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 Q4 20171 £2.3Bn UK businesses are capable of UK Marketplace sellers achieved selling in 12 different £2.3bn in exports in 2017, up 28% marketplaces from Australia to YoY.1 Germany to Mexico 10%
30% 60% 50% 5Bn+ Entrepreneurs and small In 2017 more than 5bn items 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 Services Prime 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 Services Why 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 Services The 3 European fulfilment services
1. European Fulfilment network (EFN) 2. Multi Country Inventory (MCI) 3. Pan-European FBA
Amazon Services Fulfilling 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 Services Fulfilling 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 Services Fulfilling 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 Services Which 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 Services Amazon.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
Marketing using Sponsored Products, Decide on the best fulfilment Prepare your shipment Lightning Deals and reach hundreds of channel (Merchant fulfilled and determine if sending millions of customers on Amazon.com and/or FBA) via air or by ocean
Amazon Services Registration - 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 “Amazon Solution provider network” on your search engine. • Advertising Optimisation • 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 Services Testimonials
Amazon Services Questions?
Amazon Services Retail Excellence eCommerce Conference
September 27th
Book now at www.retailexcellence.ie