When a new brand emerges in a market, it’s often slightly behind competitors. This is usually because of lack of knowledge in the sector, or even because of a lack of knowledge of the area and its people. However, with Amazon, neither is the case. The eCommerce giant comes into the market with depths of eCommerce understanding — and funds to match. All good reasons to sell your products on Amazon!
Amazon sells around the globe but is about to open Amazon Sweden or amazon.se. Amazon has been distributing in Sweden for a while already, via its UK and DE websites. So should competitors Swedish like Fyndiq.se and Tradera.com be concerned about Amazon’s emergence or is Amazon an opportunity for buyers and sellers to get more from online retail? And should you, as a Swedish-based eTailer or eTailer selling into Sweden, sell your products there?
Even if you’re not in Sweden or selling into Sweden, should you sell on Amazon? Yes!
Another eCommerce Website — Potential Doubts
Having doubts about selling on Amazon is understandable. Especially when your loyalties lie with competitors. You may already have a system perfectly set up to sell on Fyndiq or Tradera or another regional competitor and therefore see no reason to also sell on Amazon. Amazon may seem like just another eCommerce website doing the same thing. On the other hand, you may be worried that these platforms may struggle with the emergence of the eCommerce giant.
However, Amazon in Sweden will likely be neither just another player nor a menace to competitors’ survival. It may though, assist your survival to have a presence there.
Selling on Amazon can be highly advantageous. Despite the successes of current Swedish and other regional eCommerce platforms, there are still certain things those competitors can’t offer customers, such as Prime benefits and various options for Amazon Advertising that help merchants reach a global audience.
Amazon brings new ideas to the table with global and local sales opportunities. I believe it will revolutionize the Swedish eCommerce market. Other eCommerce platforms will have to adapt and offer more to both sellers and buyers. This will lead to a more competitive market in which sellers get more for their products online — a worthwhile reason to break the routine of using the same eCommerce platform for every sale.
Amazon’s National Domains — Bringing Global Success Locally
In 2019, 95% of the Swedish population stated they regularly use the Internet — a total of 9.7 million people and an increase of one million people compared to previous years. 66% of those people shop online every month — the highest percentage of all the Nordic nations. Additional research showed that 84% of those shoppers purchase online from Swedish websites. (Similar statistics around the globe.)
This highlights the opportunities available when selling using a Swedish entity. It also highlights why Amazon needed a Swedish domain.
Recently, Amazon opened its Dutch domain. Using the Dutch domain as a European example, Amazon has great potential in the Swedish market. Amazon had no actual presence in the Netherlands before March 2020, yet it had made 350 million euros worth of sales in the Netherlands in 2018 — up a staggering 40% from the previous year, which highlights its potential as an eCommerce platform.
The success of Amazon.nl highlights the potential of Amazon.se and elsewhere. The Swedish equivalent will look to tap into a market that favors local domains, while also building on recent European market penetration.
If Amazon Sweden experiences a similar level of growth and impact, it will be worth using it as a seller?
Reasons to Sell on Amazon
- A trusted platform — Amazon is a well- known and trusted platform. This means that regardless of the popularity of other platforms, Amazon will attract a large number of potential buyers. Additionally, because Amazon is so trusted, it typically retains buyers. Therefore sellers obtain frequent customers too.
Last but not least, because the platform is well-trusted, many users are willing to spend more for the same product. This is because of Amazon’s reputation as being trustworthy, but also because of its policies that back that up. Money-back guarantees, free returns on many products, fast customer service, easy-to-follow guidelines, and reporting all make the platform reliable, dependable, and profitable.
- No listing fee — Amazon doesn’t charge a listing fee. This enables a great deal of trial and error. You don’t have to worry about whether to list an item or not because, if it doesn’t sell, you don’t have to pay. If you’re just starting in eCommerce, this is a fantastic way to decipher which products are popular and which aren’t — and for less risk.
- Amazon Prime — Amazon Prime is a monthly or annual subscription service where customers pay for benefits, such as fast delivery, no minimum purchase for delivery, Prime Video, and Amazon Music. These benefits also favor sellers, because they encourage customers to make more purchases. Amazon Prime customers spend a total of $218 a year more than non-Prime Amazon customers. This means you’re more likely to make money on a website, like Amazon that rewards regular spenders, than on another eCommerce website that doesn’t.
Same-day delivery users spend far more annually and shop more often. They’re also generally more satisfied with the service they receive and more likely to shop at Amazon again within the next 12 months. (Example: US Market)
- Ease of use — Amazon is notoriously easy-to-use. You don’t have to worry about continuously relisting your items. And if you choose to opt for the fulfillment by Amazon option, Amazon takes care of the majority of shipping and customer service for you. This reduces your workload as a seller and lets you dedicate more time to other areas. The initial listing of items is also simple on Amazon. It’s accessible to anyone, regardless of the size of the business.
- Global reach — Amazon is a huge brand and is known and trusted around the world, which also works in your favor as a seller. Currently, Amazon dominates the eCommerce market in the UK, US, Germany, and other countries. However, there are many countries where Amazon doesn’t have a presence. Shoppers in those countries often choose to use the Amazon websites from countries nearby, to ensure the fastest delivery. This gives you opportunity as a seller to sell to customers outside of Sweden or your local country. It also brings you exposure on a potentially global scale. You can even take this one step further and check where your products are being purchased. If products are regularly being bought in the US, then it may be worth selling your products on US Amazon too. By using Amazon in this way, you get more data and more sales!
- Amazon Associates — The Amazon Associates program lets you use Amazon to promote products similar to yours, on your website. You then get commission from the sales of those products. However, this is a double-edged sword, and you have to be careful not to deter people from buying your products instead. If you choose the products you promote using the Amazon Associates program wisely, you’ll reap the benefits. Choose poorly and it may do more harm than good.
I Welcome Amazon to Sweden
All in all, I believe that Amazon adds something to the Swedish — and any other — eCommerce market. Selling on Amazon definitely has advantages. It brings new features that push eCommerce in Sweden into uncharted territory. The trust the brand generates will by itself help sellers get more for their products. While the lack of a listing fee means sellers can also learn more about which products are profitable. In turn, this will bring new opportunities for buyers and sellers, and not only on Amazon.
Amazon’s biggest eCommerce competitors in Sweden will have to be wary of the new competition. They will have to adapt to survive. Despite that, Amazon’s push for more ecommerce buyers may help them too, if more people start to buy online, which is already happening.
About this Post and Its Author
This post was contributed by long-time Finch partner DataFeedWatch. DataFeedWatch simplifies the complexity of feed management for customers and ensures that the feed quality on Google Shopping Ads and other shopping channels is always high, which significantly supports ad performance.
The post author Martin Ender is VP Sales and Country Manager DACH at DataFeedWatch. Martin has years of experience as an ex-Googler in the field of data feed creation and optimization. He regularly runs various webinars and workshops on data feed optimization and feed marketing automation with agencies and Google.