Digi Aansh brings you the opportunity to sell globally.
With the Amazon Global Selling Program, you can upscale your business from India to the global markets in 200+ countries and territories. While there are 200+ countries to sell in, North America is the biggest Amazon marketplace, wherein the United States of America (USA) is the largest economy in the world.
The United States of America is the second largest e-commerce market (after China), with annual sales of $792 billion, wherein Amazon is the most popular online marketplace with approximately three billion visits per month.
Amazon America Marketplace Explained
In the US, online retail accounts for 14% of the total retail sales. With a population of 601 million and total internet penetration of 90%, e-commerce user internet penetration is expected to be 68.1% by 2022 and the revenue is expected to reach $1 trillion by 2022.
The Top Drivers of the Amazon America Marketplace
Amazon U.S. is the largest of Amazon’s marketplaces
Amazon’s U.S. (Amazon.com) is the largest e-commerce site in the world, in terms of both total traffic and revenue generated. Currently, U.S. alone counts for 80% of the total sales on Amazon and sees more than 3 billion monthly visitors, which is three times the monthly traffic of the next largest global e-commerce site, eBay.
In comparison to Amazon.com, the other marketplaces rank as-
Canada is around 5-10% of Amazon.com sales volume.
The UK is approximately 10% of Amazon.com's sales volume.
The EU (France, Italy, Germany, Netherlands and Spain combined) is also around 10% of Amazon.com sales volume.
Australia is approximately 1% of Amazon.com's sales volume.
Other Pros of selling in the Amazon America marketplace include
Of Americans who shop online and have incomes of $150,000 or more, 70% have Amazon Prime membership.
Among the general household, more than 142 million people have Amazon Prime membership.
64% of Amazon U.S. sellers have earned more than $25,000 in profits throughout the lifetime of their businesses
70% of Amazon U.S. sellers earn more than $1,000 per month in revenue
It’s easier to sell in the U.S. than in the EU
The only other Amazon marketplace that comes close to Amazon.com in size is the combined European Amazon network (UK, Germany, Italy, Spain, Netherlands & France). However, the European marketplace has its hurdles to start selling on the platform.
The sellers in Europe must account for Value Added Tax (VAT), which is added earlier in the supply chain . In America, sellers collect sales tax from shoppers, which is applied after a sale is made. As an added cost of goods sold, this makes pricing products competitively in the EU a little more difficult.
Products sold in the European marketplace have to cater to more than just English speakers. Europe has marketplaces in Spain, Germany, France, Italy, the Netherlands, and the UK, and their products and listings must be readable in as many as six different languages. In the American marketplace, most sellers list their products in English only. Accommodating a broader range of languages is more inclusive and may help you reach new and different consumers, it just happens to take some additional time and effort.
A seller can start selling on Amazon U.S. with few obstacles
Comparatively, sellers face very few obstacles in entering the Amazon USA marketplace. 54% of sellers who sell in the Amazon U.S. marketplace had their businesses up and running in less than three months.
In addition, 64% of U.S. sellers realized a profit on Amazon in less than a year.
Early Access Benefit
As Amazon’s home country, the US is usually the first market where new services and programs are rolled out. The sellers in the USA were the first to gain access to FBA, Seller Fulfilled Prime, listing videos, Launchpad, new advertising opportunities and much more.
Although Amazon offers FBA services in each country it operates, the sellers in the U.S. enjoy some additional benefits.
Reduced shipping costs, fast delivery, easy returns, and effective customer service play an important role in boosting sales.
Sale Events trend throughout the year
With 70% of Americans having an Amazon Prime membership and hundreds of millions of active customer accounts, sale periods trend throughout the year.
The sellers can reduce the low sales periods and sell throughout the year by taking advantage of key events that include Valentine’s Day, Halloween, Prime Day, Black Friday, and Cyber Monday.
Valentine’s Day – February
Mother’s Day – May
Father’s Day – June
PRIME DAY – June
Back to School – August and September
Halloween – October
BLACK FRIDAY/CYBER MONDAY– November to December
Christmas – December
New Year’s – December
Which countries can sell on Amazon U.S.?
Currently, Amazon U.S. accepts sellers from around 102 countries around the world. You can view the entire list of accepted countries here.
If you’re considering expansion across North America, Digi Aansh can make your entry so much easier. We, at Digi Aansh, provide a multitude of services ranging from registration, compliances, US FDA license, Import Export code and complete account management among others. To know more, visit our website or contact us directly.