The largest online retailer in the world, Amazon, has dominated the e-commerce industry for more than 20 years thanks, in part, to Amazon Marketplaces.
By using Amazon Marketplaces, independent merchants can reach Amazon’s consumer base, and Amazon can increase the selection on its website without having to buy more inventory.
In this piece, we will take a look at what the Amazon Marketplace is, how it works, and the different variations of it.
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Amazon Marketplaces Review
What is Amazon marketplace?
The third-party sellers market that is incorporated into the Amazon platform is called Amazon Marketplace. Customers can choose from a much greater variety of products from thousands of other retailers here. The distinction lies in the direction of the profits. All Amazon proceeds go to Amazon.com. Amazon and the third-party seller split the income on Amazon Marketplace.
Amazon offers a platform for third-party vendors to connect with millions of customers worldwide through its marketplace in addition to selling its own goods. With more than 300 million active customers and over 2.5 million active sellers, Amazon Marketplace has developed into a key platform for companies to connect with customers around the world and expand their online presence.
You have two alternatives for selling on Amazon as third-party sellers: Amazon Vendor Central and Amazon Seller Central. Sellers can offer their merchandise to Amazon at wholesale costs by using Amazon Vendor Central. Then, Amazon sells these and pockets the proceeds. Manufacturers and wholesalers typically participate in Amazon Vendor Central, which is an invitation-only service.
Amazon operates storefronts all around the world. Amazon’s four American and nine European storefronts alone cater to millions of customers in 28 different nations. In addition to international markets, Amazon operates numerous stores throughout the Asia-Pacific and Middle East regions. And each year, Amazon opens new international marketplaces in other parts of the world. So, it can give your products a global audience.
Who Founded Amazon Marketplaces ?
Amazon, which Jeff Bezos founded in the hopes of becoming the global one-stop shop for books now offers a variety of products.
In 2000, Amazon introduced the third-party marketplace, which enables everyone to sell their products on the website, including established companies and tiny enterprises as sellers that run out of their garage. Since then, it has expanded to include millions of sellers and now makes up around 60% of Amazon’s total retail sales.
Since Amazon launched its online store as one of the first e-commerce platforms in the US, thousands of companies have done it too.
Amazon operates 20 marketplaces across the globe, all of which let independent sellers list and sell goods. Amazon sells more than 350 million products through these marketplaces.
The Global Amazon Marketplaces
To provide you more knowledge about selling worldwide, we will delve into each Amazon international marketplace and examine the statistics, the quantity of sellers, and other factors.
The amazon international marketplaces are divided into regions, and each area contains a group of nations and their separate multiple amazon marketplaces. Let’s examine the areas and all the multiple amazon marketplaces and nations that make them up.
AMAZON United States
The first Amazon marketplace was established in the US in 1994 as a platform for the sale of books. In terms of the number of merchants there and the volume of traffic the marketplace receives, it is the most established.
Being the first marketplace to launch all of Amazon’s ad goods, Amazon.com is a great place for any new seller or brand owner to start. The major drawback is that it’s fiercely competitive, making it challenging to rank on Page One if you’re a new vendor.
AMAZON Canada (amazon.ca)
Amazon’s Canada marketplace is frequently the next obvious step for a seller or brand owner who only sells on the US marketplace. Despite having a population that is only 10% that of the US, Canada has significantly less competition.
You will have to deal with importing merchandise into Canada if you register to sell products but thanks to the North American Remote Fulfillment program(NARF), products are delivered to Canada from the US.
Some claim that moving merchandise to Canada will yield higher profits, but given how easy it is for Amazon to handle shipping, taxes, and tariffs, NARF is the obvious choice for many firms.
AMAZON Mexico (amazon.mx)
Although buyers from Canada and Mexico can view your listings with a North American marketplaces unified account too, many buyers choose to purchase through their local marketplace. Having your .mx listings only through your Amazon North America unified account is undoubtedly simpler, and since you can edit the listing copy, you can translate it into Spanish.
You should use only qualified translation providers because Google Translate sometimes falls short of the mark. The ability to ship things to FBA in Mexico, which minimizes delays and damaged packages, is another advantage of having a genuine Amazon.mx account.
AMAZON Brazil (amazon.com.br)
Amazon began operations in 2012 in Brazil, a sizable nation. Although the market has expanded significantly in the sixth most populated nation in the world, there are still a few factors to take into account before launching on Amazon.br.
First, customs duties are not included in the extremely high import taxes. The majority of Brazilians use their phones and credit cards to make purchases on Amazon.com.br. The most well-liked subcategories are beauty, entertainment, fashion, and fashion accessories.
AMAZON United Kingdom (amazon.co.uk)
Prior to January 1, 2021, the UK marketplace was a part of the Amazon Europe program with Amazon. You could sell on all European marketplaces while keeping your inventory in one nation, and many sellers and brand owners selected the UK.
Following Brexit, the UK has left the EU and is not part of European marketplace for international selling on Amazon. With many cross-border vendors and brand owners selling internationally across all the European marketplaces and delivering orders from the UK, the biggest European Amazon marketplace, this caused a significant upheaval.
Having a dedicated.co.uk presence is required since sellers and brand owners cannot store their products in UK FBA warehouse operations to sell abroad. As a result, the UK needed a separate VAT register.
AMAZON Germany (amazon.de)
One of the biggest Amazon marketplaces in Europe is the one that was established in Germany in 1998. The German marketplace is accustomed to American marketing and communication techniques, but remember that your product listings and product instructions must be in German.
Even though Amazon Germany is one of the first markets that businesses expand to, demand is great and there is little to no competition. Around 80% of Germans use Amazon to make purchases.
German customers are not huge fans of flowery listings and ostentatious marketing language, therefore use qualified translation services with native German speakers to translate and localize your listings successfully.
AMAZON Spain (amazon.es)
The Amazon spain marketplace, which was introduced in 2011, is a modest one. The VAT registration process in Spain is reportedly the most challenging of all the European markets. Because Spanish culture is very regionalized, you should try to comprehend the various traditions in various regions of Spain before traveling there
Spanish translations of the listings are necessary. In Spain, the most popular online shopping category as of 2019 was fashion, unlike most European markets where consumer electronics are the most common category.
AMAZON France (amazon.fr)
The third-largest European marketplace after the UK and Germany is Amazon’s French marketplace, which was launched in 2000. French buyers are particularly picky about the products they purchase, and all listings, labeling, and packaging must be in French.
The only way to succeed on Amazon.fr is to thoroughly localize your products and conduct research on French consumer behavior. Belgian customers can shop on Amazon.fr.
AMAZON Italy (amazon.it)
Despite being smaller than most, the Amazon Italy marketplace, which was established in 2010, offers a significant market for goods created in Italy. In fact, a separate “Made in Italy” in amazon’s global marketplaces now exists. Of course, listings must be translated into Italian.
A few things to keep in mind: Italian online buyers typically take their time making decisions, comparing products and even using their shopping cards to do so. They are, however, patient and don’t demand expedited shipping as long as it’s free or really inexpensive.
Amazon has little competition, and more people are shopping on mobile devices.
AMAZON Netherlands (amazon.nl)
When Amazon Holland first opened its doors in 2014, it solely offered Kindle readers and ebooks. Dutch customers no longer had to shop on Amazon Netherlands after a larger Amazon marketplace debuted in March 2020. Despite the lesser volume, many experts advise beginning in the Netherlands since Pan EU fulfillment may be simpler in the less crowded environment. It is advisable to translate listings into Dutch.
AMAZON Poland (amazon.pl)
Amazon’s Polish marketplace, which was introduced in March 2021, has a lot to offer international vendors. Fashion brands typically perform exceptionally well on Amazon.pl. Low delivery costs, free returns, low prices, and promotional codes are sought after by Polish consumers.
Obviously, listings need to be translated, despite the fact that many Polish customers used Amazon.de before the Polish version of the marketplace launched. Be aware that there are two e-commerce markets in Poland: Allegro, which is the more popular one, and Ceneo, which you should examine before opening your Amazon.pl site. Despite being a member of the EU, Poland uses the Polish Zloty as its official currency.
AMAZON Sweden (amazon.se)
In 2020, Amazon opened its Swedish marketplace to a populace that was already technologically proficient. In order to create a “fully connected Sweden,” the Swedish government has made it easier for citizens to use the internet. This, combined with Sweden’s booming economy, makes Sweden an obvious candidate for a new Amazon marketplace. The major categories in Sweden are fashion and consumer electronics, hence listings must be translated.
AMAZON Turkey (amazon.com.tr)
2018 saw the creation of Amazon’s Turkish marketplace, while 2020 saw the introduction of Prime. Customers could purchase on a translated version of Amazon.de before Amazon Turkey launched. It’s crucial to conduct thorough study before debuting on Amazon.tr.
In addition to the typical Home and Kitchen and Consumer Electronics categories, Shoes and Clothing and Personal Care/Cosmetics are hot categories. Also, it is advisable to optimize for desktop or tablet users rather than mobile users since Turkish consumers frequently make purchases on these devices.
AMAZON Japan (amazon.co.jp)
Amazon Japan, which launched at the end of October 2000, is the third-largest Amazon marketplace globally. Although there is a lot of opportunity, competition is a major consideration when thinking about growing into this sector. Hence, expert translation services will be required.
In order to establish customer trust in your business and make your listings appealing, you should choose a firm that employs native Japanese speakers and writers because the Japanese language is intricate and very contextual. It makes sense to have a presence in Japan given that 71% of Japanese consumers make their purchases online.
AMAZON India (amazon.in)
Amazon’s Indian marketplace has experienced ups and downs since its launch in June 2013. Amazon India reported that 150,000 new merchants had entered the marketplace in December 2020, but due to shutdown in April of that same year, the numbers sharply decreased. But, India is predicted to have 850 million internet users by 2030 and has 620 million active users today, so as the economy grows, so should the prospects on Amazon.in.
Consumer Electronics, Baby Products, and Apparel are all very popular categories, thus success depends on professionally translated listings and strong advertising tactics. Be aware that to take part in FBA in India, you’ll require a third-party logistics service.
AMAZON Australia (amazon.com.au)
Australian marketplace opened a store in 2017. Amazon.com.au was anticipated to be a huge success, however it didn’t expand as quickly as many analysts expected.
In Australia, Amazon is the second-most popular online marketplace behind eBay. Nonetheless, the Amazon Australia sellers market saw a growth of 52% in average monthly users and a 3.8% gain in sales in 2019. Now that customers from New Zealand are using Amazon.com.au, growth should continue.
AMAZON Singapore (amazon.sg)
In October 2019, Amazon Singapore marketplace opened with nearly 500 vendors. Despite having a small population, it has had FBA since the very beginning. “Amazon.sg is an English-language experience, removing the need for translations,” according to Amazon. On the Singapore marketplace, not all categories are available, and in the ones that are such as Automobile and Film & Movies, approval is needed.
AMAZON United Arab Emirates (amazon.ae)
There are no language restrictions on the Amazon marketplace in the United Arab Emirates. Your listings don’t need to be translated from English. Consumer
electronics are the site’s most popular category since its launch in 2019, however due to the wealthy population of the nation, many luxury products also succeed there. On the.ae marketplace, where there are already many merchants, it is crucial to market your brand.
AMAZON Saudi Arabia (amazon.sa)
Amazon’s Saudi Arabian marketplace, which debuted in 2020, is a renamed version of Souq.com. Saudi Arabia has a high internet usage rate and is among the 20 richest nations in terms of purchasing power.
Although you can browse Seller Central in English and have your English advertisements, it would be a great idea to translate your advertisements into Arabic. Sellers who previously had accounts on Souq were capable of transferring them to Amazon.
AMAZON Egypt (amazon.eg)
On September 1, 2021, Amazon.eg went live as the company’s 20th international marketplace. Sellers were able to set up their Amazon.eg accounts using their Souq login information because Amazon was the last local Souq business.
Although though Prime is still unavailable, Amazon Egypt initially operated FBA in the smaller market. Amazon Egypt is a smaller market that competes with Noom and Jumia, but industry insiders are confident that Amazon will dominate the market.
Amazon China (amazon.cn)
It is only open to Chinese sellers.
How does Amazon Marketplace work?
Businesses can post and sell their goods on the Amazon website alongside Amazon’s own merchandise thanks to Amazon Marketplace. Sellers have the option of using Amazon’s Fulfillment by Amazon (FBA) service, which handles storage, shipping, and customer care for a fee, or completing orders themselves. If you are interested in starting an Amazon FBA service, take a look at this list of the Best Amazon FBA Courses For 2023.
Sellers must pay a referral fee and, in certain cases, a closing fee on each sale in order to access Amazon’s enormous customer base.
On its marketplace, Amazon clearly distinguishes between two categories of traders:
- Vendors: These businesses, which are often huge, sell their goods to Amazon’s retail division, which then sells them to customers.
- Sellers: Companies who use Amazon as a marketplace to offer their products directly to customers under their own brand names.
The majority of companies who trade on Amazon are sellers, meaning that they market their products to customers rather than to Amazon itself.
In order to handle storage and shipping to more than 100 nations and regions throughout the world, Amazon operates more than 175 fulfillment centers (covering a massive 150 million square feet of space.)
The majority of Amazon sellers’ (47%) homes are in the United States, followed by Canada (9%), the United Kingdom (6%), and India (4%).
The majority of times, customers will visit the Amazon store of their choosing, open their wallets, and buy the goods that catch their attention. A merchant who opts for Fulfillment by Amazon (FBA) will already have some items stored in Amazon warehouses. In that instance, wherever the consumer is, Amazon will arrange shipment and deliver the goods (with some exceptions, like Russia currently).
Assume, however, that a company chooses Fulfillment by Merchant instead than FBA and does so (FBM). In such event, regardless of which Amazon marketplace the order originates from, they will be in charge of choosing, packing, and shipping orders.
How to join Amazon marketplaces
Step 1: Choose the Markets and Products You Wish to Sell
Choosing what things to offer on the platform is the first stage, regardless of whether you sell abroad or only in your native country.
You should carefully consider whether selling on Amazon will be your best option. Most of the time, you probably shouldn’t rely on Amazon exclusively to sell your goods because on Amazon, there might be a lot of competition and spreading your sales across several channels is more beneficial. Use Amazon as your primary channel, but also consider expanding your sales possibilities.
Researching relevant things to sell on Amazon should take some time. If you try to sell the incorrect kinds of products, you may encounter fierce competition given that there are more than 2 million third-party vendors on the marketplace already, not to mention the marketing powerhouse that is Amazon.
The most well-liked product categories are:
- Home and Kitchen Personal Care and Beauty
- Games and Toys
- Jewelry, Shoes, and Apparel
- Health, domestic, and infant care
- Outdoors and Sports
- Sewing, Crafts, and Art Books
- Dining and Kitchen
Your decision-making may also be influenced by profitability. Amongst various product categories, the typical profit margin varies considerably.
The target market for your products should be taken into account when choosing which markets to enter. Does their location affect whether or not they could be interested in your products? Listing your pork items on Amazon Saudi, for example, serves no purpose.
Moreover, logistics may be important, especially if you chose Fulfillment by Merchant (FBM) over Fulfillment by Amazon (FBA).
Shipping fragile goods may be difficult for you, and if too many of your deliveries are damaged, this may harm your reputation and clientele. Also, you might discover that it is not cost-effective for your products to be transported to some of the farther markets.
You should think about whether your company can function utilizing the local language before growing to an Amazon international marketplace. If you can’t comprehend what potential consumers are saying, it will be tough for you to deliver good customer service.
If you use Amazon’s Fulfillment centers, this is a less significant aspect. For sales in the European and Japanese markets, Amazon offers the Seller Central Language Switcher.
Step 2: Register Your Goods and List Them
Once you’ve made the decision to sell internationally on Amazon, you must first sign up as a seller before adding your products to each international marketplace in which you’ve decided to trade.
Where appropriate, you will need to translate your listings. To assist you in doing this, Amazon offers the Build International Listings tool (BIL), which allows you to upload your offerings and synchronize pricing across several marketplaces. BIL maintains pricing offers throughout the markets for you using automated updates based on your rules.
On every marketplace where you sell, you will require a fresh seller account. Since you only need to register once to trade in the Amazon North America stores, this is not as difficult as it sounds.
There are various requirements that are unique to each country’s Amazon marketplace. For instance, you must conduct a step-by-step online interview when you register to sell in the USA to find out whether you need to file a W-9 form (as a U.S. taxpayer) or a W-8BEN (as a non-U.S. taxpayer).
Just the monthly fees associated with the marketplace wherein you initially registered to sell are due if you are a Pro Seller.
According to the new marketplaces, there may be variations in the requirements for product listings, thus it’s crucial to review regional regulations. Examples include the need that listings be written in the language of the Amazon marketplace where you plan to first sell products. With your unified account, the Create International Listings (BIL) tool enables you to create and edit listings on several Amazon marketplaces.
If you are the owner of a brand, register it on the Amazon Brand Registry to safeguard your registered trademarks there and give customers a genuine and reliable experience.
STEP 3: Ship and complete your orders
Your choice of delivery method— Fulfillment by Merchant (FBM), in which you handle customer delivery—or Fulfillment by Amazon (FBA), in which you delegate logistics to Amazon—must be made early on.
When a customer buys something, you save it with FBS/FBM and send it to them. If you choose FBA, however, you send your goods to Amazon’s fulfillment centers, and when something sells, they take care of the shipment.
Because Amazon has fulfillment centers all throughout the world, if you sell on overseas markets, Fulfillment by Amazon will typically get your products to the client considerably faster. But, the costs are obviously far larger. Yet, it goes without saying that this service has substantially higher prices.
FBS/FBM, on the other hand, offers you a lot more flexibility for less money. This may be the ideal option for you if you already have a shipping table, boxes, packing supplies, and tools, as well as the time to complete it.
You must take into account items like comparable international shipping costs, customs charges, and taxes when dealing with global marketplaces.
Step 4: Oversee Your Amazon Business
You must comprehend your duties in the import/export process before expanding your firm to an Amazon marketplace outside of your native country. Most vendors delegate this task to a logistical service provider, like a customs broker or a freight forwarder.
For sellers outside of India and China, Amazon.in and Amazon.cn offer specific registration and selling criteria.
It is ideal to have customer care representatives who are knowledgeable about your products, are able to react to client e-mails in the local dialect swiftly (within 24 hours), are aware of where a customer’s merchandise sits and when it’s going to be delivered. This could be particularly difficult for small enterprises that serve clients in several time zones.
If you opt for FBA, Amazon offers on your behalf 24-hour customer service in the native tongue of the pertinent marketplace.
If you aren’t using FBA, Amazon mandates that you either give customers a local return address in the nation where their Amazon marketplace website is located or offer them free shipping for returns.
By enabling you to integrate existing North American, European, and Japanese merchant accounts with Accounts Linked(Amazon unified account) and manage your sales on one page, Amazon has lately made things simpler for sellers.
It is clear that integrating new seller account and central accounts will save money. Instead of paying $39.99 for the US and €39 for Europe, Amazon would just charge you $39.99 each month (for the Professional selling plan) if your US and EU accounts were combined. Amazon allows this in a few limited circumstances and has suspended more merchants for doing so (within a single nation) than for any other offense.
Pros of Amazon marketplace
- Added Sales
- Expansion internationally
- Minimal marketing expenses
- No stock
Cons of Amazon marketplace
- There is a lot of competition
- Risk of counterfeit products and unauthorized sellers.
- Fees for sales
- Managing orders
- complex stream of data
What are Amazon merchants’ typical monthly sales?
The majority of Amazon sellers generate sales of at least $1,000 per month, and some super-sellers generate sales of over $100,000 each month.
45% of Amazon sellers earn between $1,000 and $25,000 each month, which translates to $12,001 and $300,000 in revenue annually.
25% generates between $25,000 and $250,000 per month, or $300,000 and $3,000,000 annually.
17% of retailers generate monthly sales of less than $500.
How much profit are Amazon merchants making?
The better, the bigger the profit margin. Small businesses frequently struggle in their first several years to become profitable, yet Amazon SMB sellers see strong profit margins.
52 percent of sellers anticipate profit margins of at least 10%.
27% predict profit margins of more than 20%.
Nonetheless, 14% of respondents stated their companies are not yet profitable, and 8% were unsure not yet profitable, and 8% were unsure.
2. How long does it take to really start selling and making money on Amazon?
The majority of respondents (64%) stated that they became profitable during the first year of selling.
- Profits within three months: 22%
- Profit within three to six months: 13%
- Profits in the next six to one year: 19%
- Profits in the first two years: 10%
- Profits within two years or less: 3%
- Uncertainty: 7%
How much money is required to start an Amazon business?
The perception that selling on Amazon will be excessively expensive is one of the major obstacles for new sellers. Nevertheless, it need not be money; it might also be time, the information you need to make informed decisions, or even just the determination to achieve.
In actuality, 31% of Amazon sellers started their companies with less than $1,000 in startup costs. The majority of vendors (67%) started selling on Amazon for less than $5,000 overall.
- Less than $500 was spent by sellers: 17%
- $500-1,000: 12%
- $1,001-2,500: 15%
- $2,501-5,000: 21%
- $5,001-10,000: 13%
- $10,000 or more: 19%
- Uncertainty: 1%
For companies looking to expand their online presence and reach a global market, Amazon Marketplace has emerged as a key avenue.
While selling on Amazon has its obstacles, it can also have major advantages for companies that can use the site wisely. Businesses may increase their reach and boost sales by utilizing Amazon’s consumer base and brand recognition, making Amazon Marketplace an important instrument for e-commerce success.
Knowledgeable Amazon sellers who can distinguish themselves from rivals and expand their international selling to internationally, include those who can determine: Which online store to start selling on, Which online store to next expand to, How Amazon markets differ from each other, and The dynamics of foreign and worldwide selling.
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David Fortune has been the editor NoBSIMReviews.com since 2019. He is an expert at writing content on stock advisory services, side hustles, reviewing online business opportunities and many more topics. You can learn more about David on our about us page.