecting sales.

How to Calculate Your TACoS

To work out your TACoS, you divide your total advertising spend by your total sales revenue and then multiply it by 100.

TACoS = (Advertising Spend/Total Revenue) x 100

With this information, you can better decide how much your advertising is driving sales.

How to Identify If You Have a Good Amazon TACoS

Amazon sellers worry about how their Amazon ads are performing. If terms of TACoS, the lower the better,

  • A low TACoS rate means your advertising is generating steady sales and your brand is growing.
  • A high TACoS rate means your advertising is generally underperforming and needs to be optimized (new bids, new products or new keywords).

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     Example scenarios:

  1.   TACoS is flat or falling – Organic sales are increasing
  2.   TACoS rising – Organic sales are decreasing. Ad costs are increasing.
  3.   ACoS falling and TACoS rising – Organic sales are decreasing.
  4.   ACoS and TACoS both rising – Acceptable for new product promotion.

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Final Thoughts

Amazon TACoS is a key performance metric which assesses the impact of advertising relative to Amazon sales. Calculating TACoS is crucial for any Amazon seller advertising on the platform.

Monitoring TACoS will give you a more comprehensive view of your overall business performance than your ACoS. It will also help you decide the long-term strategies for your Amazon business.