Overcoming Brexit and beyond to sell successfully on Amazon EU

Have you put off selling on Amazon EU this year? Perhaps you used to have a profitable revenue stream in the EU but stopped due to logistical and administrative challenges?

Now is the time to take a second look and reconsider your options. Selling on Amazon Europe is a major opportunity for British brands looking to expand. Firstly, the appetite of European consumers purchasing on Amazon is accelerating rapidly.

Over 2700 products a minute were sold on Amazon EU in 2020.

according to Amazon Global Selling

Secondly, the caution and instability around Brexit that means the competitive landscape has shifted dramatically; UK brands willing to invest in market opportunities will gain a significant competitive advantage.

Are you missing out on substantial market share in Europe because you’re not sure how to make Amazon EU profitable?

What we know.

At Sell Beyond, we have seen first-hand the unique growth opportunities selling on Amazon EU presents, and as Amazon experts, we strongly recommend that UK companies need to consider expanding their sales channels into Europe in 2022.

With ever-increasing demand from consumers, companies who have continued to trade in the EU have taken advantage of the opportunity while working hard to overcome the challenges of Brexit.

Companies that have chosen to analyse the issue objectively and stayed in the market report competition is far less intense in Europe, meaning that there are bigger gains for fast-movers in 2022.

However, we have also seen many UK brands leaving Amazon EU completely as they feel that the obstacles for trade have become too challenging.

Now is the time to understand why that is and what can be done to overcome these issues?

We know that for many companies, trading in Europe has created more than just an administrative issue. Shipping has changed since Brexit.

• There is fear, panic, and overwhelm, especially when brands export and manage freight and logistics.
• Amazon themselves aren’t the best source of advice and support, so it isn’t easy to get the right guidance.
• Dealing with shipping admin, agents and understanding export protocols is a whole new realm of pain, paperwork and logistics.
• Finally, the challenges of actually getting a regular supply to an FBA warehouse in Europe can often be the final straw.

Despite all of this, at Sell Beyond we know that selling on Amazon EU can be done. With the right advice, guidance, and decision-making, the return on investment can be significant and the opportunities for growth unlimited.

This article will show you the current opportunities for 2022 and explain HOW you can take advantage of them.

How big is the growth opportunity on Amazon EU?

According to Amazon Global Selling, over 2700 products a minute were sold on Amazon EU in 2020.

European consumers are buying more online and on Amazon EU. In 2021, Amazon reported its total revenue of 44 billion Euros. The below graph demonstrates the rise of Amazon Europe as a selling platform from 2011 (Statista, 2021)

Up on 2020, European buyers want to buy online, and Amazon is their platform of choice.

UK companies selling on Amazon Europe can reach millions of additional customers across 28 countries, including Germany, France, Spain, Italy, Austria, Turkey, Poland, The Netherlands, and Sweden.

• Beyond Amazon, however, Europe experienced increases in B2C e-commerce turnover, with the eCommerce sector growing 12% overall in 2020.
• Nearly three-quarters (73%) of Europeans purchased something online in 2020, up from 66% in 2019 and 64% in 2018 (FEVAD 2021).
• As we could expect, the largest jump in “e-shoppers” was from 2019 to 2020, when the Covid-19 pandemic pushed consumers online.

According to McKinsey’s report published this month (Nov 2021), Omnichannel in Europe is a new reality.

Omnichannel—shopping and researching both online and in stores—showed itself to be firmly entrenched for more than half of European consumers across all product categories, especially for sports, apparel, and home-related purchases. Empowered by mobile apps, remote shopping, and home delivery, consumers have adopted lasting new habits and mindsets.

There is a very real opportunity in 2022 for UK brands that want to extend their sales channels into Europe and take advantage of the purchasing power of Amazon EU consumers.

Should you launch on Amazon EU or start selling again in Europe?

Absolutely. But there is a caveat. You’ll need to prepare for the long game.

The truly successful, and by that we mean profitable, UK brands on Amazon remain consistent in their approach. They’ve spent considerable time and money putting the right operational structure, people and products in place to create a successful sales channel that delivers incredible results.

Many UK companies left the Amazon EU marketplace in 2020-21 and stopped exporting. For some, this hiatus was a short-term issue caused by the new administrative procedures, shortage in haulage, or other operational problems. Other companies simply decided to sit out and wait to see how the dust settled after Brexit.

However, Amazon is not like Google. Dipping in and out of Amazon to sell will NOT be rewarded.

You need to be seen on Amazon to sell, so if you’ve opted out for 6 months, you’ll be dropped from page 1 and need to start again. Now it’s not as bad as it sounds, but there is work to be done to regain your visibility and get back onto page 1. Investment is needed at the right time and in the right places, BUT the returns will be profitable.

If this sounds familiar, then it’s time to reconsider getting back in the game.

How are UK brands overcoming the challenges and growing 20% on Amazon EU?

We see many UK companies thrive on Amazon EU, both new to the market and seasoned sellers, and they all know one thing: there are significant gains to be made IF you have the right entrepreneurial spirit and have done your sums!

Talking to our clients who took on the challenge in 2020 - 2021, they put their success down to several factors, BUT each shared 3 common responses with the Sell Beyond team.

1. There are currently fewer competitors in the market, so fast-moving UK brands can take advantage of gaining market share.
2. Their financials were spot on: They took the time to calculate the exact costings of each of their top-selling items, shipping costs and profit margins to ensure profitability.
3. They didn’t want to abandon a previously profitable sales channel OR miss the market, so they adapted and continued OR returned to sell on Amazon EU quickly.

While these 3 points aren’t exclusive to every company, the more research we did, we realized that these were crucial components in their attitude towards achieving growth on Amazon EU.

Despite the administrative and logistical challenges for UK companies who wish to export to the EU, they tackled those challenges head-on, increased their sales revenue over and above their expectations.

Start with a fresh perspective.

Selling on Amazon EU is very different from traditional sales channels, so you need a different strategy to achieve your goals. It’s vital that before you begin making plans to ship anything, you think about this in detail.

The information out there is bewildering and mind-boggling. The data overload alone is enough to make you bury your head in the sand.

BUT if you follow our guide, you’ll begin to understand what is really important, what matters and how to make a plan that prioritizes your tasks to get the wheels in motion.

1.????Your priorities should be based on the 80/20 rule. Knowing your numbers is crucial to success on Amazon EU.

• What are your Top 10 Sellers in the UK. What is currently working for you here?
• Which are the most profitable products you sell?
• Work out the exact unit cost price for each item here in the UK.
• How much profit do you make on each of your top 10 items?

2.????Next, you’ll need to understand if there is a market for your top 10 products.

Begin by making a detailed market study to understand current and future demand.

You can also get our monthly Talking Trends to stay updated with what’s selling on Amazon EU. Sign up here.

3.????Now, look at your internal operations. Do you have the capacity to fulfil increased demand for each product? Can your suppliers cope with increased demand?

?Your supply chain management needs to be slick and seamless to deliver on time consistently. Amazon EU demands a frequent rotation of stock, and inventory will need to be readily available in the European warehouse to fulfil orders immediately.

Do not underestimate: The Importance of Inventory

It’s important to note here that inventory is hugely vital to your success on Amazon EU.

On all of Amazon’s platforms, if a company is not in stock, they will slowly lose their organic rankings on the search results page.

Despite selling on Amazon EU for years, after 6 months of being out of stock, companies have been forced to begin their Amazon sales ranking once again from a standing start.

In practice, companies like Dirtbusters have had to commit more expenditure to PPC to ensure their products appear on page one. The upside is that fewer UK competitors in the marketplace will accelerate traction back to the top.?

Remember, you need to be seen on Amazon EU to sell. Your advertising, inventory and sales success are intrinsically linked.

4.????Finally, take the time to analyse your pricing strategy. There will be a sweet spot between your profit margin and consumer appetite. Your job is to find exactly the right price point to maximize sales and, ultimately, profits.

Once you’ve figured this out, then it’s time to talk transport.

Shipping has changed since Brexit. You’ll now need to manage the shipment of your goods into Europe directly. There are no longer Amazon EU warehouses in the UK that will do it for you. You’ll also need to book space in the European warehouses, manage customs regulations and all the compliance paperwork it involves.

Now, don’t panic; there are experienced partners that you can work with to help you manage the process until you’re confident to manage it in-house.

We’d strongly advise you do this; otherwise, all your hard work getting to this point may be for nothing. The last thing you need now is your goods returned to the UK due to an administrative error.

Start by getting clear on the following:

1.????Calculate your shipping costs into Europe.

Work out the optimum shipment and calculate your costs per unit to ensure you’re still profitable.

You don’t want to be laden with returns or damages, but it happens, so make a contingency for this.

2.????Find a good agent to work with.

Your goods are precious, and you’ll need a shipping agent to help you navigate customs, timings, rules and regulations.

3.????Confirm how you can get goods shipped into an FBA warehouse in Europe.

This will ensure that your goods are regularly replenished with Amazon and you can meet consumer demand immediately.

?4.????Work out your timings to ensure you don’t miss the market and to guarantee regular fulfilment in the warehouse.

This is where your advertising, operations, and logistics alignment needs to come together to ensure everything is like clockwork. It’s a challenge, but it can be achieved with solid planning, preparation and experienced business partners.

Take time to plan your Amazon Europe move.

Understanding your costs, your options and your market opportunity is essential for overcoming Brexit and beyond to sell successfully on Amazon EU.

The opportunities are there, and the rewards substantial, but you’ll need to read the small print to really win on Amazon EU.

We can’t emphasize enough the importance of detailed planning and costings, but even that isn’t enough if you don’t understand the rules of the game: Amazon's rules are different to Google and Amazon expects you to play by their rules.

It’s not a secret or even a members-only club, despite the hurdles they want you to jump over. However, your entrance into Amazon EU is made much smoother with the right partner.

At Sell Beyond, we help companies like yours to sell more efficiently and profitably on Amazon EU. It’s all we do. Everyday.

By focusing on this single thing, we help you create a solid business plan of action, so you and your team are focused on doing what’s important, achieving the biggest results in your export markets.

With our proven Amazon scaleup process and focus on profitable results, we guarantee a tangible return on your investment.

It’s time to embrace Amazon EU and gain your share of the market while the competition continues to ponder their options. Join our LinkedIn Live on Wednesday 8th December so we can take you through the options.

To see how Sell Beyond can help you assess your options in Europe, book an initial call here, call 01206 899020 or email?[email protected]