How to sell into Europe from the USA.

If you are experiencing success with your products in the USA, there is a strong chance those products will do rather well over in Europe.

The European tax and supply chain can look daunting. At the time of writing, regulations are changing for registration and payment conditions for tax liabilities. Additionally language issues can play a significant role in the success or failure of a campaign,

Activ8 specialise in working with overseas sellers into the European arena of Amazon an supporting channels.

Selling Internationally On Amazon

Amazon make it very easy to get onto their systems and has an estimated 50 million registered Prime users. Whilst the market share is not as high as in the USA it is growing rapidly and set to expand into more countries.

We provide Seller Fulfilled Prime (SFP), Fulfilled by Amazon (FBA) and third party solutions to brands depending on their requirements. We have translation partners and a supply chain network that allows our clients to set up with full tax compliance.

The different tax laws across Europe are similar in many ways to the US sales tax and because we’re shipping goods across Europe everyday we can provide the best advice on navigating the channel and driving supply chain efficiencies.

You can of course go full steam ahead into Amazon itself but we work with our clients on strategic risk management to ensure that they have the best chance of success.

Change is continual

VAT laws are changing and reporting requirements. In 2018 in the UK, overseas sellers are now required to be VAT registered even if they are below the VAT threshold. France have changed their tax payment structures and Italy only recently changed their reporting periods.

Keeping abreast of these changes can leave clients with unexpected bills and we work to ensure full compliance as legislation changes. The positive is that there are opportunities as companies fall foul of these changes and are impacted on their bottom line.

Our focus is on getting our clients fully compliant before we look further into assisting with promotion and listing management.

Our team are here to help and deal with the European market everyday so are here to guide you through.

Decision Paralysis?

Our mission is to help businesses declutter and do the things they love. With such a fast paced period of change in consumer habits which can lead to a tangled mess where making a simple decision can look daunting. 

In the last weeks we have seen the closure of 100 Carphone Warehouse stores, 100 Marks & Spencer stores, Maplins, Toys "R" Us, Tesco Direct and nearly 30 Mothercare stores to name a few distinct to the UK market. Are they all going to Amazon? Can Amazon house all of those products and maintain a leading consumer experience of search?

Last week at Activ8 HQ we discussed how we help our clients who are procrastinating through decision paralysis to make the decision to use our services? Whether you are a start up not knowing where to begin or a company with an existing large channel presence, the changing environment can look challenging. You are not alone and many of the board rooms or founders we meet face the same challenges. Through our analytics we can highlight areas of opportunity, supply chain issues and various other factors that allow the possibility of a more strategic vision for the future. 

The one thing we focus on is simplicity. We read the line "if you can't measure it, you can't manage it" in a business book many years ago and adopted that approach. We built our service offering in light of the demands of new markets, new media platforms, new competitive threats and many more considerations. At our heart is a system of managing the platforms and working with partners of expertise when and if they are needed.

Whether you choose to take up our offer of free analytics or an initial discussion to identify your challenges, the goal is to map out a clear vision of the future. 

 

Do you know who is selling your products online?

As globalisation continues it has never been easier to sell your products on channels across the globe. Unfortunately it also means that it have never been easier for others to sell your products also.

Working with our clients we are able to provide them more information on where there products are selling, how many are selling and provide an indication of how much revenue they are leaving behind. Now for some brand owners they will feel like they know where they are selling products but around seven years ago we had a couple of examples.

We were doing reasonably well selling wholesale to a client in Japan. At the same time we were able to see that somebody was selling our products into Amazon USA and discounting our products. Through testing we were able to see that it was our Japanese wholesaler. They weren't developing our Japanese market but were piggy backing off the marketing work being carried out in the USA.

In a second example a boutique store was selling more than ten times what we thought they should be selling given their location. Some research and test purchases allowed us to see their sales on a marketplace site as heavily discounted prices. We were selling stock but it was severely impacting our ability to get larger retail on board. 

Our analytics suite that we have developed has allowed us to gain data from a multitude of platforms alongside client performance analytics to identify where our products and those of our clients are being sold. 

Small businesses can often be eager to get sales of their products out the door without truly understanding where those products will end up. In a recent client review we were able to show how their exciting distribution deal in France was actually all ending up in Amazon Vendor and being sold in the UK. Their UK direct to consumer revenue was dwindling and they couldn't understand why, who was selling to Amazon and why their marketing spend in the UK market was going down the pan. 

Clarity of who is selling your products is essential if you really want to build even a local operation. Unless you are only selling direct to consumer and on limited channels then we can help you get to know who is selling your products.

Marketplace data could gain you significantly more revenue.

"If you cannot measure it, you cannot manage it"

Are you getting the full picture on your data. We see many brands ignoring the data from Marketplaces as too complex, unattainable or not worth worrying about. We're telling some interesting stories to brands as we delve deeper into their data and showing how many of their sales are actually being derived from sites such as Amazon or eBay. How many wholesale sales in Germany are actually to UK customers as end users, how wholesale sales in Japan are affecting profits in North America have been a couple of the stories this week.

We have spent the first part of 2018 improving how we show our analytics to our clients. In the USA now it is estimated that 60% of consumers now go to Amazon rather than Google for their product searches. So in terms of your analytics that you are seeing, are you seeing the Amazon data alongside your traditional analytics? How are your eBay sales impacting your brand? What pricing are your resellers actually selling for when you're not looking?

Our new suite of data visualisation has been well received as we identify trends in conversions on Amazon against Google for specific campaigns. Drilling down into patterns of consumer journeys in relation to Marketplaces has been the stuff of guesswork and assumption to this point but our goal is to truly represent the source of sales.

It's not just sales though that we track.

  • We have saved our clients thousands of pounds on stock reconciliations with Amazon.
  • Identified global leaks in supply chain.
  • Streamlined marketplace processes for as much as 20% revenue increases.
  • Optimised SEO through A/B testing.
  • Reduced customer service questions by 50%
  • Reduced returns for one client by 30% through content and process changes.

If you would like a free consultation on data for your brand on Marketplaces across the world contact our team and you may just end up changing the way you do business. 

(One of 30 reports we run is below but we are only interest in showing brand owners what is relevant to their business)

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