Choosing Your First Amazon Global Store

What is an Amazon Store?

When you decide to sell on Amazon, you need to register for a Seller’s account in one of Amazon’s global stores. A store is essentially a marketplace specific to a region or country, and once registered, you can start selling in that store. For example, if you register for the U.S. store, you automatically gain access to sell in Canada and Mexico as well, without needing separate registrations​.

How to Choose the Right Store for Your Business

Amazon Global Selling offers sellers the ability to choose from 19 different stores around the world. But how do you know which one is right for your business? Here are three key perspectives to consider:

1. Understanding the Target Country

Every country has its unique economic and social landscape, and understanding these can significantly impact your success. Factors to consider include:

• E-commerce Penetration and Growth Rate: Look at how many people shop online in the target country and how fast this number is growing. Countries with rapidly increasing e-commerce penetration, especially through mobile platforms, are likely to offer substantial opportunities.

• Retail Business Scale and Growth Rate: A larger retail economy may indicate more competition, but also more room for growth. On the other hand, a smaller, rapidly growing market might offer less competition and greater potential for long-term success​.

• E-commerce Sales Proportion: Evaluate how much of the country’s total retail sales are conducted online. A low proportion with a high growth rate suggests a market with significant untapped potential​.

2. Understanding Your Customers

The success of your products depends largely on how well you understand your customers in the target country. Consider:

• Geographical Location: Products that sell well in one region may not be needed in another. For example, winter clothing might be in demand in Canada but unnecessary in the Middle East​.

• Demographics: Younger consumers in rapidly growing economies might favor trendy products, while older populations might prioritize value and functionality​.

• Cultural Differences: Cultural preferences can dramatically influence purchasing decisions. For example, home décor items in Japan might favor traditional designs, while Indian consumers might prefer vibrant colors​.

3. Knowing Yourself

Your strengths and weaknesses as a seller play a crucial role in choosing the right store. Reflect on:

• Your Strengths: Language skills, familiarity with local customs, or strong supply chain relationships can give you an edge in certain markets. For instance, if you speak the language of your target country, your product descriptions and customer interactions can be more effective​.

• Your Weaknesses: It’s important to be honest about areas where you may need improvement, such as understanding local regulations or adapting to different market conditions​.

Evaluating Opportunities and Risks

Once you’ve analyzed your target country and customer base, it’s time to weigh the opportunities against the potential risks. For example, markets in the Middle East may offer great opportunities due to high economic development and low e-commerce penetration, but they might also come with risks related to regulatory changes or currency fluctuations​.

Continuous Evaluation and Adaptation

Remember, choosing the right store is not a one-time decision. The global market is dynamic, and what works today might change tomorrow. Regularly revisiting your market analysis and adjusting your strategy accordingly will help you stay ahead of the curve and capitalize on new opportunities as they arise​.

Get Started with AEL

At American eLogistics, we understand the complexities of Amazon Global Selling. Our expertise in international logistics and our comprehensive resources can help you navigate the process of choosing the right store and expanding your business globally. Contact us today to learn how we can support your journey to success.