How To Make the most of a big new market by selling On Amazon France
Has your online business expanded successfully in your own country? Are you trying to find new markets to expand your consumer base? Then it could be time to start doing business abroad, and France is the best place to start.
Given the language barrier, you might assume that France would be too much of a struggle. However, the worldwide eCommerce sector is becoming more and more accessible every year, and that includes nations where English is not the national tongue.
Language and cultural barriers still exist, but many of the bigger obstacles to international trading have been reduced by the development of online markets and eCommerce software.
It’s straightforward: You cannot regard boundaries as limitations if you want your business to succeed.
Because of this, you need to tap into the world’s greatest non-English-speaking markets. Let’s examine why France should be your next destination.
Selling in France
The variety of selling prospects available in France may or may not be familiar to you if you’re a seller who primarily conducts business in English-speaking nations.
It’s not surprising that eCommerce has taken off in France given the country’s highly developed economy and consumer-friendly populace.
The French eCommerce market is expected to grow to a staggering $203.5 billion by 2025.
Because French customers just won’t come to you, France is a terrific place for your business to grow. According to a research by the eCommerce Foundation, French consumers don’t trust foreign websites enough to shop there 60 percent of the time. This means that if you don’t have a local presence, you won’t be able to take full advantage of the French potential.
There is a significant opportunity in France. The recent engagement of Amazon in France is a significant indicator of the growing importance of French eCommerce.
Choose between FBM and FBA as your fulfillment method.
FBM can be conducted from the US or the EU, and each region has its own set of difficulties. It may appear less expensive to store and distribute your goods from the US, but doing so will really cost you more money because you will have to pay per-order international shipping costs, which may be anywhere from $22 to several hundred dollars.
FBM from the EU can reduce astronomical shipping costs, but you must look into reliable 3rd party distribution centers to set up storage and handle shipping from their facility. You might still not qualify for Prime.
There are three choices for FBA, each with advantages and disadvantages: Pan-European FBA, Multi-country Inventory, and European Fulfillment Network.
European Fulfillment Network (EFN)
Your purchases with EFN will be kept in one of Amazon’s fulfillment centers and shipped from there all over Europe.
This implies that you will only need to ship your goods to an Amazon fulfillment center in one nation. From this location, your orders will be packaged and sent to all other European marketplaces.
Prime is available for all items that are fulfilled by EFN.
Multi-Country-Inventory (MCI)
MCI is the best choice for you if you like to keep your goods throughout several different distribution facilities in Europe. You can send your FBA stock through MCI to Amazon’s distribution hubs in as many European nations as you choose.
The program called Multi-Country-Inventory has a number of benefits.
Customers will receive their goods from the closest warehouse if you spread out your inventory over several nations, cutting down on delivery time.
Additionally, shipping product in bigger quantities to regional fulfillment centers rather than sending individual orders across international boundaries results in transportation cost savings.
The nation where your inventory is kept will accept your products for Prime.
Pan-European FBA
The Pan-European FBA program, which functions similarly to EFN and is a very helpful addition, is the last but certainly not the least.
You deliver your goods to one of Amazon’s fulfillment facilities, and Amazon distributes them across the EU based on anticipated demand.
Please be aware that depending on the option you select, you could be required to collect local VAT.
Employ a bookkeeping and accounting firm that is experienced with both the Amazon logistics network and European tax regulations. They can help you and make sure you always comply with tax rules, regardless of the fulfillment strategy you use.
Your products are eligible for Prime in all EU marketplaces when you use Pan-European FBA.
Legal, Tax and Product Safety Compliance Requirements
After assessing your current status and choosing which market to enter first, you’ve reached a crucial stage that unquestionably calls for substantial research: the need to comply with legal, tax, and product safety regulations.
Remember that each European country has unique (legal) criteria that may not be what you are accustomed to. These are some legal considerations that you should be aware of:
Setting up a European company or employing an authorized representative in the EU before exporting to the EU
You can think about establishing a European corporation to launch your Amazon business in the EU.
If you wish to export to the EU but don’t want to create an EU-based company, you must designate an authorized representative (AR) who is based in the EU to act on your behalf.
Your AR is responsible for ensuring that all goods sold within the EU adhere to all applicable laws.
Pick your AR carefully! They will be in charge of crucial duties. Therefore, it should be someone who is familiar with the market you wish to develop into, its customs, and who can deal with the legal frameworks that go along with that obligation.
Registration & Accounting for VAT
You must educate yourself about Value Added Levy (VAT), a tax on consumer spending, when doing business in and within Europe. VAT is accumulated on trade, imports, and the movement of products within the EU.
Depending on who you buy from and sell to, you may have varying VAT requirements. You can even be needed to register for VAT in more than one nation, depending on the market and shipping method.
As this is such a significant and extensive topic that depends on your unique situation and can’t be handled in a single blog post, we strongly advise engaging an Accounting & Bookkeeping Service to advise you on your tax requirements.
Since you must register for VAT in order to build an account on Amazon Seller Central Europe, this should be among your first priorities.
Compliance with Product Safety
The compliance with product safety standards is another crucial problem.
Only products that are safe for users are offered on the European market, thanks to EU product safety standards. Therefore, businesses must disclose to customers the hazards related to the products they sell.
Before you begin selling on any European marketplace as an Amazon seller in the EU, you must make sure that your products are in compliance with all applicable EU rules.
Thus, it is the manufacturer’s duty to conduct the conformity assessment and guarantee that the goods adhere to European directives. You must conduct a risk analysis to guarantee that your product is secure for the European market. There are several tests that must be performed, such as laboratory tests and quality tests. The entire procedure is referred to as compliance assessment.
Which testing must be carried out depends on your product and the country where you intend to sell it, as various EU nations may have different requirements.
Following the conformity assessment, you must put together a document containing all relevant data and test results pertaining to your product in order to demonstrate that you meet all requirements.
We strongly advocate hiring a third-party inspection business to make sure that your product’s quality and ingredients satisfy both the law’s criteria and, of course, your own standards.
Markings and Labels
If you wish to sell your goods in the EU, you might need to include labels and markings on it, such as:
EU-Address in full
In order to sell their goods in the EU, Amazon sellers are required by law to provide the name and address of the manufacturer/importer. This makes sure that customers can find and get in touch with the producer if there are any problems with the goods.
CE Labeling/Marking
The abbreviation CE stands for “European Conformity,” or “European Conformity.” The symbol serves as a sign that the goods complies with EU regulations, as its name suggests. It specifically says that the producer has evaluated the product and that it complies with EU safety, health, and environmental protection criteria.
EU Ecolabel
Since its introduction over 30 years ago, the EU Ecolabel has gained widespread acceptance both within and outside of Europe. A designation known as the EU Ecolabel verifies goods and services that adhere to strict environmental criteria during all stages of production and use.
Your product can be qualified for use of the EU Ecolabel if it possesses exceptional, advantageous ecological characteristics.
It is worthwhile to find out if you qualify for the mark since consumers are placing an increasing amount of value on sustainability and because it is a powerful selling factor.
Energy Labels
Electrical appliance manufacturers are frequently required to attach energy labels to their products.
This label is meant to give customers more information so they can choose what to buy more wisely.
A number of energy efficiency classifications, denoted by letters ranging from A to G, are used to grade the energy efficiency of products. The classes A and G are the most and least energy-efficient, respectively.
Therefore, you might need to display an energy label if you sell electronic devices that are likely to have a direct or indirect impact on the use of energy while in use.
You may occasionally need extra labels, such as those for chemicals or foods.
Packaging
Requirements apply to both the items that are marketed within the EU as well as the packaging of those products in order to safeguard the environment and prevent any damage to consumer health.
Depending on the EU destination country, different restrictions apply. For instance, the German Packaging Law must be followed when selling to Germany.
Several facets of packaging are governed by this law, including:
Materials used in packing include packaging waste, package size, and others.
Learn everything there is to know about the rules and laws before you begin selling in the EU. Failure to do so could result in severe issues with the authorities and thwart your expansion plans into Europe.
Identify language differences
The customer experience will be greatly improved and there is a chance that sales will rise even though it is not necessary to offer customer support in the local language of every country you sell in. However, the copy of your listing MUST be written in the language of the nation you are selling to.
The Amazon customer service team is available around-the-clock in the language of the marketplace where the item was purchased if you sell FBA. Whether you sell FBM or FBA, your listing must be readable for the local populace because Amazon does not convert the listing into the local language. Finding a company with native-speaking copywriters to write the foreign Amazon listing for you or hiring a respected translation service would be the best and most profitable options.
Conclusion
Selling on Amazon France has the potential to completely change the game for you and your company.Although you may have already recognized that selling globally isn’t always simple, you will be able to reach a lot of new potential clients and dramatically boost your earnings.
Indeed, it can be a little intimidating and difficult at first, which is why it’s always advisable to speak with an expansion specialist and request specific guidance. However, if you conduct thorough research and are well-equipped, expanding to Amazon France is a fantastic chance.
