With over 20 global platforms, including major markets like Europe, Japan, and Canada, Amazon enables brands to access millions of new customers and capitalize on the increasing demand for e-commerce.

This diversification not only opens new revenue streams but also reduces dependence on the U.S. market, which can be subject to fluctuations. For instance, Amazon's international sales reached $35.89 billion in Q3 2024, marking a 12% year-over-year increase.

Additionally, the U.S. marketplace accounts for about 68.8% of Amazon's revenue and attracts nearly three billion website visitors monthly, highlighting the vast potential of international markets.

So, if international expansion on Amazon is high on your priority list, you’re setting yourself up for a solid growth trajectory.

What you’ll learn

• Why sell internationally on Amazon
• Getting started with Amazon Global selling
• Challenges to prepare for in international Amazon expansion
• How OpenBorder streamlines international Amazon expansion

Why Sell Internationally on Amazon?

The prospect of international expansion on Amazon is enticing for good reason. In 2023, Amazon’s international sales surged to over $131 billion, demonstrating a vast and growing opportunity for sellers worldwide. Amazon’s reach spans 21 global marketplaces across North America, Europe, Asia, and beyond, positioning products in front of millions of new customers. By selling internationally, your brand stands to gain visibility, tap into new demand, and potentially enjoy a faster growth rate than it might in an oversaturated domestic market.

International expansion through Amazon provides:

• Diversified Revenue Streams: Expand beyond U.S. customer dependency and mitigate risks.
• Broadened Brand Reach: Gain visibility among global audiences in high-demand markets.
• Competitive Advantage: Capture untapped market segments with lower competition in some regions.
• Enhanced Profitability Potential: In certain markets, ad spend and marketing budgets stretch further, boosting ROI.

For many brands, markets like the UK, Germany, Japan, and Canada offer immediate demand and accessibility. When strategically executed, international expansion on Amazon can yield exponential growth for your business.

Plus, in some markets, your growth dollar might even stretch further than it does in the U.S., allowing you to make waves faster than in an oversaturated domestic space. 

Getting Started with Amazon Global Selling

International expansion on Amazon begins with a clear strategy, from selecting your target regions to setting up logistics and understanding compliance requirements. Here’s a closer look at what to consider as you launch your Amazon international expansion journey:

Step 1: Market Research and Selection

Selecting the right markets is crucial for the success of your international expansion on Amazon. Begin by evaluating demand, competition, and growth potential in various regions using tools like Amazon’s Marketplace Product Guidance. A deep dive into local market trends will help you identify where your product has the highest potential and where entry barriers may be lower.

Pro tip: Targeting a high-potential market early on can provide an initial momentum boost, which often fuels further international expansion down the line.

Step 2: Choose Your Fulfillment Model—FBA vs. FBM for International Markets

Amazon offers two primary fulfillment models for international sellers: Fulfilled by Amazon (FBA) and Fulfilled by Merchant (FBM). Choosing the right model for your international expansion on Amazon depends on several factors, including cost, control, and your team’s resources.

• FBA: Amazon handles warehousing, shipping, and customer service, making it ideal for regions where you want hands-off logistics. However, in competitive categories where other sellers are using FBA, adopting it becomes less of a choice and more of a necessity. 

Without the Prime badge that comes with FBA, your products are at a significant disadvantage in rankings and customer trust. While FBA involves costs associated with sending inventory to Amazon’s regional centers, the boost in visibility and sales potential often outweighs these expenses.

Take Bling Jewelry’s example. As a US based brand known for affordable, high-quality jewelry, Bling Jewelry leveraged Amazon FBA to supercharge its international growth. By securing the Prime badge, they boosted customer trust and visibility, leading to a 160% sales increase in Japan and 70% in Europe.

• FBM: Retain more control over shipping and fulfillment by managing logistics independently. This option is often more cost-effective for regions where logistics infrastructure is accessible.

This model worked particularly well for Jeffs' Brands, a health and wellness company. In their case, FBM provided the flexibility to handle order fulfillment during peak seasons or special promotions, making it easier to scale up operations without relying on Amazon's warehouses.

Pro tip: OpenBorder specializes in supporting brands with FBA setups, ensuring smooth international expansion and compliance with regional regulations. If you already use FBA in the U.S., extending it internationally is highly recommended to leverage the Prime badge and improve rankings. 

Step 3: Setting Up Your Amazon Professional Seller Account for International Expansion

To start selling internationally on Amazon, set up a Professional Seller Account through the Sell Globally section of Amazon Seller Central. This step is essential for gaining access to Amazon’s various marketplaces and managing your listings in different regions.

Account Types for International Expansion:

• North American Unified Account: Includes access to the U.S., Canada, and Mexico.
• European Unified Account: Covers the UK, Germany, France, Italy, and Spain.
• Linked Accounts: Link multiple regions, such as North America and Europe, to synchronize inventory and manage orders in one interface.

Step 4: Build International Listings for Target Markets

Building international listings is a critical step in your Amazon international expansion strategy. Start by navigating to Inventory > Sell Globally in Seller Central and select Build International Listings. This feature allows you to create listings tailored for each target market.

Key considerations for building international listings:

• Localization: Adjust product descriptions, titles, and keywords to reflect the language and cultural preferences of each region.
• Market-Specific Pricing: Set competitive pricing in each market and consider currency fluctuations. 
• Product Optimization: Tweak listings to incorporate local keywords and optimize for the preferences of each market. For example, European customers might prefer VAT-inclusive pricing, while Japanese consumers may prioritize product detail transparency.

Petcube is a great example of localization done right. They have optimized their Amazon listings for international markets by not only translating content into local languages but also adjusting the images and descriptions to reflect regional preferences.

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The result? - Petcube doubled their global retail distribution by entering AEON PET and SoftBank stores in Japan and Petbarn in Australia.

Pro tip: Amazon’s Build International Listings tool enables you to mirror listings across multiple markets while allowing region-specific adjustments.

Step 5: Select a Fulfillment Method for Your International Expansion

Choose a fulfillment method that aligns with your market goals and cost structure:

• Fulfilled by Amazon (FBA): Amazon handles warehousing, shipping, customer service, and returns. Ideal for scaling quickly in high-demand markets.
• Fulfilled by Merchant (FBM): Retain control over fulfillment and manage logistics independently for cost-sensitive regions.

Pro tip: For cost-effective and efficient logistics, consider setting up a localized 3PL network with partners like OpenBorder.

Challenges to Prepare for in Amazon International Expansion

1. Navigating Compliance, Taxes, and Duties

Compliance with local regulations is essential in every market. Each country has its own tax and duty regulations that can impact your product pricing and profitability. For instance, failure to collect, remit, and file sales tax can result in penalties ranging from 10% to 25% of the tax amount, depending on the jurisdiction. 

Given that profit margins in retail can be relatively thin, such penalties and additional costs can substantially erode profitability.

Therefore, ensuring compliance with VAT regulations and accurate product labeling is crucial to maintaining healthy profit margins in international markets.

• Europe: Ensure VAT is included in product prices, and register for VAT in applicable countries.
• Japan: Prepare for labeling requirements and appoint a local representative for imports.

Import Requirements
Successfully expanding internationally often requires importing goods into the target country. This includes VAT registration, obtaining deferral licenses, and ensuring product compliance with local regulations. For example:

• Supplements (UK): The Food Standard Agency regulates supplements, reviewing ingredients and labels for compliance. Although no registration process is required, products may need overlabeling.
• Cosmetics (UK): The Office for Product Safety and Standards (OPSS) oversees cosmetics, requiring label reviews, ingredient checks, Cosmetic Product Safety Reports (CPSR), and Product Information Files (PIF). Cosmetics must also be notified with OPSS before import.

Pro tip: Partner with OpenBorder and fast track regional product compliance.

2. Handling Currencies and Payments

Exchange rates and payment processing fees can erode profit margins. Amazon’s Currency Converter for Sellers offers a basic solution, but many sellers benefit from a more tailored multi-currency platform.

Pro tip: Invest in a payment solution that minimizes fees and provides real-time exchange rates to maximize your revenue retention.

3. Understanding Regional Customer Preferences

Customer expectations vary widely between regions. Tailoring your approach to each market is essential to ensure customer satisfaction.

• Europe: Customers expect VAT-inclusive pricing and quick returns.
• Japan: Clear product descriptions and fast shipping are crucial.

How OpenBorder Streamlines Amazon International Expansion

Navigating the complexities of Amazon international expansion can be daunting, but OpenBorder simplifies the process with comprehensive support, including:

• Regulatory Compliance: Expert guidance on local regulations for taxes, product standards, and customs.
• Optimized Logistics: Access to a network of international carriers and 3PLs to keep shipping costs low and efficient.
• Multi-Currency Payment Solutions: Solutions to manage revenue across multiple currencies and regions.

The Time for International Expansion on Amazon is Now

Taking your brand to a global scale on Amazon unlocks tremendous growth potential and establishes your presence as an international player. With a strategic approach and the right partner, like OpenBorder, you can simplify logistics, streamline compliance, and maximize profits as you grow globally.

Ready to start your Amazon international expansion journey? Reach out to OpenBorder for a demo today and learn how we can help you succeed across borders.