Amazon Global Selling

Amazon Global Selling in the USA: Everything You Need to Know

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Amazon’s popularity among vendors and buyers makes it unsurprising that the pure-play platform is valued at billions of dollars. This platform makes it simple for vendors to get their products in front of a global audience, and businesses can reach a broader audience in more countries.

Amazon is the biggest e-commerce marketplace in the world and has opened its doors to sellers all over the globe. With an ever-growing base of buyers and a massive collection of products, Amazon could be your gateway to making huge profits online because Amazon has millions of regular users, and merchants may reach a large and varied audience there. 

According to Statista, Amazon recorded total net sales of roughly 134.38 billion US dollars in the second quarter of 2023, above the 121.23 billion US dollars in the same quarter of 2022. Amazon accounted for 37.8% of US eCommerce spending in 2022, which is anticipated to climb by another 11.7% in 2024.

Amazon and its growing popularity With more and more people making online purchases yearly, online merchants have plenty of room to grow. The first step in setting up an online store is to select an e-commerce platform. Amazon is a massive online retail platform serving millions of users. Selling more on Amazon can be a profitable business strategy for vendors trying to build their brands. Amazon gives vendors multiple options for growth.

Amazon is an online marketplace with over 197 million customers, in which you must compete with other online retailers in the same market.

Amazon FBA program lets businesses send goods to Amazon fulfillment centers, which store, pack, and ship merchandise.

Amazon has more competition than most other online marketplaces despite its high traffic. Because the style and layout are standard across all retailers, standing out can take time and effort. However, Amazon advertisements help you market product offerings and enhance your exposure on product pages and search results.

Let’s first clear up what the Amazon Global Selling Program is?

Amazon’s Global Selling program allows brands and sellers to sell their products to worldwide consumers on Amazon’s global marketplace.

In a localization strategy that drives the global expansion of your brand, effective communication is crucial. Obtaining a substantial market share is an additional objective. Regarding international sales, cultural differences are of the utmost importance. The products they favor, the language they speak, and so forth. A sufficient understanding can lead to adverse consequences such as decreased revenue, dropped conversion rates, and negative feedback.

One must take advantage of Amazon’s massive global reach by employing its cutting-edge international shipping capabilities, which include more than 200 million paying Prime members and hundreds of millions of active consumer accounts globally. Currently, Amazon offers you a platform to sell across multiple international marketplaces (including the US, Canada, India, Singapore, UK, Europe, Japan, Australia, the Middle East, and others).

For example- Prime Day is the best event of the year for conversion (18.6%) and revenue (primarily due to increased spending) for Amazon compared to Cyber Monday and Black Friday.

Amazon global selling program

  • Conduct market research before deciding which online platform to sell on. Consider what taxes and regulations you may have to deal with before entering a new market. Furthermore, Amazon’s wealth of tools and services makes selling internationally easier than on other online marketplaces.
  • Sign up and prepare your Listing/ List Products – Use Amazon’s tools and services to manage multiple marketplace listings and seller accounts.

    By syncing prices across different platforms and adding offers, the Build International Listings (BIL) tool allows you to sell globally. BIL enable you to post multiple offers to other markets quickly. Then, using your parameters, BIL controls your pricing offers across markets via automated changes.

    International Expansion: By listing your products on Amazon’s global marketplaces, you may reach buyers across the globe. Amazon.co.uk (United Kingdom), Amazon.de (Germany), Amazon.fr (France), Amazon.ca (Canada), and Amazon.jp (Japan) are a few of the most popular Amazon marketplaces. Amazon’s Global Selling program facilitates international expansion.

  • You can use Amazon’s shipping and fulfilment services to get orders to consumers faster, no matter where they are. Get familiar with the shipping and fulfilment processes, charges, and requirements of other countries.
  • After shipping your products to Amazon’s global fulfilment centres, FBA handles picking, packaging, shipping and customer service requests in your customers’ native languages around the clock.
  • With FBA Export, you may sell products to customers in other countries without additional fees. With FBA Pan-EU, you can ship to consumers all over Europe without worrying about the logistics.
  • You can operate your brand/business by offering customer service and localized country returns, either directly or through Amazon. Also, you can get paid in the currency of your choice. Amazon’s tools and recommendations can increase foreign sales and globalize your business.

According to Statista, the United States remains Amazon’s largest market. In February 2023, there were over 2.2 billion monthly hits on its amazon.com domain. That is around four times the quantity of visits to amazon.co.jp, Amazon’s Japanese Website.

Here’s how Amazon Global Selling works:

(A) Operational Strategies

1) Create an account on sell.amazon.com

To sell on Amazon, you must first create an Amazon Seller Central account. Register your seller account in the marketplace you chose; in this case, it’s the USA. To set up a global seller account, you are required to use an international credit card.
Some mandatory registration requirements are a Business email address or Amazon customer account, Chargeable credit card, Government ID (identity verification protects sellers and customers), Tax information, Phone number, and bank account information where Amazon can send you proceeds from your sales.


(i) Choose the Account type (Professional or Individual Account)

You can choose between a professional or an individual plan. In the individual plan, membership is free, but there is an additional selling fee of USD $0.99 per item, as well as referral and variable closing fees. On the other hand, the professional plan costs $39.99 and saves you from paying the additional charges.

Note: Both plans are eligible for FBA.

(ii) Taxes will also be involved in worldwide commercial transactions, varying from country to country. As a result, you should undertake an extensive study on the taxes you will face in the nations where you sell, and engaging an expert to handle such a task is a good option.

1. Prepare your Listing/ List of Products

Once you have completed the documentation and registration process, you should list your products on Amazon.

On a side note, Amazon charges a referral fee for each item sold. The amount depends on the product category. Most referral fees are between 8% and 15%. 
Let’s continue with the listing now.
When listing, make sure to keep your listing brief and concise. If necessary, translate or use the country’s slang to fit into the local language for better engagement. Product detail pages do not belong to a single seller. The product title, image, and details must be specific to the product, not to any individual product or seller promotions. Ensure the product detail page outlines any additional items essential to the product’s function.

An example of a good Product listing page here:
Some tips for listing your products:

  • Product Images – Make sure you have great product images. Images are the first thing that customers see, and it is an actual representation of your product and brand. Adding between 3 and 6 images can increase conversion by up to 80%.
  • Product Title – Make your title compliant with Amazon guidelines and SEO-friendly. A solid product title can pique user consideration. E.g.:- Amazon product titles are heavily weighted when ranking product pages
  • Product Description- The descriptions are as important as photos and titles; they help convert those still on the fence after clicking.
  • A+ content/enhanced content – Use this to showcase your brand and product’s journey with attractive infographics. But to be eligible for this feature, you need to get your product registered through Amazon’s brand registry.
  • Product Videos – It is noteworthy that approximately 90% of consumers perceive videos as beneficial when evaluating online purchases, and a compelling product video can boost conversions by 80%.
  • Features/Bullet Points – Display your product’s features and USPs with excellent and valuable points.

Some extra tips:

  • Don’t include information on setting up your shipping rates, sale pricing, and promotions in Seller Central in your product listing details.
  • You should not mention keywords such as pesticides, germs, antibacterial, antifungal, or microbes in your listing of food items. This leads to product listing suppression on Amazon. In addition, if your product requires such keywords to be added, you will need to submit a certification of your claim that is newly renewed.

Amazon global selling

Amazon Fulfilment Methods

If you choose to fulfill orders yourself, you must use a carrier that ships internationally. It’s also your responsibility to avoid customs delays, additional taxes, and duties for your customers. You should also provide tracking information and ensure the customer is happy with the shipping process.

Amazon FBA lets you import your products and store them in a local fulfillment center in the country you’re selling in. FBA allows you to improve your competitiveness in the marketplace by speeding up the delivery time.

Amazon adjusted FBA fees and costs in 2023 in response to escalating petroleum and fulfillment handling expenses alongside broader inflationary economic trends. Understanding these shifts is crucial for ensuring that your products and brand are positioned to fulfill the objectives of your company in 2023.

With Paxcom, you can simplify your order fulfillment process and gain insight into the most profitable ways to handle your inventory.

The fulfillment mechanism selected by Amazon sellers—Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM)—is a significant differentiator.

Fulfillment by amazon

4) Receive Payments

Everyone is finicky when receiving payments, primarily if you sell outside your region.To overcome such limitations, it is critical that your website displays pricing in multiple currencies that allow for easy conversion. Customers’ preferred payment methods can change from market to market, making it difficult to achieve consistent success in eCommerce. Fret not; Amazon makes it easy for you, and you can get paid in the following ways:

  • When a customer makes a purchase and deliveries are completed, Amazon collects fees and transfers them to your account. You get paid in your currency.
  • Have a bank account in the market where you are selling (you might need to set up a local company for this)
  • ACCS (Amazon’s international payment solution)- Amazon Currency Converter for Sellers is an optional service that allows Amazon sellers to receive the net proceeds of their earnings into their local bank account if that account is located in a different country or region from the marketplace where they are selling.
  • The third-party currency conversion service will cost 1% of the transaction.

Besides scaling your business internationally, we are all well aware of Amazon advertising- DSP and sponsored ads and the benefits sellers get from them. Like you would run campaigns on your home Amazon marketplace, you should partake in the same.
Amazon’s advertising console uses a Pay-per-click (PPC) model. Run advertising campaigns to increase brand awareness and reach, increasing sales. Make sure your brand is registered on the platform before you begin advertising.

Types of Amazon Advertising

1) Sponsored Ads

Steps for creating advertising campaigns

(a) Sponsored Products

Amazon sponsored productsImage Source – Amazon.com

Sponsored Display advertising is available to agencies and sellers enrolled in the Amazon Brand Registry if you sell on the Amazon store.

Sponsored Products or Product Targeting can prove beneficial in boosting the visibility of Amazon product listings. Analyze the keywords and data run campaigns targeting competitor’s keywords and keywords related to the businesses that are competing with you. These are keyword or product-targeted ads that look very similar to organic search results and link to the product detail page. Regarding content, Sponsored Product ads are created automatically based on the advertised product listing and are only indirectly customizable. They appear within shopping results pages and on the product detail page)

  1. Fulfill customer orders

There are two ways to fulfil orders to international customers: fulfilment on your own – Fulfilled by merchant (FBM) or Fulfillment By Amazon (FBA).

FBA

  • The seller sends the products directly to Amazon
  • Amazon stores the inventory
  • Amazon handles the shipping, picking, customer service

When to use:-

  • You don’t have logistics in one place
  • You have items with less weight

Shipping costs must be on your mind. Your shipping costs will vary based on whether you choose to use Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM)

(b) Sponsored Brands

Sponsored Brand Ads

Image Source – Amazon.com

Sponsored Brands can increase brand and product awareness among Amazon shoppers through the placement of engaging advertisements in pertinent search results.

Sponsored Brands provide exposure for your company’s portfolio of products. You can enhance product visibility and sales by putting a selection of your products, your brand logo, and a personalized headline in these advertising that display on search engine results pages. sales.

(c) Sponsored Display Ads

Amazon sponsored display ad

 

Image Source – Amazon.com

 

Amazon-sponsored display ads are product ads displayed to customers when they browse the product listing page. These help to increase brand awareness and drive sales of your products.

Advertisers can use Sponsored Displays to find, reach, and interact with consumers at the optimal time and place in their buying journeys.

Sponsored Display Ads follow both the Cost Per Click (CPM) and Cost per thousand viewable impressions (vCPM) model. For instance, when a customer searches for a camera and lands on the product with a buying or reviewing decision, your ad appears over the page, which helps in remarketing, allowing you to engage with them while looking for a similar product. It helps in engaging the correct audiences in the most critical scenarios and driving new demand for your company.

According to Statista, sponsored advertising on the US platform often has more excellent conversion rates. Sponsored display advertising on Amazon.com had a 6.9 per cent median conversion rate in 2022, up from 6.9 per cent the previous year.

Display Ads placement:

It helps you target buyers at various stages of the purchasing process, considerably increasing your advertising return on investment (ROI).

  • Product Detail Pages on Desktop and Mobile
  • Customer Review Pages
  • Top of the Offer Listing Pages
  • Others

Sponsored Display Ads offer three types of targeting options: product targeting, views remarketing, and audience interests-

  • Product Targeting: This allows you to reach customers looking at similar items. This can be done by placing ads on competitors’ listings.
  • Views Remarketing: With this, sellers can retarget previous visitors to their listings. These ads will be shown to people who have looked at your product’s detail page or similar products and categories.
  • Audience Interest Targeting: This targeting option enables you to introduce your products to a new audience interested in your products to increase awareness.

(d) Sponsored Brand Video Ads

Sponsored Brand video ads

Image Source – Amazon.com

Sponsored Brands Video ads are a type of Sponsored Brand ad only available to Brand Registry sellers. Sponsored Brands Video ads usually appear halfway down the first page of Amazon search results. Video ads take up most of the page, unlike typical Sponsored Product ads, which look like organic search results. When 50% of the pixels on the screen are visible, the video plays automatically.

Sponsored brand video ads

In 2022, online sales on Amazon’s US platform increased significantly during Cyber Monday and Black Friday  as a result of sponsored adverts, according to Statista. Compared to the previous 14 days, attributed sales increased by 164 per cent during the sale events. As a result, attributed sales climbed by 75% in 2021.

A brand’s video appears next to a product’s thumbnail in these ads, including its main image, title, reviews, price, and shipping information.

According to Statista, Sponsored ads on Amazon’s US platform resulted in a large rise in online sales during Black Friday and Cyber Monday in 2022. When compared to the previous 14 days, attributed sales increased by 164 percent during the considered sale events. As a result, attributed sales climbed by 75% in 2021.

A brand’s video appears next to a product’s thumbnail in these ads, including its main image, title, reviews, price, and shipping information.

2) Demand Side Platform (DSP)

Amazon Demand side platform (DSP)

 

Source: Bobsled Marketing

Amazon DSP – demand-side platform that lets sellers buy advertisements (display, audio, video)  programmatically on and off Amazon to reach new and existing audiences.

Using the Amazon DSP, advertisers can access first-party data from Amazon. All searches, views, clicks, purchases, and reviews on Amazon are tracked. Amazon’s data tracking extends to their websites and apps (more on that below) and consumer devices like Fire TV and Amazon Echo.

The Amazon DSP uses first-party customer data for retargeting consumers based on demographics, location, interests, categories previously browsed, previous product views, previous purchases, and more.

Different types of DSP Ads: Static ads, dynamic ads, video ads, over-the-top (OTT) ads.

DSP placement:

    • Product Detail Pages on Desktop and Mobile

    • Customer Review Pages

    • Top of the Offer Listing Pages

3) Attract Customers with Promotional Banners and More!

The type of eCommerce marketing plan you select depends on your brand and how it is perceived. The first and foremost step is to market your brands and products in new locations. When it comes to selling internationally, cultural differences are critical.The Localization strategy aims to give shoppers from other countries an enjoyable online shopping experience tailored to their culture and language.

Depending on your target audience and region, you need to invest in marketing activities, whether that is using AMS, influencer marketing, or banner ads. 

Also, for Amazon Global selling, you can leverage Americans’ shopping craze on the cultural, festive season and offer deals and discounts on Black Friday, Thanksgiving, and Christmas.

Here is an example-

Holiday promotional ad banners

Source: Bloomberg

Amazon offers different marketplace-specific promotional tools that you can take advantage of to get the first sales in. These include Free Delivery, Money Off Promotions, 1-click Purchases, or Amazon Points that can be redeemed when buying other products from the same marketplace.

4) Amazon Store

Stores are custom multipage shopping destinations on Amazon for individual brands that let you showcase your brand story and product offering. They require no website experience to use, and it’s free. For more detailed information, read our guide on Amazon Store.

Amazon Brand store- USA

5) Enroll in Subscribe & Save feature

Amazon Subscribe & Save allows FBA sellers to offer discounted products in exchange for a long-term commitment from customers. This has substantially boosted sales and customer loyalty for many brands.

Subscribe and save feature

The Subscribe & Save feature allows Amazon customers to receive regular shipments of frequently used products. Subscribers will receive discounts and possibly free delivery on their Subscribe & Save orders, as determined by the individual merchants. Buyers can save 5% to 15% on the selling price by scheduling repeat delivery of their favourite items with Subscribe and Save

It’s Time to Go Global!

benefits of Amazon Global selling

Amazon Business touched $35 billion in its yearly sales in 2023.

The ability to meticulously strategize and budget for various expenses such as taxes, fees, fulfillment, customer service, and language translation can significantly impact the outcome of an expansion and lead to an increase in your brand revenue.

Amazon Global Selling allows you to focus on your products and sales. Now that you understand Amazon Global Selling and how to get your products in front of consumers worldwide. With Black Friday and Christmas just around the corner, reap the full benefits of the event season and allow Paxcom to help you succeed. It’s time to get started!

While some aspects of preparing your Amazon account to sell globally require patience and research, our experts are well-equipped to guide you through the process so you don’t have to worry about the marketplace’s complexities. We offer complete go-to-market support for the desired growth in the new potential markets, covering every aspect of the process, from acquiring the license for the region you want to sell to identifying the right partners in the market to promoting and selling your product.

Reach out to our eCommerce experts at info@Paxcom.net

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