Expanding your Amazon business to international marketplaces can open up new revenue streams, increase brand visibility, and reach millions of new customers around the world. Amazon’s Fulfillment by Amazon (FBA) service is designed to make it easier for third-party sellers to navigate the complexities of global logistics, including warehousing, shipping, and customer service. But for many sellers, the process of expanding to international markets can seem overwhelming.
In this comprehensive guide, we’ll walk you through everything you need to know about using Amazon FBA for international marketplaces. We’ll cover setting up your global Amazon accounts, using FBA to manage your international inventory, navigating customs and taxes, and tips for successfully launching your products in new markets. By the end of this article, you’ll have the knowledge and tools needed to start selling globally and expand your business like a pro.
Why Expand to International Marketplaces Using Amazon FBA?
Expanding to international marketplaces using Amazon FBA can offer numerous benefits for your business:
- Increased Sales Potential: Reaching new markets means accessing millions of potential customers who may not have seen your products before.
- Diversification: Selling in multiple regions reduces reliance on a single marketplace, protecting your business from seasonal fluctuations and economic changes in one region.
- Access to Prime Customers Globally: Using FBA means your products are eligible for Amazon Prime in the local region, giving you access to the loyal Prime customer base who prioritize fast, reliable shipping.
- Simplified Logistics: Amazon FBA handles warehousing, packing, and shipping for you, so you don’t need to worry about setting up international logistics operations.
Step-by-Step Guide to Using Amazon FBA for International Marketplaces
Ready to take your business global? Follow these steps to get started with Amazon FBA for international marketplaces.
1. Choose Your International Marketplaces
The first step in expanding your business is to decide which international Amazon marketplaces you want to sell in. Amazon operates multiple marketplaces around the world, including:
- North America: Canada, Mexico
- Europe: UK, Germany, France, Italy, Spain, the Netherlands, Sweden, and Poland
- Asia-Pacific: Japan, Australia, Singapore, and India
- Middle East: United Arab Emirates, Saudi Arabia
- South America: Brazil
Each marketplace has its own unique customer base, regulations, and competitive landscape. Consider the following factors when choosing a marketplace:
- Language and Localization: Will you need to translate your product listings or provide customer service in another language?
- Logistics and Shipping: Consider the shipping costs, customs regulations, and taxes associated with each country.
- Market Demand: Use tools like Helium 10 or Jungle Scout to analyze market demand, competition, and pricing for your products in different countries.
- Compliance and Regulations: Some products may face restrictions or additional compliance requirements in certain countries. Be sure to research the regulations for your product category.
2. Register and Set Up Seller Accounts in Your Chosen Marketplaces
Once you’ve chosen your target marketplaces, you need to set up seller accounts in each region. If you’re already selling in one Amazon marketplace, you can often use your existing account to expand to other marketplaces through Amazon’s Unified Account feature.
Using Amazon’s Unified Account for Expansion
Amazon’s Unified Account allows sellers to manage multiple marketplaces from a single Seller Central dashboard. For example, if you’re already selling on Amazon.com (USA), you can use the same login to sell on Amazon.ca (Canada) and Amazon.com.mx (Mexico).
To register in additional marketplaces:
- Go to Settings in your Seller Central account and click on Account Info.
- Click Manage Seller Account and choose the regions you want to register in.
- Follow the prompts to provide additional information, such as business details, bank account information, and tax information specific to each region.
3. Set Up FBA in Each Marketplace
After registering in your chosen international marketplaces, you’ll need to set up FBA for each one. This involves enabling FBA in Seller Central and creating your international product listings.
Enable FBA in Each Marketplace
- Go to Settings in Seller Central and click on Fulfillment by Amazon.
- Enable FBA for the specific marketplace you want to sell in.
- Follow the on-screen instructions to configure your FBA settings, including return policies, labeling preferences, and shipping settings.
Create International Product Listings
You can create international product listings manually or use the Build International Listings tool in Seller Central. The Build International Listings tool allows you to replicate your existing listings across multiple marketplaces, saving time and ensuring consistency.
To use the Build International Listings tool:
- Go to Inventory in Seller Central and select Build International Listings.
- Choose your source marketplace (e.g., Amazon.com) and target marketplaces (e.g., Amazon.co.uk, Amazon.de).
- Select the listings you want to replicate and adjust pricing, if needed.
- Review the listings and click Submit.
Tip: Ensure that your product listings are optimized for the local market by using appropriate language, keywords, and cultural references.
4. Prepare Your Inventory for International Shipping
Sending inventory to Amazon’s international fulfillment centers requires additional planning and preparation compared to domestic shipments. Follow these steps to prepare your inventory:
- Check Product Compliance and Restrictions: Research product compliance regulations, restrictions, and labeling requirements for each country.
- Use Amazon’s Global Selling Guide and the Seller Central Help pages to check country-specific regulations.
- Label and Package Your Products: Ensure that your products are properly labeled and packaged according to Amazon’s FBA guidelines for the destination country.
- Some countries require specific language on labels, safety warnings, or additional packaging materials.
- Create a Shipping Plan: In Seller Central, create a shipping plan for your international inventory.
- Choose the destination fulfillment center(s) based on the target marketplace.
- Print FNSKU labels and Amazon shipping labels as required.
- Choose an International Carrier: Use a reliable international shipping carrier or Amazon’s Global Shipping Program to send your inventory to the target fulfillment centers.
5. Understand Customs, Duties, and VAT Requirements
Navigating customs, duties, and Value Added Tax (VAT) is one of the most challenging aspects of international selling. Here’s what you need to know:
- Customs and Duties: When shipping products internationally, you may be required to pay customs duties and import taxes based on the value of your products. Ensure that you include these costs in your pricing strategy.
- VAT Registration: In many countries, including those in the European Union, you must register for VAT and include a VAT number on your product listings and invoices.
- Use Amazon’s VAT Services to register for VAT in multiple European countries and file VAT returns automatically.
- Use Amazon’s Global Logistics Services: Amazon offers Global Logistics Services to help sellers navigate customs and reduce shipping costs. Consider using these services for smoother international shipments.
6. Optimize Listings for International Marketplaces
Creating localized listings is key to successfully selling in international markets. Follow these tips to optimize your listings:
- Translate Product Listings: Use professional translation services to ensure your product titles, bullet points, and descriptions are accurate and compelling in the local language.
- Use Local Keywords: Conduct keyword research for each marketplace to identify the most relevant search terms. Use tools like Helium 10 or AMZScout to find local keywords and phrases.
- Localize Content and Images: Modify content and images to reflect local preferences, measurements (e.g., metric vs. imperial), and use cases.
- Create Enhanced Brand Content (A+ Content): Use A+ Content to provide a rich, visual experience that communicates your product’s value proposition to international customers.
7. Manage Inventory and Sales Across Multiple Marketplaces
Managing inventory and sales across multiple marketplaces can be challenging, but Amazon provides tools and services to simplify the process:
- Global Inventory Management: Use Amazon’s Global Inventory Management tools to track inventory levels, shipments, and sales across different marketplaces from a single dashboard.
- Multi-Channel Fulfillment (MCF): Use Multi-Channel Fulfillment to fulfill orders from your own website or other sales channels using your FBA inventory.
- Inventory Performance Dashboard: Monitor the Inventory Performance Dashboard to identify issues, track inventory performance, and optimize stock levels globally.
8. Monitor Performance and Optimize Your Strategy
Once your products are live in international marketplaces, regularly review your performance and adjust your strategy based on sales data, customer feedback, and market trends.
- Review Sales and Advertising Reports: Use Amazon’s sales and advertising reports to analyze the performance of your listings, identify best-selling products, and track return on ad spend (ROAS).
- Solicit Customer Reviews: Encourage international customers to leave reviews by enrolling in programs like Amazon Vine or using the “Request a Review” feature in Seller Central.
- Adjust Pricing and Inventory Levels: Use pricing and inventory management tools to adjust your strategy based on local competition, demand fluctuations, and seasonal trends.
9. Scale Your Business and Expand to New Markets
Once you’ve established a successful presence in one or more international marketplaces, consider expanding further to other regions. Use the insights and experience gained from your initial expansion to optimize your approach and streamline your operations.
Common Mistakes to Avoid When Expanding to International Marketplaces
Expanding to international markets requires careful planning and execution. Here are some common mistakes to avoid:
- Not Researching Market Regulations: Failing to comply with local regulations can result in listing removals or account suspensions.
- Ignoring Localization: Simply translating listings without considering local preferences, keywords, and cultural differences can lead to poor performance.
- Underestimating Shipping Costs: Unexpected shipping costs and customs duties can erode profit margins.
- Overlooking VAT and Tax Compliance: Non-compliance with VAT and other tax obligations can lead to fines and legal issues.
Conclusion: Use Amazon FBA to Expand Your Business Globally
Using Amazon FBA for international marketplaces is a powerful way to expand your business, reach new customers, and increase sales. By following the steps outlined in this guide, you can successfully navigate the complexities of global selling and establish a strong presence in international markets.
If you need expert assistance in expanding your Amazon business globally or want to optimize your FBA strategy for international marketplaces, Marketplace Valet is here to help. Our team specializes in Amazon marketplace management, international expansion, and fulfillment services to support your business’s growth. Contact us today to learn how we can help you achieve your global selling goals!