How and why to export through Amazon?

Entering foreign markets is a logical step for any company with growth ambitions.  

More and more Estonian manufacturers and resellers are finding their way to Amazon - the world's largest e-commerce platform, opening doors to global markets.

Before starting to export through Amazon, many entrepreneurs are faced with questions - how does the platform work and what strategy will deliver the best results?

Why Amazon?

The answer is obvious - Amazon is by far the world's largest e-commerce platform and an important export channel for companies large and small. 37,6% of the total US e-commerce market, making it the firm market leader.

In addition, Amazon is also the largest e-commerce platform in Canada (41,5% of all Canadian e-commerce retail sales) and one of the most dominant platforms in the United Kingdom and Germany.

For companies looking to export to a target market without a physical presence, Amazon offers the perfect springboard. Products that sell well and receive positive reviews can attract the attention of larger retail chains or local distributors. Amazon also allows markets to be tested and new audiences to be found with less time and risk than traditional export activities. 

It's no wonder that more and more European companies - including Estonian ones - are focusing their growth strategy on the Amazon platform. This trend is particularly pronounced among small and medium sized manufacturers who want to make their products visible on the international market and increase sales. Exporting through Amazon is cheaper than opening your own store and branch abroad, which requires hiring staff, training, purchasing inventory, etc.. 

What are the advantages of exporting via Amazon?

One of the biggest advantages is, of course, access to mature markets with purchasing power, such as Germany, the United Kingdom and the United States. Amazon is active in these regions and allows businesses to enter new markets without complex logistics.

Amazon offers FBA (Fulfillment by Amazon) a service that makes the whole logistics process simple and smooth. A company can send its products to Amazon's warehouse, and Amazon takes care of everything from packing and shipping to customer service. This significantly reduces the day-to-day administrative burden and allows you to focus on growing sales.

Compared to opening a physical office abroad, exporting through Amazon is much more affordable and flexible. Start-up costs are lower and the risks are lower, making this channel particularly attractive for smaller manufacturers and start-up exporters.

In addition, Amazon, as a well-known and trusted brand, supports sales as if by itself - customers know the platform and trust the products it offers. Automated customer support and fast delivery create a positive shopping experience, which contributes to repeat business and brand trust.

For whom is Amazon the right platform?

Selling on Amazon is particularly suited to businesses that have. a physical product and a desire to grow internationally. Amazon is a good opportunity for expansion, both for small businesses looking to start exporting and for larger companies looking for an additional sales channel.

It's important that the product has a clear competitive advantage - be it unique design, quality, price or a solution to a specific problem. If a product fails to stand out, it may be invisible in the face of fierce competition.

Seven easy steps to Amazon sales

Getting started selling on Amazon can seem complicated at first glance, but when you break the process down into logical steps, the whole journey becomes clearer and more manageable. 

Here are seven key steps that any company planning to export should follow:

1. Market research. Successful selling starts with understanding whether there is demand for a product and how it differentiates from competitors. Good market research can help you avoid investing in products that don't sell.

2. Choosing the right market. It is important to choose the right Amazon market - for example, Amazon.de is well suited to European target markets, while Amazon.com opens the door to America. The right market choice increases the likelihood of success.

3. Account creation and brand registration. Create an Amazon Seller Central account and register your brand (Brand Registry) protects your intellectual property and gives you access to additional features. Registering a brand builds credibility and creates additional opportunities on Amazon.

4. Optimisation of product pages. Customer-appealing photos, eye-catching design, clear descriptions and the right SEO keywords will help your product stand out and increase sales. A well-optimised product page can multiply the conversion rate.

5. Sending goods (FBA) or selling from your own warehouse (FBM). Products when sending, you can choose between two models: FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant). FBA is mostly used, which means that Amazon takes care of customer service, order fulfilment and shipping. The FBM model is suitable for larger products or local delivery, for example, but FBA is generally preferred for smaller goods. FBA simplifies deliveries and improves the customer experience.

6. Setting up and managing advertising Amazon PPC (pay-per-click), ads help new products to gain visibility and increase sales faster. Without advertising, even a good product can go unnoticed.

7. Increasing sales and day-to-day management Selling successfully on Amazon requires constant monitoring, optimising and testing new strategies. Continuous testing and optimisation will lead to more solid growth and better rankings in search results.

Common mistakes to avoid

One of the most common mistakes is to start operating in the Amazon without having done thorough preparation. If the product is not suited to your chosen market, or if it goes unnoticed by competitors, sales results will be modest or even non-existent.

Problems can also arise if there are shortcomings in the product sheet - for example, lacking high-quality photos or a clearly differentiated value proposition.

Another critical barrier relates to regulation. Many categories, notably food, electronics and cosmetics, require the following certifications that are strictly controlled by Amazon. Their absence may hinder sales or even lead to the withdrawal of products.

How to get started?

If you have a physical product you want to export, Amazon is one of the best places to start.

Digihub can help you reach your target market quickly and thoughtfully. To get started, feel free to contact us!

Our services include market research, product brochure creation, ad setup and management, overall strategy, account verification, brand registration, design and day-to-day support. Read more about our services here or check out frequently asked questions.

If you're planning to export, start with Amazon - contact us and we'll get your products on the market with the right strategy from day one!