Top 5 Considerations Before Selling On Marketplaces in Europe

According to Pattern’s ecommerce equation, traffic is essential to create revenue for your brand on marketplaces. Every additional marketplace is a source of new traffic, which could drive more revenue for your brand. The European marketplaces, such as Amazon or Zalando, have great opportunities when beginning to expand your brand internationally.

At Pattern, we’ve helped countless brands from all global regions expand to Europe with our proprietary international data, marketplace experience, and local expertise. Expanding your brand to Europe with the right 3P partner could be the right revenue-driver for your brand.

Here are five things to consider before expanding to digital marketplaces in Europe:

1. Distribution

Brands who aren't selling globally yet, or don’t really have it as a focus, will likely struggle to just figure out how to get their product into countries. When entering new regions and countries, it’s important to have a high-level distribution strategy already in place. Here are some things to consider before selling your product in Europe:

• How will you get your product into the new regions and countries?
• How will you ship your products to mass retail channels once the product arrives overseas?
• Are you aware of the region’s complexities, with its rules, policies, and traditions in distribution?

2. Demand

Selling in new regions brings new and varying demands from consumers. Thorough research and analytics will help smooth the transition into new regions and markets. Before selling your product in Europe, ask yourself the following questions:

• Have you analyzed the demand for your product in the regions you are considering expanding to?
• Do you know the competitive set for your products in the region(s) and have data to assess traffic and conversion?

3. Pricing

What most brands don’t realize is that an international pricing strategy internationally will likely be different than domestic marketplaces like Amazon and complicated. Here are some questions to ask yourself before setting prices for your products selling on European  marketplaces:

• Does your pricing include or exclude local taxes?
• Have you factored in any additional logistical or operational costs to ensure you remain profitable?
• Does your pricing strategy take into account fluctuating foreign exchange rates?

4. Ranging Strategy

Improving your ranging strategy is essential to success on a global scale because maintaining your product line is an essential part to long-term success on that marketplace.  Here are a few tips to consider for your ranging strategy:

• Examine whether your product range will resonate in the chosen marketplace
• Is the marketplace you plan to launch on known for discounted ranges?
• Remember you may need to consider and alternative ranges to enable you to meet the consumer needs and your business objectives

5. Regulatory and Labeling

International marketplaces may have very different requirements and regulations for products sold in their regions. For example, in Europe, labeling regulations and requirements may vary from country to country. Here are a few questions you should ask before expanding your product to European marketplaces:

• Does the country you plan to launch in require local language product labeling?
• Does the marketplace you plan to launch on require additional product labeling?
• Are there any regulations that you need to comply with?
• Are certain ingredients banned?
• Is your team equipped to handle all the translations and regulatory conversations?
• Do you have the resources to manage the marketplace setup and administrative requirements?

Expand Your Brand to European Marketplaces

At Pattern, we’ve helped many brands expand internationally, and we know from experience that the best way to approach expansion to Europe is to have the right resources, strategy, and support in place before you do so. As a Pattern partner, we’ll help you analyze your regional competitive landscape, set up a strategic and integrated fulfillment plan, and guide your brand through the process from start to finish.

Thinking of expanding your brand to marketplaces in Europe? Contact us.