Going global with Amazon Marketplace - 15 May 2018 - Retail Excellence
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Going global with Amazon Marketplace 15 May 2018
Then – and now
AMAZON’S MISSION
The place where people can find and discover
virtually
anything they want to
buy online
• First Amazon HQ
& fulfilment centre, 1994
• Today - > 300 million active
customer accounts AMAZON’S VISION
• 30% of sales outside North Earth’s Most Customer-
America Centric Company
• 51% of unit sales by third party
sellers
Amazon today
Core principles Customer obsession – start with the customer and work backwards Passion for invention Commitment to operational excellence Long-term thinking
Innovation & invention: products and shopping
£2.3bn
UK Marketplace sellers achieved £2.3bn in
exports in 2017, up 28% YoY
Amazon Services
UK businesses on Amazon
Net Sales – Trailing 12 months
12
UK businesses are capable of
Q4 20171
£2.3Bn
UK Marketplace sellers achieved
selling in 12 different £2.3bn in exports in 2017, up 28%
marketplaces from Australia to
Germany to Mexico
10% YoY.1
30% 60%
50% 5Bn+
In 2017 more than 5bn items
Entrepreneurs and small
businesses sell half the products were shipped with Prime
that Amazon customers buy.3 worldwide.2
North America International AWS
1. Amazon Academy 2018 programme announced to help boost SME exports, following record £2.3bn exports sales by UK businesses selling on Amazon – Press Release
2. Amazon’s Best of Prime 2017 Reveals the Year’s Biggest Trends —More than 5 Billion Items Shipped with Prime in 2017 – Press Release Amazon Services
3. Shopping Local on Amazon: More than 300,000 US Based Small and Medium Sized Businesses Started Selling on Amazon in 2017
Amazon in Ireland
More than 1,000 Irish sellers on Amazon marketplaces in EU 28, of which
three quarters export to the UK
C. 2000 employees in Dublin (AWS) and Cork (CS and development)
What we offer to customers in Ireland:
Free delivery to Ireland over £10 on eligible Books and over £20 on
all other eligible items (3-5 days). Two day priority and 3-4 days paid
delivery are also available. Ship rates were simplified and reduced
recently
Alexa, Amazon Echo Devices and Amazon Music Unlimited were
made available to Customers in Ireland in December 2017
Going global with Amazon
Amazon Services
Amazon European Marketplaces
1
36 33.7 22 18 19.6
129M+
1. Data provided is taken from Comscore and is the number of monthly unique visitors in December 2017
Amazon ServicesPrime Filter – UK Customer Search Behaviour
Refine by Amazon Prime
Prime customers can (and often do) filter their Amazon searches to exclude products that are not Prime. When
customers do this your Prime eligible listings will be included in the filter.
Amazon ServicesWhy Prime?
In 2017 the Amazon fulfillment and shipping network increased by more than
30% in
square footage worldwide. In the US we have more than 6000 trailers and
32 Amazon Air planes in place to serve Prime members1
100MM+ 5Bn+
In 2017 more than 5bn items
Items now eligible for free Prime shipping were shipped with Prime
on Amazon.com1 worldwide. 1
Sources: 1) Amazon’s Best of Prime 2017 Reveals the Year’s Biggest Trends —More than 5 Billion Items Shipped with Prime in 2017
Amazon ServicesThe 3 European fulfilment services
1. European Fulfilment network (EFN)
2. Multi Country Inventory (MCI)
3. Pan-European FBA
Amazon ServicesFulfilling across Europe
1. European Fulfilment Network (EFN)
• Ship inventory to a Fulfilment Centre in the country of your choice
• Pay UK FBA fees for locale delivery (in country), and cross-border
fees for exporting abroad.
Amazon ServicesFulfilling across Europe
2. Multi Country Inventory (MCI)
• Ship your inventory to Fulfilment Centres across
Europe to guarantee next day delivery to your local
customer base
• Retain total control over where you store inventory
• Benefit from local FBA fees (rather than cross-
border EFN fees)
• Option to enable EFN to remaining locales
Amazon ServicesFulfilling across Europe
3. Pan-European FBA
• Product selection must be listed across our
EU5 markets.
• Inbound into your country of choice
• At point of inbound, your stock is intelligently
distributed across European Fulfilment
Centres
• Provides your EU-customer base with a faster
delivery promise than EFN
• Benefit from local fulfilment fees (rather than
cross-border EFN fees)
Amazon ServicesWhich one should you do?
Program Upside Downside
EFN Low barrier to entry (both listing Pay cross-border fees (higher
requirements & VAT cost vs. local FBA fees)
implications) Cannot achieve next-day delivery
Manage single inventory pool abroad
Pan-EU Access local FBA fees VAT implications (inventory
Manage single inventory pool stored in EU5 + PL & CR)
Intelligent stock-movement Requires listing parity EU5
across Europe
Enable next-day delivery abroad
MCI Access local FBA fees VAT implications (inventory
Control inventory stored abroad)
placement/focus on specific Manage multiple inventory pools
markets
Enable next-day delivery abroad
Amazon ServicesAmazon.co.uk Account Set Up
Understand your shipping
Register for a selling account Upload listings to
costs and select a logistics
Amazon.co.uk and review
provider
account settings
Prepare your shipment Marketing using Sponsored Products,
Decide on the best fulfilment
and determine if sending Lightning Deals and reach hundreds of
channel (Merchant fulfilled
via air or by ocean millions of customers on Amazon.com
and/or FBA)
Amazon ServicesRegistration - Where do you register? - Go to https://services.amazon.co.uk/
Amazon Solution provider network
•
“Solution Providers Network” in your Seller Central Account Account Management
• Advertising Optimisation
“Amazon Solution provider network” on your search engine.
• Branding Solutions
• Compliance Solutions
• Customs Brokerage
• Enhanced Brand Content
• External Tax Advisors
• External Translation Providers
• FBA International Shipping
• FBA Prep and Storage
• Imaging Providers
• International Return Providers
• Self-Fulfilled International Shipping
• Storage Providers
• Trademark Application
Amazon ServicesTestimonials
Amazon ServicesQuestions?
Amazon ServicesRetail Excellence eCommerce Conference
September 27th
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