The Importance of Utilizing AmazonGlobal for your E-Commerce
May 21, 2015 10 min read
Keeping in the theme of IRCE 2015’s pre-show ‘Amazon & Me’ we here at Skubana have compiled the essential reasons why your e-commerce needs to be utilizing AmazonGlobal to further strengthen your brand and increase sales.
For businesses looking to break into the international marketplace, AmazonGlobal offers powerful tools to bring existing products to customers around the world. Selling through AmazonGlobal opens doors to markets that might be impossible to access on your own. Getting started with Amazon’s international platform is simple and provides many benefits for businesses of all sizes.
International E-Commerce Growth Rates
E-commerce growth rates are rising around the world, increasing as much as 45 percent in some South American countries versus only 12 percent in the US and 18 percent in the UK. A 2014 poll shows that 48 percent of retailers earn at least 20 percent of their income from international sales. These markets are only going to keep growing as time goes on, and the businesses that take advantage of that growth will enjoy the biggest profits.
Low-Risk Trial Run
AmazonGlobal currently gives businesses access to ten international markets:
- Canada, China, France, Germany, India, Italy, Japan, Spain, some South American Countries, UK and USA
Using the Amazon platform to launch your current line of products in any of these countries requires very little extra effort on your part. You simply take your inventory and open up sales to a broader range of markets. Then you can track sales across various international channels and decide where to focus your efforts before making any big investments in advertising or expansion.
Easy Order Fulfillment
AmazonGlobal offers the Fulfillment by Amazon (FBA) program to make getting products to your international customers quick and easy. When you enroll in FBA, you ship inventory to Amazon fulfillment centers in the countries where you want to sell, observing proper import proceedings when you do. This puts products closer to customers and allows for the fastest possible delivery. Fast delivery makes customers happy and increases the likelihood that they’ll buy from you again.
Multi-channel fulfillment expands your ability to sell in international markets by connecting Amazon’s services to your business website. This streamlines the ordering process and makes things less complicated for you so that you can focus your energy on business growth rather than the struggles of daily sales.
Choosing FBA means that you can give your customers access to 24-hour customer service provided by Amazon in the local language. Amazon will also handle returns to help ensure quality service and customer satisfaction. This quality level of service reflects on your company’s reputation.
International sales accounted for 40 percent of all transactions in 2014, amounting to $33.5 billion in total sales. When you consider the fact that 35 percent of the entire world’s population uses the Internet and that 28 percent of them enjoy the convenience of shopping online, it makes sense to move your business into the international marketplace.
How to Get Started with Global Selling on Amazon
To take advantage of the benefits of a global market, the first thing that you have to do is set up a seller account with AmazonGlobal. If you already have an account in your home country, you’ll need to open another one to sell in a different area. For example, a Unified account allows you to sell to countries across the European Union. The AmazonGlobal website offers an explanation of each account type to help you choose the right one.
In addition to setting up an account, you also need to consider these elements of international selling:
- Linking a valid bank account to your seller account for collecting payments
- Understanding how international taxes and fees, including import fees, impact your pricing strategy
- Knowing the shipping costs to and from various locations and fulfillment centers
- Learning the conversion rates from international to domestic currency
- Setting prices at a level where you can make money without deterring customers
Amazon also offers the option to set up special promotions that draw a larger international audience. Popular offers such as Buy One Get One (BOGO) or free delivery helps entice customers to make larger purchases.
If you have the budget for a special pay-per-click campaign, you may wish to incorporate product ads into your marketing strategy. These ads display when customers are shopping on Amazon for products similar to yours and invite them to click through to your website and make purchases directly from your business.
International Selling Drives Future Growth
With international markets expanding at rapid rates, global selling is set to become an essential part of doing business. Getting in on these markets now gives you time to establish your business and your brand in multiple countries before the competition gets a foot in the door. Creating an international presence positions you to pitch your products to new customers as they come and to develop relationships that cross international boundaries. By affiliating your products with the Amazon brand, you have a strong platform that you can use to build new marketing strategies, connect with consumers and increase sales.
IRCE 2015 is just a few weeks away. Skubana will be there firsthand providing 1-on-1 consultations with the former business head of Amazonservices.com James Thomson. Be sure to reserve your spot and stop by our booth (#213) where we will be giving demos of our groundbreaking software and providing essential tips to help grow your business.
Work Smart. Sell More.
Written By Chad Rubin