How To Sell Across Europe With Amazon

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  Amazon's John Barlow joined us at Linn Academy 2016, to discuss how Amazon sellers can take advantage of the cross-border trade opportunities offered by the marketplace, in order to grow their business with Amazon. To watch the full talk, visit https://youtu.be/VUzisQJvdlc
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  • 1. Sell Across Europe with Amazon AMAZON CONFIDENTIAL 1 JOHN BARLOW
  • 2. Amazon EU Marketplaces >100 million visitors each month AMAZON CONFIDENTIAL 2 * Source: December 2015, ComScore
  • 3. Keys to Success on Amazon 9 September 2016 AMAZON CONFIDENTIAL 3 Access to Merchandising Opportunities
  • 4. Keys to Success on Amazon AMAZON CONFIDENTIAL 4
  • 5. Seller Fulfilled Prime AMAZON CONFIDENTIAL 5
  • 6. Fulfilment by Amazon (FBA) AMAZON CONFIDENTIAL 6 New! Small and Light FBA Fast-moving, small, and light products priced under £7
  • 7. International FBA Options AMAZON CONFIDENTIAL 7 • Stock stored in UK • International Fulfilment to EU buyers • Cross-border fee for EU delivery • Inbound stock to UK fulfilment centre • Amazon places stock for fastest delivery • Local FBA fees • Seller ships to EU fulfilment centres • Local fulfilment to EU buyers • Local FBA fees
  • 8. Pan-European FBA AMAZON CONFIDENTIAL 8
  • 9. What is Pan-European FBA? AMAZON CONFIDENTIAL 9 Pan-European FBA enables you to sell across all Europe, place inventory closer to your customers, and fulfil orders quickly and at lower costs
  • 10. How does Pan-European FBA work? AMAZON CONFIDENTIAL 10 ASIN is EU5 available Sellers sends stock to FBA Stock arrives at home FC EU5 customer receives order Products are automatically trans-shipped to EU7 FC (FR, IT, ES, DE, UK, CZ or PL) EU Customer places an order Order is shipped with a FT promise (ideally), otherwise 2-3 day delivery OOC
  • 11. Pan-European FBA AMAZON CONFIDENTIAL 11  Ship to a domestic fulfilment centre  Allow Amazon to place stock throughout Europe  Maintain a single inventory pool  Fast delivery in all 5 European marketplaces  Pay local fulfilment fees  Local language customer service and returns handled by Amazon
  • 12. AMAZON CONFIDENTIAL 12
  • 13. Pan-European FBA Fee Comparison AMAZON CONFIDENTIAL 13 BEFORE Pan-European FBA (EFN, fulfilling from UK inventory pool) AFTER Pan-European FBA (regardless where the product is shipped from) Cost Savings per item with Pan-European FBA
  • 14. What does a Pan-European FBA offer look like? AMAZON CONFIDENTIAL 14
  • 15. Product Not Offered Through Pan-European FBA AMAZON CONFIDENTIAL 15
  • 16. VAT Requirements AMAZON CONFIDENTIAL 16 • Enrolment into the Pan-European FBA programme will trigger additional VAT obligations in EU7. – UK, Germany, France, Italy, Spain, Poland and Czech Republic • You will be responsible for the collection and payment of your taxes, as well as the filing of all relevant returns and VAT invoicing. • Third-party tax advisers*: *Amazon does not provide tax advice or compliance services and does not endorse the services of any tax adviser.
  • 17. FBA Seller Anecdotes 9 September 2016 AMAZON CONFIDENTIAL 17 “[Pan-European FBA] enabled us to rapidly expand our business to all 5 European marketplaces and we are seeing fast growth and developments that far exceeded our expectations.“ “We actually wanted to try it out first, so we started with about 100 ASINs, but now we have ~22k ASINs enrolled in Pan EU. It is a great way to grow our business in Europe”
  • 18. AMAZON CONFIDENTIAL 18
  • 19. In Summary AMAZON CONFIDENTIAL 19 Pan-European FBA enables you to sell across all Europe, place inventory closer to your customers, and fulfil orders quickly and at lower costs
  • 20. Merchandising Opportunities AMAZON CONFIDENTIAL 20
  • 21. What are Sponsored Products? AMAZON CONFIDENTIAL 21 Pay-per-click advertising solution, enabling Sellers to promote their products on Amazon with keyword- targeted ads. In 2015, sellers worldwide using Sponsored Products grew more than 100 percent!
  • 22. How do I begin? AMAZON CONFIDENTIAL 22 Out of Country Expansion Promotion Activate Sponsored Products in at least 2 new locales and get €25 free click credit in those locales plus an additional €25/£20 in the locale you first used SPs for every new locale you activate!
  • 23. Lightning Deals: 3 Types of Deals AMAZON CONFIDENTIAL 23 Deal of the Day Lightning Deals Best Deals
  • 24. Why should I discount my products? AMAZON CONFIDENTIAL 24  The “halo effect” on ASINs included in lightning deals during key events will see a surge in sales after the deal run date (at full price).
  • 25. How Can I Participate in Lightning Deals? AMAZON CONFIDENTIAL 25 Seller Central (Advertising -> Lightning Deals)
  • 26. Q&A AMAZON CONFIDENTIAL 26
  • 27. AMAZON CONFIDENTIAL 27 Thank you! From the Amazon Merchant Services team
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