Amazon Europe is one of the marketplaces that enables geographically selling to 28 countries. Due to its large and complex structure, there are various answers, criteria and factor to answer how to open a store on Amazon Europe? It is necessary to complete various procedures such as research, marketing and legal liabilities for marketing in Europe. Amazon Europe offers various tools and services that simplify processes from product launching to sales. Well, how can you open a store on Amazon Europe? What do you need to do to open a store on Amazon Europe? The answers for these questions and many more are in our article…
Step by Step Store Opening on Amazon Europe
Amazon Europe is the largest online marketplace after the USA to reach customers in 28 countries. You can grow your business and accelerate your cross-border e-commerce start-up with Amazon Europe. Sellers looking for the answer to how to open store on Amazon Europe are asking which countries they can sell. It is possible to select one or more countries in Amazon Europe market. But in this process, you need to follow Amazon Europe requirements as well as local legal procedures. Localisation or product listing in the local language and customer support in local language are among the important factors.
For all these reasons and more, store opening on Amazon Europe is complicated. But European market with 340 million more potential customers offers an important selling chance. Therefore, Amazon Europe can be the most practical and fastest way to open to this market. Well, how can you open a store on Amazon Europe step by step? What are the processes to open a store on Amazon Europe? How can you become Amazon Seller in Europe?
- Decide on target European market!
Amazon has five online marketplaces in Europe namely England, Germany, France, Spain and Italy. You can use one seller account for five marketplaces. But you need to choose one marketplace at the beginning. This selection will help you to determine various legal and logistic steps. Instead of launching the products in five markets, it is better to launch in one market. You need to ask the following questions when you choose the basis market:
- Which country will you be your base to distribute products?
- Which country will be a good beginning in terms of demand and competition?
- Which country offers the best logistic advantages for shipment, tax and customer services?
For example, Amazon.co.uk (England) can be a good start to sell English-speaking customers. Additionally, it is an ideal entrance point to European markets since third-party services such as accounting and transportation are in English. Amazon.de (Germany) is the largest EU market. This country has high number of English speakers. The competition is lower than England and taxes are better.
- Research legal liabilities!
When you sell on Amazon Europe, there are certain legal liabilities for every country. These liabilities are:
- Customs regulation, law and fee
- Consumer rights
- Commercial invoicing liabilities
- Intellectual property rights
- Marketing and tagging laws
- Product compatibility
- Environment, health and safety requirements
As it can be seen above, there are lots of legal liabilities to meet! You might have support from international business lawyer. Additionally, it is better to work with expert accounting and shipment firms for VAT, official record and customs. If you have few products to sell in Europe, you need to research legal liabilities for each product for the selected countries.
How to Open Store on Amazon Europe? – Click for European Tax and Regulatory Provisions to open Amazon Europe store!
- Research fulfillment options!
Researching Amazon Europe fulfillment options means choosing the right one for your business. There are two fulfillments to sell in Europe: FBA and FBM.
Amazon Europe FBM Fulfillment: This option can be used as Amazon Europe Seller. With FBM, you can use third-part storage and distribution centres to send from your country or Europe.
Amazon Avrupa FBA Fulfillment: Amazon offers three FBA option in Europe: European Fulfillment Network (EFN), Multi-Country Inventory (MCI) and Pan-European FBA. Each FBA options has advantages and disadvantages. You can choose any of them depending on the budget, sales target and shipment requirements. EFN enables you to choose distribution centre in one of the EU countries. Your products will be stored in Amazon fulfillment centres and distributed to Europe. If you want to store your products in multiple distribution centres, MCI will be an ideal option. This way, you can control which products will be store in which countries and shipped from there. Pan-European FBA is the simplest option for EU fulfillment. This is ideal for sellers who want Amazon to manage the entire process.
- Get EORI and VAT numbers!
After market selection, legal liability research and Amazon Europe fulfillment strategy selection, the answers for how to open a store on Amazon Europe are revealing. At the last stage, you need to have EORI and VAT numbers. Economic Operator Registration and Identification (EORI) number is a number necessary to export goods to Europe.
If you plan a high profit margin, you need to add consumption tax for each product. For this, both FBM and FBA sellers must have VAT number. If you plan to sell only in one country, it is enough to get VAT registration in this country. But as the market expands, you might need VAT registration in multiple EU countries. In this case, VAT process might be hard to manage. Therefore, when you sell in Europe with Amazon, it is important to work with an accounting company that can manage VAT or tax procedures in Europe.
- Research and choose payment options!
It is important how you will collect payments when you sell on Amazon Europe. You can use certain payment tools or choose online money wiring applications for Amazon to pay your bank account in your country. This way, you don’t need to open a bank account in every country you sell.
- Price your products for European market!
The next stage is pricing the products. In product pricing, you need to consider VAT, shipment, customs and fulfillment (FBA and FBM) frees. Amazon Repricer tool can help you with that.
- Thing about the language barrier!
When you offer your products to a market, it might not be enough to have product description and customer support in the local language. Amazon provides 24/7 customer support in the local language. This is not a risk for those who choose FBA. But if you choose FBM, you need to have customer support in target market language or outsource this service. It is not important whether you choose FBM or FBA for product listing; it is important to translate to suitable language.
- List products on Amazon Europe!
When we are looking for the answer to how to open a store on Amazon Europe, we have product listing in European market at the last stage. You need to be careful about the following in product listing:
- List the products in the target country and then, use Amazon properties to list and edit in all marketplaces.
- You can manage each channel separately and list products per channel. However, you need to make sure that Amazon processes the entire inventory for each country.
- Don’t forget to optimise Amazon product listing for each market!
Amazon Europe seems complicated but you can’t open to European markets without these requirements. The answer to how to open a store on Amazon Europe are in these steps. If you complete these steps, sales on Amazon Europe will significantly scale up your business.
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