Many people have decided to start a career as an online seller. This has often lead to success and to great businesses. Being your own boss, growing a business and profiting from the constant increase of online mail orders. Of course, finding the best market to start selling online is important. Here are a few hints for people who want to start selling online on the European Amazon market.
Where to start with your FBA Business?
Many Amazon sellers decide to choose one of Amazon’s FBA (Fulfilment by Amazon) types.
So, starting on Amazon Europe – which marketplace(s) is the best for the start? Maybe one of the most frequently asked questions when it comes to expanding to Europe.
Long story short: it depends. On the one hand on your product and on the other hand on the market(s) you are targeting.
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Start your online selling in UK or Germany
Usually, it makes sense to start in the UK or in Germany. Starting in the UK makes sense especially for sellers from other English-speaking countries, so you can start selling in Europe without having your listings translated and with a higher feeling of control over your supply chain.
BUT: you should keep an eye on the development of the Brexit negotiations
Why should I start as an online seller in Germany?
The big advantage of starting in Germany is the big size of the market. About 87 million people are living there and the purchasing power is big. Since it is more or less right in between all other European marketplaces, the delivery times to your customers are rather short and the earlier a customer gets his order, the more satisfied he is.
Positive reviews and customer satisfaction are also a must if you want to grow.
Advantages of small markets
Not only the “big” marketplaces in Europe are worth striving for. Starting in smaller marketplaces can bring several advantages as well, such as identifying niche opportunities or the lower need for inventory investment. That’s why you should always start with a proper market research.
Furthermore, if you want to expand across Europe and reach customers in different European countries, you will have to ask yourself if either the European Fulfillment Network (EFN), the Amazon Central Europe Programm or Pan European Fba (PAN EU) is the solution which fulfills your expectations. Check out our blog posts about the different fulfilment types. Here a very brief introduction on EFN and PAN-EU.
European Fulfilment Network (EFN) vs. PAN-European FBA
Here is a short comparison of the European Fulfilment Network (EFN) and PAN-European Fulfilment by Amazon (PAN-EU):
|European Fulfilment Network (EFN)||PAN-European FBA|
|Storing in one of Amazon’s 7 possible marketplaces within the EU||Storing in up to all 7 European Amazon marketplaces |
|Just one VAT number required – in the country |
you store your goods in a Fulfillment Center
|VAT number required in every country you are storing good in a Fulfillment Center|
|Delivery to customers abroad takes more time||Fastest delivery to all customers within Europe|
|Higher cross-border fees||You always pay the local fulfillment costs|
|Listing on all marketplaces with one account||Listing on all marketplaces and due to Prime higher |
|Easy inventory management||Even easier inventory management: stock can be |
calculated more efficient
|Easier to manage||More complex but more profit|
Starting to become an online seller in Europe or expanding your Amazon business is always a great opportunity. The e-commerce market is growing, and growing while the purchasing power is on a constant high. With Amazon’s FBA services and our tax solutions we can almost automate all processes and get your business to the next level.