Guest Post by: Stef van Boekel - founder of Marketplace Distri
A European eCommerce Operator & Accelerator has been working for two years on a game-changing solution, which they call AIaaS – Amazon Infrastructure as a Service. And brings a big opportunity for brands that want to grow!
The European Amazon market is the largest eCommerce market, with twice the number of online shoppers and the highest spending per person globally. Yet, all of this does not come without its challenges: in fact, it is also the most complex market with 8 languages, 27 VAT levels and four different currencies. All of this results in the fact that only <5% Amazon sellers are selling on a Pan-European level. Safe to say that Amazon Europe holds huge potential and, if operated correctly, it is a winning game for many brands.
In a nutshell: what is this solution about and why could it be a unique approach for your growth plans?
Marketplace Distri (MPD) is the developer of this solution.
By onboarding onto the AIaaS solution, MPD will open your account on a Pan-European level and, as an operator, run the Amazon business for you on a daily basis. But this does not mean that you or your agency, api tools, etc. will not be able to access the “sellercentral” account to deal with performance marketing activities or daily management. On the contrary, the solution is designed to let you have the desired control over your listings, while MPDs works in the background providing the necessary infrastructures to bring your business to Europe – making MPD responsible for all activities regarding import, tax filing, reporting and so much more.
This is because, MPD will act as an IoR (Importer of Records), as well as an SoR (Seller of Records): from import to stock control, to customer support and VAT/tax filing, up to optimised localised listings, MPD will do it all in-house -Any brand can potentially access the European market in just a few weeks and grow without having to worry about compliance, internal investments or working with a multitude of service providers. Also, Amazon Europe is relatively new if compared with amazon.com, making it less saturated in terms of products offered: 1.1 million sellers in Europe versus 2.5 million in the US.
Result
Amazon sellers that are successful in one country, see a +60% increase in growth in the first year after expanding on a Pan-European level. US brands' medium-term goal (2 years) is to reach 80% of amazon.com’s results. In addition to this, all the efforts you made in developing your listings in the US will pay off in Europe too, as the original reviews will be “inherited” by the local product pages.
Downfall market strategies
In an era when the market fluctuates as it does today, the importance of diversifying risk and opportunity becomes even more pivotal. Today, Amazon Europe is active in 9 countries – 4 of which have opened only in the last 2 years. Amazon is constantly building warehouses throughout Europe, showing that the European market is expected to grow rapidly in the next decade. The revenues on the country level may vary, but adding more countries increases the count.
Cross-border expansion is more accessible than ever before, and this brings both opportunities and risks. Local “heroes” over time will eventually lose against those international brands generating more resources. Are you willing to take on this challenge and start investing? Instead of worrying about where your brand will be in 5-10 years from now, start partnering with MPD today: through our designed solution we can support you with your stock and marketing funding to ensure you are able to scale.
By combining AccrueMe funding and a scalable solution, will give your brand those superpowers needed to be successful in Amazon’s jungle!
Go check it out https://www.marketplacedistri.com/eng/solutions/aiaas
About the AccrueMe Guest Post Author…
Since 2011 Stef van Boekel has launched over 100 brands from startups, SME up to Fortune500 companies on European marketplaces and generating millions of sales. Today Stef is the founder of Marketplace Distri, an European Amazon Operator & Accelerator.