It was recently reported that more than a quarter of all revenue for sellers on Amazon globally came from cross-border transactions, so it’s no wonder that many brands see marketplaces as a shortcut to internationalisation.
Our latest piece of research provides a snapshot of Amazon global insights from 12 key markets that the online marketplace operates in, detailing the similarities and differences between the instances of the country-specific sites. You can download the full report here.
Amazon’s dominant position for ecommerce sales in several markets means that every brand needs a marketplace strategy, however we acknowledge that there are local differences on the platform in each market that should be considered.
We highlight notable takeaways from the report below.
There are significant differences in the annual cost of Amazon Prime, particularly where the marketplace uses the programme to recruit customers in countries where it is building its presence. The price is substantially lower in developed markets such as Australia ($38.80) and the UAE ($38.12), where Amazon is working hard to gain customers and market share.
India was found to have a much higher percentage of traffic from mobile devices than other markets. This comes as no surprise as in India, for many consumers, internet access is limited to smartphone users.
Using Amazon as a route to market in these countries means that a brand will benefit from Amazon's sites being mobile optimised; however, your brand imagery also needs to adhere to best practice to be easily viewed on mobile devices.
Consumers in markets where Amazon is more dominant - such as the USA and Western Europe - have longer visit durations and view more pages per visit than consumers in markets where there is more local competition.
For instance, the average visit duration in Italy is 7 minutes 16 seconds, compared to Japan, where consumers browse much less, which has an average visit duration of only 1 minute 13 seconds.
There is strong commonality between the different markets in terms of the top selling categories in each country. Health and Beauty is top category in all 12 countries, and electronics a top category in 7 countries.
Regional differences can be seen with Grocery & Gourmet Food only ranking as a top category in France, and Stationary & Office only ranking as a top category in Brazil.
Amazon’s USA, UK and German sites receive more monthly unique visitors than these countries have citizens. This is because they will also receive visits from shoppers in markets where there is no local instance of Amazon, or where the availability or price of goods available locally is not as competitive.
To ensure it has selection in key categories, Amazon encourages cross-border selling meaning your products will be readily available in markets that previously might have required a localisation strategy; providing a shortcut to internationalisation for many brands.
Our Amazon Global Insights Report illustrates that although the online marketplace dominates online retail in the USA and several other Western European countries, it is aiming to build that position in countries where it is newer in the market by taking into account the regional differences in consumer behaviour and expectations within its proposition.
Download the full report here, or contact us directly to learn how we could support with your global marketplace strategy or for more information on how we partner with brands to represent them on Amazon.
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Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces.
Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.
So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.
Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products.
An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.
An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.
Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.
At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services.
It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.
It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.
The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.
Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces.
With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.
Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.