Council Post: ‘Expand Your Horizons:’ Why BoJo’s Brexit Vision Is A Valuable Call To Arms For Amazon Sellers

Founder and CEO of Molzi.

Britain has a “massive opportunity to expand our horizons.” These were the words of Boris Johnson during his first TV interview after the end of the Brexit transition period on New Year’s Eve. Love him or loathe him, Johnson’s words ring true for U.K. Amazon sellers looking to expand into new markets in 2021. Let me explain why.

Traditionally, U.K. sellers have looked to European countries as default targets for expansion, given the relative ease of transportation of goods in the EU and its market maturity and familiarity in comparison to other markets. European markets still have much to offer U.K. sellers, but with new Amazon regulations removing some of the ease of selling to Europe, and U.K. ties to the EU looser than before, now is the time for brands to also consider markets further afield as valuable expansion targets.

It’s a well-known belief that if a brand can make it in the U.S., they can make it anywhere. After all, America is the epicenter of the Bezos empire. Not only is the U.S. e-commerce market expected to grow to $1,204.77 billion by 2024, according to eMarketer, but it can also be a slightly more familiar target for U.K. sellers due to the shared language and similar culture. 

Looking Beyond Europe 

Brands should not overlook marketplaces that present more of a challenge in Asia and Latin America. When selling in Asia, Japan is ripe for rich pickings, being Amazon’s second-largest market with over 699 million monthly visitors and holding a large share of Japan’s total e-commerce sales. Amazon Japan is also much more accessible to international sellers than its competitors in the market, as companies don’t have to be registered in Japan to set up an account within the country. For this reason, it’s often the first choice for businesses expanding into Asia and Japan.

Both the U.S. and Japan are established Amazon markets, but targeting emerging markets like Brazil can prove lucrative. Although trade and foreign investment have grown significantly ever since Brazil lowered its trade barriers in the early 1990s, competition from international sellers still remains low in Brazilian marketplaces. Critically, e-commerce in Brazil is a relatively untapped resource, which could easily turn into a gold mine for tenacious brands looking to expand their global reach.

Pre-Brexit, many brands were hesitant to sell into these markets, fearing that the e-commerce strategy would not be as clear-cut as selling to the European market. It’s true that the shopping culture in these markets is vastly different from what U.K. e-commerce teams are used to. This can occasionally lead to inexperienced managers failing to capture the attention of the new consumer audience. But with the right expertise and the drive to deeply understand the new market inside out, brands can win big.

Starting Your Expansion Journey

Before expanding into any new market, brands must establish whether the marketplace is a good fit for their products. Often, sellers are prompted to expand by analyzing customer data and seeing a healthy demand for their products in the expansion target market. But it can be as simple as understanding that there will be demand for your products year-round in the new market. For example, fans will sell year-round in countries with a warm climate, whereas demand for fans in the U.K. will only spike during the summer. 

Brands must also knock down any language barriers preventing them from communicating their value effectively to potential consumers. When expanding to Brazil, for example, it is important to know that Brazilian Portuguese is the native language and has subtle differences from original Portuguese. Brazillian consumers will notice differences in spelling and grammar immediately, negatively impacting their perception of the product and brand. As a result, it is important to use a translator who can transcreate listings into fluent copy.

It’s also imperative to consider aspects of culture like religion and seasonal holidays. For example, religion can dictate the prominence of national holidays in the market. Brands must assess which of these holidays — religious or not — will be important for e-commerce and adjust their advertising and promotion strategy accordingly. 

Consumer shopping habits can also differ wildly from market to market. Mobile e-commerce is a rapidly growing trend in several countries, as demand for the speed and simplicity of in-app payments increases. Brands must appeal to the m-commerce market in these regions to maximize sales and customer conversions. Another shopping trait to consider is how conservative a culture is with its spending. In many countries, consumers tend to avoid splurge purchases and instead only buy essentials online, meaning that brands that apply promotions regularly may see more consistent success.

Sky’s The Limit?

There’s no doubt that brands that rise to and embrace these challenges will experience a valuable learning curve as they set out on their expansion plans.

But as the Amazon empire also expands, more and more opportunities present themselves to brands hoping to ride on the coattails of the e-commerce giant. Brexit is just the latest reminder to Amazon specialists that the world is well and truly their oyster. Armed with a skilled team, a Day 1 attitude borrowed from Bezos himself and the power of Amazon’s vast logistics network, no brand should be limited by their current horizons. Instead, companies can look beyond and make the most of all the ever-growing world of e-commerce has to offer.

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