Sell on Amazon Europe: Everything You Need to Know
Sell on Amazon Europe, which holds a significant share of the European ecommerce market, with estimates ranging from 20% to 30% depending on the specific source and methodology used.
The European e-commerce market will be valued at nearly 900 billion US dollars by 2028. Amazon Europe provides the perfect platform for potential European customers to tap into this lucrative market.
“Germany…Regarding population and consumer spending, number of sales, etc.…it’s the largest market based on revenue and potential. It’s probably the most established by a long way. And a lot of brands, in terms of entrance into Europe, are thinking of going through the Netherlands because Germany is not easy to import to and then you’re able to defer that through the Netherlands with something called Article 23 into Germany FBA centers.” Tom from Taxually
What is the European Amazon?
European Amazon encompasses five individual marketplaces: Amazon.co.uk (UK), Amazon.de (Germany), Amazon.fr (France), Amazon.it (Italy), and Amazon.es (Spain).
Collectively, these marketplaces offer access to millions of potential customers across Europe, making it a lucrative market for businesses looking to expand their reach.
How to Sell on Amazon Europe: Where to start?
“First, you need to do a full analysis based on product category, niches, particular requirements, or customer trends that you could pick up in certain countries. So, first, Market research; two, you need to identify which countries will be most prominent and which marketplaces, which in most cases would be Amazon. To start with FBA, it would be super easy. After that, you will want to consider getting your goods into Amazon.” stated Tom from Taxually.
After you do the initial steps, here’s how you can begin selling on Amazon in Europe:
1. Register for an Amazon Seller Central Account
The first step in how to start selling on Amazon Europe is Amazon seller central Europe, which manages all aspects of your European Amazon business.
Create and manage product listings by adding high-quality images, detailed descriptions, and optimizing listings with relevant keywords to attract potential customers.
Manage your inventory to track stock levels across Europe Amazon marketplaces, ensuring you have enough products to meet demand and avoid stockouts.
Fulfill orders and choose the approach you’d like to take, whether through fulfillment by Amazon (FBA) or handling them yourself.
Manage customer service, respond to customer inquiries, promptly address issues, and maintain a positive customer experience.
2. Choose a Selling Plan
Amazon offers two main selling plans to cater to different business needs:
Individual Selling Plans: A good option for sellers with low sales volume, as it requires no monthly subscription fee but charges per-item selling fees.
Professional Selling Plan: Better suited for businesses with higher sales volume and offers additional features like bulk listing tools and reports for a monthly subscription fee.
3. Product Restrictions and Regulations
Familiarizing yourself with product restrictions and regulations specific to each European country you plan to sell in is crucial.
Research prohibited products, specific categories of products, such as hazardous materials or weapons, are prohibited from sale on Amazon. Check for additional requirements; some products may require other approvals or certifications before you can list them for sale in certain countries.
Stay updated since regulations can change frequently, so it’s essential to stay updated on the latest requirements to ensure compliance.
4. Enroll in the European Selling on Amazon Program
The seller central Europe Amazon Program simplifies selling across all five European marketplaces (Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, and Amazon.es) with a single account. You’ll benefit from:
- Unified Listings: Manage your product listings across all marketplaces from one central location.
- Simplified Pricing and Fulfillment: Set consistent pricing and fulfillment options for all European marketplaces.
- Streamlined Reporting: Gain insights into your sales performance across all European markets in a single report.
FBA Options in Europe
Amazon FBA in Europe has fulfillment by Amazon (FBA) which allows you to store your products in Amazon fulfillment centers across Europe.
When a customer orders your product, Amazon picks, packs, and ships it directly to the customer. This can significantly improve your delivery times and customer satisfaction.
FBA Europe: Stores your inventory in fulfillment centers across various European countries, ensuring faster and more efficient delivery to customers across the region.
FBA Small and Light: Designed for smaller and lighter products, offering a cost-effective fulfillment option for eligible items.
Selling on Amazon Europe Step-by-Step
In order to best understand how to sell in Europe on Amazon, follow these step-by-step instructions:
Research and Choose Profitable Products
Use Amazon Seller Central tools, market research databases, and industry reports to identify products with high demand and low competition in the European Market.
Factor in storage and shipping costs, especially for larger or heavier items, as they may impact your profit margins.
Ensure you can source your products reliably and cost-effectively from supplies who meet European quality and safety standards.
Source Your Products
Build relationships with reputable suppliers who can guarantee consistent quality, competitive pricing, and timely deliveries.
Verify that your products meet all necessary safety and labeling requirements for your target markets within Europe.
Negotiate competitive pricing and delivery terms with your suppliers to ensure profitability when selling on Amazon EU sites.
Create Optimized Product Listings
Showcase your products from multiple angles using clear, professional photos.
Provide detailed and engaging descriptions highlighting product features, benefits, and specifications to address potential customer questions.
Conduct keyword research to identify relevant search terms that customers might use to find your products and incorporate them strategically throughout your listings.
Competitive Pricing
Conduct pricing research to understand what your competitors are charging for similar products. Consider production costs, shipping fees (including potential import duties and taxes), Amazon fees, and desired profit margin when setting your prices.
Consider offering discounts, bundles, or promotions to attract costumes and remain competitive.
Manage Your Inventory
Track your inventory levels across all European marketplaces to avoid stockouts and ensure timely order fulfillment.
Establish minimum inventory levels (reorder points) to trigger automotive reorders and prevent stockouts.
Explore the benefits of Amazon’s fulfillment by Amazon (FBA) service, which can streamline your inventory management and order fulfillment process.
Selling on Amazon Europe from the USA
Though Amazon offers global resources and support for sellers, expanding your reach from the USA to the European market requires additional considerations.
International Logistics
Partner with a reliable international logistics company. Consider partnering with a logistics company experienced in European ecommerce to ensure efficient and cost-effective cross-border shipping.
Use Amazon’s FBA network in various European countries (Germany’s FBA center being a prominent example) to benefit from their established fulfillment infrastructure and ensure faster delivery times for customers across the region.
Familiarize yourself with Amazon’s Pan EU fulfillment network, which allows you to store inventory in a single European location and fulfill orders across all five marketplaces.
Compliance with Taxes and Duties
Depending on your sales volume and the specific European countries you sell in, you may be required to register for VAT. Understanding and complying with VAT regulations is crucial to avoid penalties and ensure smooth business operations.
Customers may be responsible for paying import duties and customs fees upon receiving their orders.
Consider incorporating these costs into your pricing strategy or offering solutions like Delivered Duty Paid (DDP) to improve customer experience.
Consult with a tax advisor or legal professional specializing in international ecommerce to ensure you comply with all relevant tax and duty regulations.
Paying Taxes and Duties
It is of importance to understand and adhere to tax and duty regulations when selling in Amazon of Europe.
1. VAT Registration
Each European country has its VAT registration threshold. If your annual sales exceed this threshold within a specific country, you must register for VAT there.
Tom from Taxually states, “On a high level, you first need to register for VAT in the countries in which you are looking to store your products. Unlike the US, when you send your goods to Amazon FBA, it redistributes your products; similar ethos in Europe, except that each state is a different country and has different tax requirements, which means you need to register and file in accordance with the ones you’re storing and selling.”
Once registered, you’ll need to collect and report VAT on your sales in that country, ensuring compliance with local regulations.
2. Import Duties and Customs Fees
Typically, customers are responsible for paying any import duties and customs fees levied upon receiving their orders. Communicate in your listings or seller policies that import duties and customs fees are not included in the product price and may be applicable.
Offering Delivered Duty Paid (DDP) can improve customer experience by including these fees in your product price, offering a more predictable and transparent pricing model.
Benefits of Selling on Amazon Europe
Access millions of potential customers across Europe, expanding your market reach and potential sales volume. Benefit from Amazon’s established brand recognition and trust, potentially attracting new customers with minimal brand awareness efforts.
Utilize Amazon’s FBA network for efficient order fulfillment, potentially improving delivery times and customer satisfaction.
Enroll in the Central European Program to benefit from simplified product listings, pricing, and fulfillment across all five European marketplace using a single account.
Disadvantages of Selling on Amazon Europe
The European market is highly competitive, requiring a well-defined product offering, competitive pricing strategies, and practical marketing efforts.
Navigating and complying with different tax, regulatory, and product safety requirements across various European countries can be challenging.
Factor in additional costs like FBA fees, potential import duties, currency conversions, and potential international shipping costs.
To learn all the details about selling on Amazon Europe, make sure to watch our video!