This series of articles is based on numerous discussions and experiences with our customers from various industries. We’ll go through topics that make business decision-makers think when they consider accelerating international growth through Amazon e-commerce sales.
The customer had long considered how to increase sales of the company’s products and thus future turnover. He had not yet found a clear and sure way to take steps toward a new growth path. The only clear thing was that growth would be slow in the current domestic market. Internationalization was, therefore, the only option to be considered.
The customer realized there are many risks and great opportunities associated with internationalization. However, finding suitable partners and resellers proved challenging. The investigation and negotiations required time and money, but there were no guarantees to get enough sales. The operation also seemed to start too slowly, and the customer should have taken care of marketing the products in the target country. What if you set up your own online store? The customer started to find out about issues related to it.
When the customer got lost in the e-commerce jungle
The customer mapped out the cost of setting up their own online store, which turned out to be reasonably high. The technical maintenance would also cause expenses. Solutions for handling money were easy to find, but the logistics required for e-commerce and its costs were more complicated. Would it make sense to have a warehouse in the destination country? What about shipments from the factory to the warehouse in the destination country and the customer? What if someone orders outside the target market? How are warranties and customer returns handled? What kind of marketing would direct enough customers to the online store to cover sales?
The customer was also concerned about the packaging and labeling of the products and the registrations and sales permits for each target market. What should be considered for a product to be sold in the target market, and what would it mean as an investment?
The client tried to limit the clearing work and ask different parties what would be the most potential target market in which to invest. At the very least, it became clear that all service providers would charge their costs, even if sales remained low. Also, any problems that arise would be the company’s sole responsibility. Therefore, entering a new market would be a significant monetary investment with many variables and only one risk carrier.
In the e-commerce jungle, navigating requires skilled guides
The customer still decided to look for other options for internationalization, which would be launched with lower investment and risk but with the highest possible sales potential. At this point, it had become clear to the customer that whatever the mode of internationalization, the most expensive would be to create demand for the products. In the Amazon online store, demand already existed and was available without much effort.
The Amazon e-commerce platform became the most attractive option, as it would solve many of the problems mentioned, including low investment, demand, logistics, warehousing, distribution, and returns. Still, there were more questions and guesses than answers and facts in the customer’s mind.
The search resulted in several domestic Amazon expert companies. Your Amazon Partners team hit the strategic picture most comprehensively. Based on previous contacts and other recommendations, they had the best expertise.
In the next section, we’ll look at how YAP experts answered client companies’ questions, how they tackled investment issues, and all that needed to be clarified before the customer made the decision to go to Amazon.