Expanding your business beyond the US can open exciting possibilities for growth. More countries can mean more customers. But international expansion requires careful planning and strategy.
Some sellers can struggle with international launches because they might rely on instinct or limited information. They might miss popular selling seasons, underestimate costs, or choose countries where their products aren’t in demand. These missteps can lead to tied-up inventory, unexpected expenses, and lost opportunities.
As an Amazon seller, you have access to tools to develop a strategy based on real data. Instead of guessing, you can make informed decisions about where to expand, what it will cost, and when to launch. In this guide, you’ll learn:
- What a market entry strategy is
- How to build a market entry strategy with the right data
- What you need to plan your international expansion with Amazon
- 4 Amazon tools you can use to guide your expansion strategy
What is a market entry strategy?
A market entry strategy is how you plan to introduce your products to a new country. A successful approach often involves a deep understanding of customer demand, clear insight into operational costs, and strategic timing of your launch. The right approach can help you identify and act on opportunities that others might miss.
Build your market entry strategy with the right data
Developing a strong market entry strategy often involves insights from three key areas:
1. Customer demand
Understanding which products customers want in different countries can help you choose where to expand. With this knowledge, you can enter a country knowing there’s interest in your products. To research customer demand:
- Look for consistent demand patterns over time, not just short-term sales spikes
- Research what customers in different countries prefer and how they shop
- Identify which of your products have features or benefits that appeal across regions
Learn about global market demand
2. Operational costs
Knowing your launch and operating costs can help you expand sustainably. Shipping, taxes, and storage costs can all differ by country, and understanding those differences can help you protect your profits. To calculate costs:
- Start by listing every possible expense, from initial setup to daily operations
- Research country-specific requirements that could affect your costs, like taxes, compliance, and shipping
- Consider both your startup investment and long-term operating budget
Learn about value-added tax (VAT)
3. Launch timing
Choosing the right time to enter a new country can affect your success. Seasonal trends and buying patterns vary around the world. Understanding these patterns can help you time your launch effectively. To determine timing:
- Study how seasons affect buying habits in your target countries
- Consider holidays or other shopping events that drive interest in new products
- Research local shopping trends and popular shopping periods
Learn now to craft a market entry strategy
4 Amazon tools to guide your global entry strategy
Professional sellers can access a suite of tools to help them develop a strong expansion strategy.
Each tool can help you research a key part of your strategy: customer demand, operational costs, and launch timing. Here are four tools you can use to gather insights around these areas:
1. Global demand for your products
The Global demand for your products tab in Amazon’s Marketplace Product Guidance tool provides recommendations every two weeks about products enrolled in Fulfillment by Amazon (FBA) that could succeed in different countries. You can download these recommendations to build a historical data set, helping you spot consistent opportunities over time.
The tool analyzes over 600 attributes related to sales trends, customer searches, page views, and other demand signals to identify your best opportunities. Machine learning models then forecast potential sales for your products in each store.
To access the Global demand for your products tab, select Growth from the Seller Central main menu. Then select Marketplace Product Guidance, followed by Global demand for your products.
Note: This tool doesn’t provide recommendations for Canada, Mexico, Brazil, or North Africa.
Access Marketplace Product Guidance
Learn more about Marketplace Product Guidance
2. Cost analysis
The Cost analysis tab in Amazon’s Sell Globally experience can help you understand what expansion could cost in different countries. The tool provides detailed breakdowns of:
- Estimated first-year sales potential
- One-time setup costs like VAT registration and product compliance
- Ongoing costs like fulfillment, storage, and shipping
- Category-specific requirements and associated costs
This comprehensive view helps you budget accurately and protect your profits.
To access the Cost analysis tab, select Inventory from the Seller Central main menu. Then select Sell Globally, followed by View details in either Region view or Store view. Then select the Cost analysis tab.
Learn more about Sell Globally
3. Sales insights
The Sales insights tab in Amazon’s Sell Globally experience can help you understand overall buying patterns and market trends that can affect your success. The tool provides visualizations of:
- Category sales trends over the past 12 months
- Top-performing ASINs in your categories
- Sales distribution across price ranges
- Return rates and advertising metrics
You can analyze monthly and seasonal changes across different countries to help time your launch effectively. Understanding these broad patterns can help you enter new countries when overall demand is strong.
To access the Sales insights tab, select Inventory from the Seller Central main menu. Then select Sell Globally, followed by View details in either Region View or Store View. Select a country, then select the Sales insights tab.
4. Category insights
The Category insights tab in Amazon’s Marketplace Product Guidance tool can help you understand how specific types of products perform in different countries. The tool shows:
- Top 10 products by revenue in each category
- Most successful new product launches
- Performance metrics like units sold, page views, and conversion rates
- Common product features driving purchases
You can see seasonal patterns within your product categories. This can also help you choose the right time to launch based on your inventory.
To access the Category insights tab, select Growth from the Seller Central main menu, followed by Marketplace Product Guidance. Then select the Marketplace Product Guidance tab, followed by Category insights.
Tool requirements
These tools are available to Professional sellers who have completed at least one sale in the past 12 months. This requirement doesn’t apply to sellers who have been selling for less than 12 months.
Turn insights into action with expansion steps
Once you’ve researched your expansion opportunities, Sell Globally’s expansion steps feature can guide you through the launch process. It provides a clear, step-by-step roadmap organized into four phases:
1. Account set up
- Complete registration and identity verification.
- Submit required documentation.
- Submit tax registration details, like VAT ID.
2. List your products
- Add products.
- Transfer Brand Registry rights, if applicable.
3. Ship your inventory
- Add offers to Amazon FBA.
- Send your first shipment to FBA.
4. Drive growth
- Create ad campaigns.
- Set up deals and coupons.
- Implement pricing rules.
- Create A+ Content to elevate listings.
- Enroll in the Vine program to get reviews.
To access expansion steps, select Inventory from the Seller Central main menu. Then select Sell Globally, followed by View details in either Region View or Store View. Select a country, then select View Expansion Steps in the top-right corner of the “Launch in” section.
Use Amazon tools to inform your global entry strategy
Amazon tools can help you succeed when expanding to new countries. You can find out which products might sell well, how much expansion could cost, and when to launch your products. The more you use these tools, the better you’ll understand your opportunities in each country.
Check these tools every two weeks to gather fresh insights and watch for patterns over time. With good information about demand, costs, and timing, you can make strategic choices about where and when to expand.
Frequently Asked Questions
Which countries can I expand to from the US?
Will Amazon’s expansion tools work with all product categories?
Do I need separate Professional selling plans for different countries?
How often should I check Amazon’s expansion tools for updates?
*A Professional selling plan is $39.99 a month + selling fees. Learn more
