Capturing International Selling Opportunities with Amazong-ec2.images-amazon.com/images/G/02/Webinar/20130911GlobalSe… · commercial invoice 2.Ship product to port Amazon FC 3

© 2013 Amazon.com, Inc. or its affiliates. All rights reserved.

Capturing International Selling Opportunities with Amazon

September 2013


Agenda

› The International Business Opportunity

› Key considerations to selling internationally

› How Amazon helps grow your EU business

› Country Specific Requirements


Amazon’s Business Worldwide

Amazon has online marketplaces in ten countries, enabling third-party sellers to reach buying customers both locally and globally.

*89 FCs as of 12/21/12

*


Marketplace Expansion Opportunity

As Amazon has expanded globally, its customer base and third-party seller base have grown rapidly as well.

Source: 2007-2013 Amazon Quarterly Earnings Announcements


The Seller Journey to Global Expansion

1. The Seller joins US marketplace, and sells locally to Amazon.com customers.

2. The Seller joins Fulfilment by Amazon (FBA). Access to Prime (free & fast 2-day shipping) and Super Saver Shipping

3. The Seller enables FBA Export. Customers outside the US can purchase, and Amazon handles the export details. No extra cost to the Seller.

4. The Seller opens UK Marketplace and sells to Amazon.co.uk customers. Seller can send bulk inventory to FBA in the UK to fulfill locally.

5. The Seller enables EU FBA Export. Customers outside the UK (namely 26 countries in the EU) can purchase, and Amazon handles the export details. No extra cost to the Seller.

6. The Seller adds European Fulfilment Network and fulfills orders from other Amazon EU marketplaces from its UK inventory.


Amazon’s Global Selling Services

› Open New Marketplaces – You can list your products on multiple Amazon marketplaces to reach millions of new customers.

› Use FBA to Fulfill Locally – With Fulfilment by Amazon (FBA) you can send inventory into Amazon's world-class fulfilment Centers around the world, and we will fulfill orders locally.

› Use FBA to Export from your Home Marketplace – with FBA Export you can sell from your local inventory to international customers visiting your Amazon listings (US and EU), with no extra charge to you. Amazon manages the export process so you don’t have to.

› Use EFN to Fulfill across the EU- FBA gives you access to the European Fulfilment Network. With EFN you can fulfill orders placed on any EU Marketplace using your local (UK) inventory.


Agenda


› Key considerations to selling internationally

› Determining where and what to sell

› Fulfilling International Orders

› Language Requirements – Listings & Customer Service




What to sell where

1 Language considerations: Prioritize marketplaces that support languages you are most comfortable operating in. UK is a natural transition for US Sellers whose primary language is English

2 Selling Potential: • Check that the marketplace supports your product category • Check that products are suitable for the marketplace—for

example that they adhere to product compliance warning. • Research whether products similar to yours are being offered • Determine whether the offer prices are compelling for you to

enter the marketplace – consider landed costs of your products when thinking about your profitability

3 Be Original: Do you bring a unique offering to the marketplace?


Fulfilling your Amazon orders

As a Seller, you can fulfill orders yourself or you can let Amazon fulfill your orders Considerations:

Seller Fulfilled Orders Amazon Fulfilled Orders (FBA)

Lead times can vary based on mode of transportation

Lead times can be reduced by fulfilling locally with FBA

Higher shipping costs as you ship individual packages to customers internationally

Seller can reduce shipping costs by leveraging Amazon preferred carrier services that can reduce freight rates based on mode and destination

Seller provides local language customer support

FBA provides local language customer support

Seller needs to provide a local customer returns address.

Amazon handles returns.

Lead Times

Shipping Costs

Customer Support

CustomerReturns


Importing inventory to an Amazon FC

When inventory is located in a different country than the Amazon FC, you will need to import your products into the destination country.

Export

1. Prepare commercial invoice

2. Ship product to port

3. Clear export customs

Ship Import Transport

1. Ship products to destination country

2. Transport via air, ocean or ground

1. Clear import customs

1. Load products onto carrier for transport to Amazon FC

Note: It is often much easier to hire a customs broker or a freight forwarder to handle the export, import and transportation process for you* Amazon will not act as Exporter or Importer of Record.

Source: Amazon Global Selling Manual

*Amazon cannot make these arrangements for you

Overseas Brokerage and Transportation Process Overview


It is often much easier to hire a logistics provider such as a customs broker or a freight forwarder to handle all of the export and import process for you.

Arrange shipment with a freight forwarder

1 • Exporter of Record (EOR) – generally the shipper is the exporter of record; this can be the Seller but it can

also be the Seller’s vendor if the Seller is sourcing from a third country other than their own country of origin. Sellers must consider their vendor terms and ultimate country of origin when considering entry to a new market.

• Generally you will need a VAT number to complete the commercial invoice to import products into the EU as well as to sell in the EU.

• Importer of Record (IOR) – is responsible for ensuring the shipment arrives at destination country, filing legally required documents and paying import duties and taxes.

2 Ultimate Consignee – the actual intended recipient of the shipment for shipments in the US

3 Legal Documents: • Power of Attorney – enables the freight forwarder or customs broker to act as your agent to get your

inventory moved through the customs process • Credit Application – The customs broker may ask you to pay cash in advance • Terms and Conditions – The customs broker should spell out for you so that you know and understand who is

responsible for the goods at every step of the process

Information you will need to provide your customs broker:

Recommended customs brokers:

Shapiro: www.shapiro.com

UPS: http://www.ups.com/content/gb/en/bussol/browse/customs_brokerage.html

http://www.shapiro.com/

http://www.ups.com/content/gb/en/bussol/browse/customs_brokerage.html


Value Added Tax (VAT)

What is VAT?

› Value Added Tax (VAT) is a consumption tax and may be assessed on the value of goods in the EU

What VAT obligations do I need to be aware of?

› If you import products into the EU, you may be obliged to pay VAT the moment the goods enter the EU

› If you transfer your own goods from one EU country to another or if FBA transfers your goods from an EU FC into another country where your products were stored, the transfer may also be treated as a transaction subject to VAT

Consult a Tax Advisor that can guide you through the VAT Process

› Please consult your tax advisor for information regarding import and VAT obligations

Useful Links:

EU Taxation: http://ec.europa.eu/taxation_customs/taxation/vat/

UK: https://www.gov.uk/vat-registration

http://www.hmrc.gov.uk/vat/

Source: Amazon Global Selling Manual

http://ec.europa.eu/taxation_customs/taxation/vat/

https://www.gov.uk/vat-registration






Language requirements

Listings

› Amazon requires that your listings be written in the local marketplace language.

› If a listing for the product you are trying to sell in the local marketplace already exists,

you may be able to create an offer on that product.

› If your product is unique to the marketplace where you are trying to create an offer,

you may need to translate the product details in order to create a listing in that

marketplace.

Customer Service

› Customer Service needs to be provided in the language of the marketplace where you are selling your products.

› If you are using FBA, we will provide local language customer support on your behalf.


Agenda


› Considerations to selling internationally


› The European Account

› Build International Listings

› FBA

› The European fulfilment Network



List your offers on any of Amazon’s EU Marketplaces using the European Account - from a single Seller Central Account.

Global Buyers

The European Account


Expand offers internationally

Access the tool “Expand Offers Internationally”.

How to list your offers in one marketplace (your home marketplace e.g. UK) on a different, additional marketplace (target marketplaces e.g. DE).

The tool will create a listing file for products

in your inventory if they already exist in the target marketplace.

Personalize the file, with local prices,

and upload it in the target marketplace.

Your products are now on sale on the target

marketplace. The quantity in stock is synchronised across marketplaces.

Products not listed by the tool do not exist yet and you

need to create a new local product page.

Pick the target marketplace in your

account top drop-down menu and go to Add a Product or download a

local inventory template.

Describe the products in the local language. Use the same EAN/UPC and

SKUs as on Amazon.co.uk, to list in

the other European marketplaces so that

stock can be synchronised.

Your products are now on sale on the target

marketplace. The quantity in stock is synchronised across marketplaces.

https://sellercentral-europe.amazon.com/gp/global-selling/expand-offers/ref=ag_xx_cont_200942970

https://sellercentral-europe.amazon.com/gp/item-manager/ezdpc/uploadInventory.html

https://sellercentral-europe.amazon.com/gp/ezdpc-gui/start.html/

https://sellercentral-europe.amazon.com/gp/ezdpc-gui/start.html/

https://sellercentral-europe.amazon.com/gp/help/help-popup.html?ie=UTF8&itemID=1641

https://sellercentral-europe.amazon.com/gp/help/help-popup.html?ie=UTF8&itemID=1641


fulfilment by Amazon (FBA)

Benefits

› Make Money. Your items are eligible for Prime and Super Saver Delivery, so you reach a premium audience to help you sell more, faster.

› Grow Fast. FBA provides the scale, from single items to full truckloads. We handle storage, shipping and customer service* so you can focus on making sales.

› Delight Your Customers. FBA lets you give customers what they love – fast shipping – with a trusted experience

FBA allows sellers to easily leverage Amazon’s world-class fulfilment Centers and customer support - you send it to Amazon, and we handle it.

* Not applicable for multi-channel fulfilment


How FBA Works

1. Upload product list. Send your full or partial inventory directly to Amazon. No additional subscription fee to join FBA.

2. Amazon will store and manage your inventory in its fulfilment

Centers using a unique, optimized storage system. You own your

inventory, and pay storage fees for items stored.

3. Customers view and purchase your products – on-Amazon or off. FBA products on Amazon are eligible for Prime and FREE Super Saver Delivery!

4. Amazon will pick, pack and ship your orders directly to customers. You pay a fulfilment fee for items shipped (based on number of items and weight).

5. Amazon provides customer service to buyers for items sold on Amazon, for a seamless purchasing experience.


Reminder about what EFN is

Benefits

› Make Money. Give EU customers what they love - Amazon-fulfilled shipping. This helps you sell more, faster.

› Grow Fast Internationally. EFN helps you scale across all of Amazon’s EU marketplaces using a single pool of inventory.

› Delight Customers. EFN lets you give customers what they love – fast shipping – with a trusted experience.

As an FBA Seller, EFN allows you to easily leverage Amazon’s world-class fulfilment Centers across the EU and customer support - you send it to your local (UK) Amazon FC, and we handle fulfilment for your orders placed on any EU marketplace.

The European fulfilment Network (EFN)


Reminder about what EFN is

UK Buyer

DE Buyer

IT Buyer

EU Buyers

FR Buyer

UK Seller International Sellers

ES Buyer

How EFN works

As part of the European Account, FBA sellers can:

› Store their inventory in their home marketplace’s FCs

› Fulfil orders coming from other Amazon EU marketplaces

You can store your FBA inventory in your home marketplace.

You still need to create offers in the local language and currency for each

marketplace or your FBA stock will not be offered for sale on the other marketplaces


› There will be an additional EFN flat fee for each unit shipped to other marketplaces

› FBA fee of the marketplace of destination will apply

› Example (fees as of 22nd May 2013)

DE Buyer

Item Price : 29.99 Euros

Selling on Amazon.de fees: -4.50 Euros

German FBA Fulfilment fees: -3.10 Euros

German EFN Fee for a product fulfilled from the UK: -2.10 Euros

Download the FBA Rate Cards of the marketplaces you want to sell in (and not of your

home marketplace!) to see the applicable FBA and EFN Fees

Pricing – “FBA” with “EFN”

http://services.amazon.co.uk/services/fulfilment-by-amazon/pricing/


Agenda


› Considerations to selling internationally




Need to know

* The account is in Euro and the bank is located in one of those countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the

Netherlands, Portugal, Slovakia, Slovenia, and Spain.

› Pro sellers’ accounts automatically have the European Account feature.

› If you have accounts in multiple countries, you can decide to keep them, or close

them and sell from your home account.

› You need to comply with the requirements in Amazon guidance for

international and cross border sales, local tax and other applicable laws

and regulations and programme policies in each marketplace.

› Amazon.it and Amazon.es require EUROZONE* bank accounts.

Amazon.de, Amazon.fr, Amazon.co.uk required US, UK or EUROZONE

bank accounts.

Account Management

https://sellercentral-europe.amazon.com/gp/help/help-page.html/ref=ag_200885980_cont_scsearch?ie=UTF8&itemID=200885980&language=es_ES&languageSwitched=1

https://sellercentral-europe.amazon.com/gp/help/help-page.html/ref=ag_200885980_cont_scsearch?ie=UTF8&itemID=200885980&language=es_ES&languageSwitched=1


Need to know

› You need to create offers for each country in the local language/currency.

› If selling in a category requiring approval, you will need prior approval by contacting the

local Seller Support team to be able to list your products. Approval is marketplace

specific.

› The current fulfilment channel for each SKU will apply in the new marketplaces.

You won’t need to manually convert the new listings to FBA for your existing FBA stock.

Listing Management


Country Specific Requirements*

› Pictures must be on a white background

› Instruction manuals must be in French

› Books have a fixed price

› Sellers need an imprint and Terms and Conditions

› Some clients could ask for an invoice

› Please insert your right of withdrawal

› Books have a fixed price

Germany and France

*Non-exhaustive examples


› Categories currently available: Media, Sports, Shoes, Home &

Garden, Watches, Toys, Electronics/PC, Automotive, Baby, Music

› EURO bank account currently required to sell on Amazon.it

› Smaller catalogue – sellers often need to create listings

Country Specific Requirements

› Categories currently available: Media, Baby, Kitchen, Music,

Watches, Toys, Electronics/PC, Shoes

› EURO bank account currently required to sell on Amazon.es

› Smaller catalogue – sellers often need to create listings

› Books have fixed prices

Italy and Spain


Questions…?


References

› European Account Information Homepage

› EU Imports and Cross-Border Sales Information Document

› Amazon Global Selling Manual

› How to open a UK account Tutorial

› Webinars Invitations and Recordings Page

› FBA and EFN pricing Information

› EU FBA Calculator

› German FBA Rate Card

› French FBA Rate Card

› Italian FBA Rate Card

› Spanish FBA Rate Card

› Settings Tutorial*

› Manage Orders Tutorial*

› Manage your Inventory Tutorial*

› EU Marketplaces Referral Fees*

This presentation only serves as an overview. Always refer to the Amazon’s help pages and terms and conditions or contact Seller Support to check

the information is still accurate and up to date, or to get additional help.

* European Seller Central Account Log in Needed

http://services.amazon.co.uk/services/sell-on-amazon/one-european-account/

http://services.amazon.co.uk/services/sell-on-amazon/one-european-account/

http://g-ecx.images-amazon.com/images/G/02/images/EU-Import_CrossBorder_EN.pdf




http://g-ecx.images-amazon.com/images/G/02/images/AMZ_Global_Selling_Manual_UK-EN.pdf

http://g-ec2.images-amazon.com/images/G/02/amazonservices/ags/video/Step1a_USSeller._V385530151_.webm

http://g-ec2.images-amazon.com/images/G/02/amazonservices/ags/video/Step1a_USSeller._V385530151_.webm

http://services.amazon.co.uk/resources/events-webinars/





https://sellercentral-europe.amazon.com/gp/fbacalc/fba-calculator.html

http://g-ecx.images-amazon.com/images/G/03/images/FBA_DE_RateCard_EN_June2013b.pdf




http://g-ecx.images-amazon.com/images/G/08/images/FBA_FR_RateCard_EN_June2013.pdf

http://g-ecx.images-amazon.com/images/G/08/images/FBA_FR_RateCard_EN_June2013.pdf

http://g-ecx.images-amazon.com/images/G/29/images/FBA_IT_RateCard_EN_June2013.pdf

http://g-ecx.images-amazon.com/images/G/30/images/FBA_ES_RateCard_EN_July2013.pdf



https://sellercentral-europe.amazon.com/gp/help/help.html/ref=ag_200692580_cont_help?ie=UTF8&itemID=200692580&language=en_GB




https://sellercentral-europe.amazon.com/gp/help/200692600




https://sellercentral-europe.amazon.com/gp/contact-us/contact-amazon-form.html/


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programme is subject to the FBA terms in the Amazon Services Europe Business Solutions Agreement and policies set forth in the FBA manual. You will be

responsible for ensuring all products registered with FBA comply with such terms and policies found through this link.

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