Never has there been a better time to take your business global.
For members of the tech sector, digital nomads and e-commerce small businesses in thriving hubs across Europe, the opportunities are endless. For many of these businesses, Fulfillment by Amazon (Amazon FBA) is a missing piece of the puzzle that suddenly makes everything click. Without Amazon FBA, these players would not have the ready-made marketplace of “millions of loyal Amazon customers” and the economies of scale (scaling capability) to pull it off.
As a trusted partner to many German FBA sellers selling across Europe, FreightHub is now expanding its service to the USA, enabling businesses to sell their goods on the US marketplace.
Here are ten tips on how to make it work as a European Amazon FBA seller to the USA.
1. Make the Leap to the US
Whether you are selling private label or branded goods –sourcing your items locally or from overseas– the decision to expand your reach to the United States is lucrative.
Selling to an American target group has many upsides. The market is dense. Close to 50% of US internet users live in a household with an Amazon Prime membership. Amazon.com (US) is the most established marketplace for the retail giant with the greatest number of current sales. Once you have decided to sell in the US, it is often only the logistical layer of sending goods from Europe to US fulfillment centers that may hold you back or seem daunting.
2. Find a Good Freight Forwarder
It is true that the process of the door to door shipment can be difficult, especially when you don’t have an importer of record in the US. There are many tripwires along the way in shipping to a US-based Amazon warehouse. You need to prepare the packages correctly and set up a Customs Bond to pay import taxes and duties, among many other steps. This process is significantly eased by using an experienced freight forwarder who can take care of the entire shipment.
With FreightHub, you obtain real-time quotes with transparent prices for different options. Delivery is seamless. The company has long-standing ties with customs authorities and Amazon in the US.
How does it work? First, you register with FreightHub.com – which takes less than a minute. In a live webinar, FreightHub introduces you to their platform and shipping procedures. You receive an all-in quote within seconds and can book your shipment online. You are guided through all the necessary steps, such as assembling the proper documentation. You then enter the address and time of collection. FreightHub will take care of export customs clearance for you. With the shipment on its way, you can track it 24/7 online. Should a problem arise, FreightHub proactively contacts you. FreightHub also arranges import customs clearance in the US for you.
Upon arrival in the US, the goods are repacked to Amazon standards and loaded on a truck to be shipped to the Amazon fulfillment center, with the necessary appointment booked with the receiver. So simple!
3. Keep an Eye on Margins
The chances of earning greater profits online versus bricks and mortar operations (by cutting out costs for intermediaries and retail space) are very promising. Small businesses and entrepreneurs on Amazon “sold more than 2 billion items in a record-breaking first half of 2017.” An astonishing 51% of units sold on Amazon were sold by third parties in Q2 2017. Successful Amazon FBA sellers experiment or use market intelligence to determine which products and price points will generate a healthy profit after costs are taken into consideration. “Small businesses are thriving on Amazon, and we’re thrilled to bring these entrepreneurs together to help them take their business to the next level,” declares Cynthia Williams, Vice President for Fulfillment by Amazon.
4. Know Who You Are
In a recent interview with Freight Hub, Officeflucht blogger Bastian Barami discusses how digital nomads leverage technology to make a life that works for them. His experience mirrors many who are contemplating selling on Amazon FBA. In the interview, Barami says that he helps people who, like himself, are interested in freedom and traveling. It’s a lifestyle. The desire to “work smart” outside of the confines of an office is a preference growing in momentum.
Up to 162 million people in Europe and the US— 20 to 30 percent of the working-age population—engage in “some sort of independent work”. In the interview, Barami stresses that while this avenue is not for everyone, the opportunity of being able to work anywhere and not be tethered by traditional 9-to-5 life is rewarding.
For some, the digital nomad life has been thrust upon them through downsizing or barriers to traditional opportunities.
For others, a side gig is a way to do what you love, to chase a passion and live out adventure. A new breed of “digital nomads”, creatives, technical entrepreneurs, innovators, and disruptors is emerging – people are renting out their home via Airbnb, founding startups, or selling products on Amazon.
As a small vendor or entrepreneur, you may encounter obstacles and naysayers. Part of getting ahead is about gaining confidence. Know that you are part of a “new breed” of a digital entrepreneur who likes to work hard and work smart.
5. Know the Times You Live In (So You Can Stay One Step Ahead)
There are several trends in the hustle economy that directly affect the European Amazon FBA seller (many positive). Knowing these trends helps you to stay one step ahead.
The democratization of opportunities – through digital platforms means more can jump into the economy. Those who are not afraid of digitalisation and learning the ins and outs of e-commerce are uniquely positioned.
The rise of artificial intelligence – is ensuring that order fulfillment on e-commerce platforms like Amazon occurs with greater efficiency. Robots help move pallets, lift heavy items and pick items from shelves among other tasks in Amazon warehouses. This is a trend that that would have been unimaginable not long ago.
See now, buy now, wear now – Younger consumers are without a doubt dictating how brands and retailers operate. The “distracted” generation has a much shorter attention span than other generations, and it turns out that the short attention span means fashion brands and retailers need to move faster for customers.
6. Find Others in Your Tribe
In December, digital entrepreneurs will descend on Berlin for TechCrunch Disrupt. Europe is the capital of many tech hubs and even some digital nomad hubs.
Technical entrepreneurs and especially Amazon FBA sellers, by definition, often work alone. In Barami’s words, they are “location-independent.” Reach out and connect with others at conferences or in co-working spaces to collaborate and share ideas – A good start is the FreightHub Academy Facebook group, a place to share knowledge.
7. Help People by Adding Value
Gary Vaynerchuk, serial entrepreneur and marketer, has been at the forefront of the American hustle economy for more than a decade. His mainstay words of wisdom have always been about helping others and giving back.
As an Amazon seller, you won’t need to respond to customer inquiries. Amazon handles customer support, exchanges, and returns. Still, the idea of customer service and helping others as a mindset is always helpful. The more customer-centric you are in building your brand on Amazon, the better.
8. Be Persistent
It may take a little while to find the right products and price before you go “live” with Amazon. Keeping on top of changing European and American regulations is another factor. Persistence is key.
9. Manage Mission Creep and Time
Knowledge workers and creatives – including start up entrepreneurs – are often right-brain thinkers. An organization may or may not be your strong suit. With FreightHub’s daily tracking for careful planning and other features, there is less work and involvement required on the administrative front.
Being a startup requires dealing with tasks that are complicated and multi-layered. Mission creep is common. Working with a good freight forwarder and Amazon FBA lets you get back to business on what is truly important to you.
10. Have Fun
The most successful Amazon sellers are the ones who are passionate about the process. Have fun. Enjoy! Many articles have charted the mindset of those in tech hubs where all-nighters fuelled by coffee are common. Digital nomads are heroes in and of themselves. Hold your head up high – you’re a digital entrepreneur in the Hustle Economy.
To find out how to get started and begin shipping goods from the EU to the US as an Amazon FBA seller, see our inforgraphic below or sign up at freighthub.com today.
