In this article, I have a guest who has experience selling and sourcing products for the Amazon marketplace in Europe. Baptiste Porzier will be teaching you today on how to succeed with selling on Amazon Europe, from picking the product to the cultural nuances that make it different from what you could be used to in the US marketplace.

 

Selling on Amazon Europe: Is there a Magic Success Formula?

 

I’m not sure if you believe in magic but in our community, a lot of people wish that with following a little formula they think that everything is going to be smooth and they start to plan that in a years time they’re going to make a million dollars and everything is going to be all fine.

https://youtu.be/hwBEg1_PrC8

 

Many Sellers are Thinking the Wrong Way

 

A lot of my clients live in Shenzen and there are many people in China who believe this. They think that they can follow a simple formula and succeed in eCommerce. They do this using several ways such as duplicating your listing by taking all your keywords, your hard work, pay a lot of money to get 5-star reviews (since the reviews are a critical component to doing well on Amazon) and then they even drop the price to weed out the competition in the marketplace. 

Even though that means that they won’t make a profit. They will still do it to weed out all their competition. Some of them will also manipulate the listing by downvoting and flagging the competition. And unfortunately, people still believe this is the way to succeed in eCommerce.

• Shortcut approach still popular (especially in China)
• Sure way to spend lots of money
• High Risk! Amazon could crack down on it anytime

This is not a business. Because they’re not profitable, they spend too much upfront and they could be taken down by Amazon anytime which has been happening in recent years.in 2016 and 2017 Amazon swiped off a lot of fake reviews on products sometimes putting products or even brands out of business.  

 

Selling on Amazon In Europe Comes Down to 1 Secret

 

When selling on amazon in Europe we’ve found that what works is actually the complete opposite of these techniques. In fact, all successful businesses in Amazon Europe have 1 thing in common. It’s the secret weapon!

 

How Do I Know?

 

• I lived in China
• Traveled the world for eCommerce conferences for the past 3 years
• Networked with several 100s of Amazon sellers (beginners, intermediates and very advanced sellers)
• Actively participated with growth of 7-figure to 8-figure brand
• Helped dozens of manufacturers in China get started in Europe

And from all these people I extracted the “secret weapon” from them to sell millions of products in Europe.

But it’s actually not a secret. 

Although the sellers were in different categories, selling different products… they all had 1 key ingredient.

It’s the number 1 task for all business owners to transfer into the customer mind a powerful concept that we marketers call: PERCEIVED VALUE.

 

What Is Perceived Value?

 

Let me explain by giving you an example.

You know PVC is like one of the most used plastics found in products around the world. Right?

Now if I had a product that was made from 75% plastic would you agree to pay me $4,700?

Of course not. You’ll probably think it’s insane to pay that amount for just a bit of plastic.

But Chanel has just that. They sell a PVC bag for that price. 

It’s made from PVC, calfskin, lambskin (which are “patented”), and silver-tone metal (basically stainless steel).

So what is the actual cost of that? Not that much.

Yet the product has a 4 figure price tag on it and even a 5 figure price tag on the “limited edition” products. And over what? PVC plastic.

But people are not paying for plastic. They’re paying for the associated value they have by owning that product. 

Basically you’re using that value people already have in their mind to create the right product and apply it in your own business.

 

Think Of It As The Relationship Between Benefits & Expectations Vs Costs

 

Some important points to consider are:

• Perceived value isn’t the same for everyone
• Values are defined through the “eyes” of each consumer
• The importance of value depends on the consumer and how much they pay for it
• National values aren’t the same for every person has there own prism of values (I call this the 4 eyes of consumers)

 

The 4 “Eyes” Of Consumers

 

 

1. Monetary Value

 

This is where the price is paid against your offer’s perceived worth. This is a trade-off between your product’s values and how much money the consumer is willing to pay to get it. For example, a can of coke is pretty much the same everywhere. A McDonalds meal is more or less the same price worldwide as well. This is value is inherited in the society you live in.

 

2. Functional Value

 

This type of value you offer does, how well your solution responds to the customer need or problem. For example, selfie sticks serve that functional value where people can take photos of themselves. 

 

3. Social Value

 

Is the extend having your product allows the consumer to connect with other people, reflecting an order or status. For example, something that shows you have money such as staying at a  5-star hotel of a Chanel bag.

 

4. Psychological Value

 

Is the extend having your product allows consumers to express themselves or feel better. For example, eating at a restaurant just to treat yourself. 

You need to be able to find the sweet spot for all these values.

Consumers can make decisions in as little as ⅓ of a second. Especially on Amazon, they search for a particular keyword which means they already have something in mind and then they use these 4 values to define what is good for them.

They will usually look at the photos, the price, and then the reviews. 

 

Choose An Audience That Resonate With Your Brand

 

Europe is different from launching a product on Amazon in the US marketplace. When selling on amazon in Europe remember that in Europe there are several countries with different completely different cultures. They may be located on the same continent but they’re by no means the same. The popular markets in Europe are:

• Germany
• United Kingdom
• France
• Holland
• Italy
• Spain
• Rest of Europe

And in society, there are even different levels.

• Lower class
• Middle class
• Wealthy 

Now, these people don’t have the same needs and don’t think in the same way either so that needs to be taken into consideration.

Also in some countries such as France, Italy and Spain people are more attached to tradition and something local.

But in Germany people are more interested in the quality and the functionality of a product.

But generally speaking, people in Europe look at 3 things.

1. Quality (especially in Germany)
2. Price
3. Origin (Most people prefer something made locally)

Good surprises work 100% of the time by exceeding the customer’s expectation by overdelivering. This is how to gain traction in Europe. For example including a VIP card that extends there guarantee for a year (if they put in there email and join your email list). Another example could be to bundle something in for free. Or any other freebie.

People have huge expectations on value delivery.

Make sure to pick an audience your know your business can afford to blow away, in terms of expectation. So don’t pick a product you know there is a lot of financial effort but knowing you don’t have the financial means to compete. Pick a product that you can dominate by overdelivering on the value expectation.

So that is the mindset you need to have when selling in Europe. 

All the sellers I’ve seen succeed in Europe use these techniques.

 

Pro Tips For European Market Expansion

 

1. The most determinant factor is also the most overlooked (quality)
2. Know your numbers by focusing on a product you’re able to financially sustain and dominate that niche
3. Start small and then scale aggressively 
4. Keep good records at all times because if you don’t record you will have problems with the operation such as paying taxes etc.
5. Compound every step you take until you scale to your goal i.e. 7-figures. Don’t reinvent the wheel. 
6. Make professional product listings and don’t use Google translated. Have each listing translated properly. 

 

Quality vs China

 

But if everyone is interested in quality then how do you source your products from China?

Well in China they have better infrastructure than most countries in the world. They came up with 5G, they can build a hospital in a week. A lot of international brands such as Apple manufacture over there.

So it’s all about finding the right manufacturers when you write the right price. The way I do it is by using sourcing agents who live locally in China to find me the right quality products that my European consumers are after.

You then test the samples and if you want to take it up a notch you can fly to China to inspect every single product yourself. After all, it’s your business and it deserves the attention especially if it’s something you want to grow really big. All you can get someone else to do that for you instead and send you a report. But everything has a price.

 

Language More Important Than Price

 

According to Harvard Business Review, a whopping 56.2% of those surveyed said that language was more important than price when making a purchase decision online. So it’s important to get the language right for each country.

 

US vs Germany

 

As Germany is the largest Amazon market in Europe they have a main difference when it comes to writing the description. In the US you would use emotion, but in Germany, they don’t care about them. For them, it’s all about quality.

For example, In the US they would say by emphasizing on passion “we go beyond care”

For Germans, this sounds a bit too much for them. It doesn’t sound right as it’s too emotional for a product. Instead Germans would emphasize more on the respect – “we live to what we promise our customers”

Don’t let Amazon translate them for you as they use automated translation. You need a service that translates them individually. I would recommend YLT translations. 

 

Optimize Each Listing

 

• Title
• Bullets
• Product Description
• Use local keywords for marketplaces to talk about your products for maximum ranking and conversions

I use Jana for my listing translations and I have a deal for you below:

If you scan the QR code you will get a FREE listing and website analysis from Jana.

And as a little bonus you can contact me in my FB group I will give you a profitability sheet that shows you how to be profitable when looking for a product.

Remember to start small and don’t be hesitant to outsource anything that you’re not good at. 

Personally, for selling on amazon in Europe I would start with Germany first as it’s the largest. But remember Germany also stresses the most importance on quality and they’re very demanding when it comes to the quality of the product. 

And then when scaling you can ship to other countries in Europe from Germany as the fulfillment warehouse over there ships outside too.

Pro tip: You can download the AMZ suggestion expander extension on your browser to come up with ideas for your products as well.

So there you have it. That’s how you succeed with selling on Amazon in Europe.

Feel free to contact me in my Facebook group to get started or for more info!

Cheers!

– Baptiste