Benefits of selling on Amazon UK in 2022
If you are an e-commerce seller based in Turkey and thinking of expanding abroad, but wondering whether it is really worth it, in this article, you will learn about selling on Amazon UK, whether Amazon FBA is a good step to take to grow your business, and e-export in the UK. We will discuss the pros and cons of doing so.
Growing internationally may seem daunting at first, but it doesn't have to be.
The UK economy is one of the strongest economies in Europe. At the same time, almost all (99%) young people and adults aged 16 to 44 in the UK use the internet and shop online. In statistics, men and women are at very similar rates. Considering these statistics, we can say that England hosts endless opportunities for e-export.
Amazon UK is the third largest Amazon marketplace in the world by sales volume, serving the 67 million strong UK population. Although only 20% of the US population in terms of population, people in the UK are known for their appetite for online shopping. This situation has made UK Amazon the 3rd largest market in the world. It also offers a clear opportunity to achieve growth with its ease of access to Europe.
Like anything, it has its pros and also some cons. Let’s take a look at each in detail to understand whether expanding into the UK and European markets is the right move for your online business.
Pros of selling on Amazon UK
Most online sellers start selling their products on their home market. But why would millions of entrepreneurs outside the UK see this as a potential marketplace to launch? Here are some advantages of expanding your e-commerce operation to the UK.
A fast growing market
Sales on the Amazon UK platform rose to volumes of $31.9bn (£23.6bn). Taking 2 years of growth into account to reduce some of the statistical effects of the pandemic, the UK grew 82% from 2019 to 2021, up from 55% in the previous 2-year period ($11.3 billion to $17.5 billion).
Simple market expansion opportunity
The focus should always be on which growth strategies provide the least resistance and fuel growth most quickly.
If you do not encounter any incompatibilities when you measure the suitability of your products when entering the UK market, you can enter the market with your existing products without needing a new supplier in terms of production.
Opportunity to easily start selling your products on Amazon
If you have a product listed on Amazon, this product is marked with a unique code called ASIN in Amazon’s own system. ASINs are a code that allows your product to be recognized across Amazon. Therefore, it offers the opportunity to easily re-list your currently listed products without losing the comments and points you have earned.
Access advantage to Europe
When the terms of Brexit were finally finalized and the UK left the EU, many professional sellers were not quite sure how this would affect their business. Amazon has removed its European Logistics Network (EFN), which means you can no longer store products in the UK and easily access other European markets.
However, in early 2022 Amazon made a u-turn on this decision and reintroduced the EFN program, to the delight of many UK sellers. This made it possible to re-warehouse inventory in the UK and for Amazon to ship the same inventory to customers through Europe.
While Amazon FBA fees for this option aren’t as attractive as a full-scale launch to other European markets with the Pan European program, it does mean you can launch in the UK and test your product in different countries at the same time. This opens up a unified market similar in size to the US without many of the startup costs that would have been incurred before the latest update.
Foreign exchange earnings
One of the most important benefits of e-export is that you will produce in TL and earn in British Pounds. The difference between the two currencies makes your production costs appear lower in the UK market and thus you can make more profit with the sales price.
The opportunity to sell on Amazon has become an option that will be more beneficial the sooner it is considered, as e-commerce becomes more prevalent worldwide and continues to grow rapidly. Considering the potential for international expansion and offering existing products to a wide new audience, starting to sell on Amazon UK will be an important market for your brand.
If you want to benefit from the advantages of the UK market as soon as possible, you can fill out the form to meet Envoyo, which offers versatile services for businesses of all sizes that want to do e-commerce abroad, and determine the services for your needs, and start your e-export adventure in the UK as soon as possible.
