Sell on Amazon Internationally – 7 Reasons

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By Michael Veazey. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
Reasons to Investigate Selling Internationally on Amazon - The opportunity - intro Amazon stats 2019 Amazon GMV 2019 worldwide was 280.5 Billion USD All of Amazon outside USA: Was 87B USD GMV in 2019 (31% of total) Amazon International selling summit: Global Empires Summit - Hosted by Kevin Sanderson My presentation for Summit: Overview of some lessons from the British Empire - the 4 horsemen - - and the “Merchant Mindset” BASH - and Merchant Skills that you need…. Why consider Amazon selling internationally? Reason 1: Additional Revenue - USA is about ⅔ of total - So even on average, you could add another ⅓ or so to sales by being fully diversified Reason 2: one of the easiest ways to expand - Identifying a market is hard - Getting a quality, differentiated product is really hard - Doing so profitably even harder! - Expanding once you’ve done all that EVEN in an era of more bureacracy is easier - Mostly because you can outsource the bureaucracy (tactical) but you CAN’T really outsource great sourcing (strategic) Reason 3: Profits/low competition - Fewer competitors in some places. Barriers to entry. - Inertia - Language barrier. EU Japan - Cultural barrier. Japan - VAT/Sales tax etc. barriers. EU. Japan etc - Strong currency EUR/DE - Wealthy consumers (EUR/DE) Reason for Amazon Selling Internationally: Diversifying Risk Reason 4: Currency risk - Diversifying risk 1 - Fluctuations - GBP to USD - Currency being punished - GBP! - EUR to USD tight range last few years Reason 5: COVID Risk Diversification - Diversifying risk 2 - Demand shock - US helicopter money coming to end - UK furlough coming to end - UK GDP sank 20% in Q2 2020! - USA only 10% - Supply shock - Fr. And IT FCs shutdown height of COVID spring 2020 - US FC - US FC shutdowns to come? Reason 6: Amazon Suspension Risk - Diversifying Risk 3 - Reduce single-Amazon marketplace dependence - Individual countries can change regulations and lead to suspended listings - Eg Hazmat in Germany for client account - In USA, same exact product selling, no issues - An entire marketplace Amazon account can be suspended while others remain open Reason 7: Cashflow/Working Capital trick - MOQs - profit per unit - Stock turn (cashflow) - WC - function of profit and stock turn Cost-Benefit analysis Upside (Benefit) assessment - Possible upside - Probability - Downside assessment (Cost) - How bad it could be - Possibility 3 Amazon overseas expansion opportunities - low hanging fruit Canada for US based sellers - Physically close so can affordably send stock - Straightforward. Helpful customs agents in Govt. - Speak English For UK sellers: Germany is a huge market Bigger than say Italy But similar costs/time to comply with VAT registration - All things being equal, better value Etc etc For all sellers - Japan - About same size as U.K. market GMV - 2 weeks shipping time to China. This is huge for cashflow!! - Only 10% sales tax on import cf 20% VAT into U.K. or EU - no research tools. Most sellers stay out. Again huge. Next steps Get informed about international Amazon Global Empires Summit - Hosted by Kevin Sanderson My presentation for Summit: Overview of some lessons from the British Empire - the 4 horsemen - - and the “Merchant Mindset” BASH - and Merchant Skills that you need…. Upcoming Interviews on 10K Collective podcast about Amazon International Selling Simply VAT about VAT in general, EU in particular and Brexit on 10K Collective Brexit - selling into OR from inside the UK Sales Tax update (selling in USA) Get expert help to start selling on Amazon abroad - Tax specialists - Freight forwarder (internationally) - Cultural expert (Esp for Japan) - General strategic guidance (coach)

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