How Amazon FBA Sellers can master cross-border Expansion

How Amazon FBA Sellers can master Cross-Border Expansion

The ongoing e-commerce boom has opened up new international sales channels for online businesses of all sizes. And the absolute winner in the e-commerce game is Amazon. The company’s brand value has surpassed that of Google and Apple and the retail giant continues to grow. And that makes not only Jeff Bezos happy, but also millions of third party sellers actively selling on Amazon.

Amazon now has marketplaces in 14 countries in North America, Europe and Asia with thousands of new users everyday. You too can benefit from the continued growth of the marketplace and its popularity by expanding your business activities with Amazon worldwide – and we will show you how to do it.

Selling worldwide increases your sales volume and diversifies your risk

Choose a market & product

Market

Before you can enter the worldwide market, you have to decide which product you want to sell and in which country you want to sell it. Especially if you have no experience with cross-border trade yet, you should first focus on one country only to gather your first experiences. Professional Amazon consultants or consulting agencies can advise you on which markets offer great potential.Once you have found a market that you want to sell in, the second step is to find a suitable product.  

Product

Not every product can be sold equally well in every country. Just because your product sells well in the USA doesn’t mean that sales in Spain will be similar. Several factors, such as the weather, infrastructure or cultural differences, are responsible for this. A snow shovel machine will sell better in Germany than in Florida and in the Netherlands you will sell more umbrellas than in New Mexico. You get the idea. So it is important to conduct a detailed product research for each country you want to sell in. Luckily, there are many seller tools that simplify this research.

When choosing a product to sell, ask yourself why people would buy or not buy it

Get familiar with local laws & regulations

Product Safety Law

One point that many sellers neglect is the legal framework in each country.  There are significant differences between countries, especially in terms of ingredients or technical components. In the USA, for example, some ingredients are permitted that are strictly prohibited in the EU. If you sell products with prohibited ingredients or use technical parts that do not comply with local safety standards, you run the risk of being sued to hundreds of thousands of dollars in fines and losing your business. 

Also, what safety instructions and labels must be affixed to a product can vary from country to country. If you are not sure whether your product complies with local regulations, you should at best consult a legal advisor for Amazon FBA matters.

Tax Law

The kind of law that ruins most Amazon merchants’ business: tax law. Tax laws are highly complicated and hardly understandable to laypeople. In some countries the authorities are less strict with tax rules, in other countries you can lose a lot of money very quickly if you don’t handle your bookkeeping properly and pay the taxes imposed by the law. 

And you can be sure of one thing: the authorities don’t care whether you made an error by mistake or intentionally. Luckily, there are tax lawyers specialized in Amazon FBA who are very familiar with the FBA business model and know the tax duties an Amazon seller faces. So if you are not 100% sure of how a country’s tax laws work, it is best to consult an expert. 

Think of a Logistics System

Get your Products to the Warehouse

So now that you know which product you want to sell, in which country you want to sell it, and what legal requirements you need to comply with, you need to think about your supply chain. If you are buying your goods from China, it can already be a challenge to coordinate how the goods get to the warehouse in your own country. If you now work with a Chinese manufacturer and a warehouse in a country whose language you do not speak, there is a high risk that many mistakes will occur due to miscommunication. To get your products from A to B smoothly, you should hire a reliable freight forwarder who speaks your language and plans the entire delivery process for you – from the manufacturing factory to the warehouse. 

Choose the right Fulfillment Center

One of the most important tasks now is to find a reliable fulfillment center. After all, you want your customers to have a 100% positive shopping experience with you, so they can shop with you again and recommend you to others. Therefore, you should make sure that a fulfillment center meets the following criteria:

– Fast delivery

– Uncomplicated and good communication

– Reliable Return Management

There are also detailed guides on how to find a great fulfillment center, but these are the core criteria every fulfillment center should meet.

Designing a global logistics chain is important for the success of your expansion

Promote your Product

Get perfect Product Photos

You’re almost ready to sell your product. Now all you have to do is think about how you want to promote your product. A decisive factor are your product photos. They are the first thing your potential customers see, so they should be perfect. If you’re not a professional photographer and photo editor, you should assign this task to an experienced Amazon FBA product photographer. Usually, the photographer will take studio pictures as well as some lifestyle pictures to give your customers an idea of how your product can be used in their everyday life. They are familiar with Amazon’s specific requirements and will give you flawless results that will drive your sales.

Create Optimized Product Descriptions

After the product photos, the second thing potential customers will look at is your product description. It should be appealing, well-structured and, above all, SEO optimized. After all, your product will only be found by your customers if you include the right keywords in your product description. And only if the customer can quickly and easily see why he should buy your product will he do so. Professional Amazon SEO Copywriters and listing optimization tools can help you increase your visibility and achieve higher conversions. 

PPC

An important step in the promotion of your product is paid advertising. The most common form is PPC. In a successful PPC campaign it is important that you put in the right keywords and negative keywords and continuously optimize the campaign. Ideally, you should have an Amazon PPC service providers that employs native speakers to take on this important task. In the Amazon FBA world, there is hardly any other area where you can burn your advertising budget as quickly as with a bad PPC campaign.

Get your Profits Home

Find a suitable Payment Solution

In the last step, we will about the most pleasant part of doing business: the profits. Ever-changing conversion rates, transaction fees and other difficulties used to be part of every Amazon seller’s everyday life. Fortunately, there are now global payment solutions for Amazon sellers that help Amazon sellers process their payments. There are solutions for a wide range of business sizes – just pick one that suits you best.

Hire the right Amazon Service Providers

Now that you know how to successfully sell worldwide with Amazon, the only question is where you can find the right service providers to help you expand.

On Sermondo you can find, compare and contact service providers from all over the world in over twenty categories. All companies and freelancers are specialized in working with Amazon businesses and can thus provide you with the best possible service.

Alternatively, you can also post a job listing with your requirements and service providers who can meet these requirements will then contact you.

Easy as pie. Free of charge. Transparent.

Kristina Mertens

Kristina Mertens

Head of Business Development

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