The EU market is growing rapidly, representing a prime opportunity for global sellers. At the recent Amazon Accelerate conference, experts Thomas Bell, Marc Carver, Praneeth Pentakota, and Giorgio Riboldi took a deep dive into how businesses can leverage Amazon’s new EU Accelerator program to expand efficiently. From data-driven insights to essential compliance steps, here’s a breakdown of how Amazon’s tools and support can enable sellers to enter the European Union (EU) market with confidence.
Why Expand to the EU? A Market with Massive Potential
With an online shopping population projected to exceed 586 million by 2027 and average e-commerce spending at nearly $2,000 per person, the EU presents an enormous opportunity for online sellers. Amazon’s footprint in the EU spans established markets in the United Kingdom, Germany, France, Italy, and Spain, along with emerging markets like the Netherlands, Sweden, Poland, and Belgium. For global sellers, this means expanded reach, a wider customer base, and a structured pathway to achieve significant growth.
The EU Accelerator: An Introduction to the Sell Globally Experience
Amazon’s Sell Globally experience, launching in October, is designed specifically for sellers aiming to expand into the EU market. This tool, available through Seller Central, offers insights into sales potential, projected costs, and regulatory requirements tailored to each EU market, helping businesses navigate essential decisions about where to begin and what to expect.
Key Features of the Sell Globally Experience:
- Sales Potential Insights: Sellers can view potential revenue estimates for each EU country. For instance, if Amazon projects $2.8 million in sales for a product category in Germany, sellers can strategically allocate resources.
- Market-specific Guidance: Recommendations on optimal stores to enter, based on sales projections, are complemented by a breakdown of associated costs.
- Comprehensive Cost Breakdown: This includes both variable costs, such as fulfillment fees and shipping, and one-time setup costs like tax registrations.
- Top Product Suggestions: The dashboard ranks products by sales potential in specific EU countries, helping sellers focus on high-demand items.
Navigating Regulatory Requirements: The GPSR
One of the most crucial aspects of selling in the EU involves adhering to regulatory standards, especially under the new General Product Safety Regulation (GPSR), which comes into effect on December 13, 2024. This regulation will require all products (except food and medicines) to meet specific safety standards before they can be sold in the EU.
Key GPSR Requirements:
- Responsible Person (RSP): Sellers must designate an EU-based responsible person to verify and document product safety compliance. This includes ensuring that products bear the correct type, batch, or serial number, alongside necessary manufacturer and safety information.
- Manufacturer Details: All product detail pages must display the manufacturer’s contact details to assure transparency and traceability.
- Safety Information: Mandatory safety information, like age restrictions or warnings, must be displayed prominently on product detail pages.
Amazon’s Compliance Tools: Simplifying the Process
Amazon supports sellers with built-in compliance tools accessible through the Account Health Dashboard. Sellers will find tasks guiding them on how to submit manufacturer and RSP information, upload safety documentation, and add high-resolution product images showing safety warnings. Compliance is streamlined so that sellers can focus on product quality and sales rather than regulatory hurdles.
Benefits of Amazon’s Compliance Tools:
- Streamlined Task Management: Each task on the Account Health Dashboard helps sellers meet GPSR requirements, from adding manufacturer details to uploading product safety information.
- Flexibility in Documentation: Sellers can submit either product images or safety documents, depending on availability.
- Automatic Checklist: The Sell Globally experience includes a checklist of regulatory tasks specific to each country, making it easy to see what’s required for compliance.
Logistics and Shipping: Amazon SEND and Global Logistics
Logistics can be a hurdle when entering new markets, but Amazon provides several options for efficient product transportation. Through Amazon Global Logistics for sea shipping from China to Europe and Seller Export & Deliver (SEND) for air shipping from the U.S. to the U.K. or Germany, sellers can streamline shipping and fulfillment, helping products reach EU customers faster.
Incentives for Sellers Expanding to the EU
To further encourage sellers, Amazon offers incentives such as a $25,000 credit to assist with setup costs and boost initial sales. Incentives are accessible within the Sell Globally experience, so sellers can view and apply them directly when planning their EU expansion.
Key Takeaways
The EU Accelerator program offers structured support to help sellers succeed in the EU market by simplifying complex requirements and providing a clear roadmap. Here’s how to make the most of this initiative:
- Use the Sell Globally Dashboard: Leverage insights to assess market potential and identify top products.
- Ensure Compliance with GPSR: Meet all regulatory requirements by December 13, 2024, for a smooth market entry.
- Optimize Shipping and Logistics: Utilize Amazon SEND and Global Logistics to manage cross-border shipping efficiently.
By taking advantage of Amazon’s EU Accelerator, sellers can expand strategically, tap into a high-spending market, and scale with confidence in compliance and logistics.
