Founded in 1994, Amazon has made its way as the world’s most powerful online retailer with product sales of over $108.35 billion and year-over-year growth in retail product sales of 19% in 2017. While Amazon owns many subsidiaries, it’s partnership with third-party sellers, that make up over 50% of Amazon’s total sales, has been one of the most successful for both sides. Amazon can offer a wider range of products to its customers and does not need to worry about sourcing products as sellers on their marketplace can reach millions of customers. Over 140,000 Amazon sellers have generated an annual revenue of $100,000 or more in 2017.
Germany’s largest eCommerce website, Amazon.de, launched its marketplace in March 2002, like Amazon UK, and is now home to over 190,000 third-party sellers with products listed for sale. In 2016, Amazon Germany had a total sales worth €8.1 billion ($9.36 billion), making it the biggest market outside the US and accounting for more than 10% of Amazon’s total revenue. Thanks to the close proximity of the European marketplaces and the introduction of the European Fulfillment Network (EFN), sellers in Europe can do business on all European markets using only one seller account.
Sell on Amazon Germany
Every day, over 275 new sellers sign up for Amazon Germany, intensifying competition for any given product. This makes it more arduous to keep an eye on all of your competitors and winning the Buy Box Offering, making Amazon Germany marketplace research an integral part of everyday business. Algopix’s Amazon Germany seller tool delivers you invaluable information about your top competitors for the Buy Box Offering soit easier for you to position your business in the market and price your products correctly.
Strict performance targets like a late shipping rate below 4% makes using Fulfillment by Amazon (FBA) inevitable
Amazon’s FBA gives it’s online sellers the option to outsource their warehouse operations to Amazon, which allows especially smaller sellers to compete with others by offering the same two-day delivery, free shipping, and high-quality customer service. Everything is done by Amazon in exchange for a fee that consists of a fulfillment fee and monthly inventory storage fee. FBA fees will have a direct effect on your profit margin and are tough to calculate, specifically when offering many different products. Algopix’s Amazon Germany product research provides a detailed expenses analysis of all the costs related to selling a product on Amazon Germany’s marketplace. This includes taxes, FBA fees, shipping fees, and marketplace fees.
Algopix’s Amazon Germany product research tool
The rise of Chinese sellers on Amazon is a global phenomenon and Germany is no exception. Many of these Chinese sellers are actually manufacturers, who realized that selling their products directly to consumers instead of using retailers as middlemen is more lucrative. This is made possible by the popularity of marketplaces and Amazon’s FBA service. Customers in Germany love it, because they can get the same quality products for less money. However, it poses a challenge for any other seller on Amazon’s marketplaces, since lower prices from competitors either means lowering their own prices resulting in smaller to no profit margins or going out of business.
Algopix’s Amazon Germany product research tool can help you identify products that have favorable profit margins yet don’t have high competition. It does so by analyzing your competitors on Amazon Germany, determining the best price to offer your product, calculating all expenses related to selling your product, and finally providing you with an estimated profit margin. These outputs are complemented by figures for the product’s sales volume and gross merchandise volume in the past month, providing additional demand indicators. Given this information, you are able to make informed product sourcing decisions that favor your business and help it grow.
An increasing amount of non-Germany based sellers are coming to Amazon Germany
Germany is one of the leading economies of the EU and is located right in the heart of Europe. This makes it an attractive marketplace not only to German Amazon sellers. Thanks to the European Fulfillment Network (EFN), all five european Amazon marketplaces in UK, Germany, France, Spain, and Italy can be accessed with only one seller account without limitations. Over half of European Amazon sellers are already doing business in at least two marketplaces, with Germany being one of the most attractive.
The opportunity to sell on multiple marketplaces at once should not be missed because it can help win new customers and increase sales significantly. Before committing to a new market, there should be thorough market analysis to estimate if it is profitable to put in time and work. Algopix simplifiesthis research process by offering high-quality, easy-to-read information about a product’s demand level, expenses, competition level, estimated profit, sales volume and gross merchandise volume (GMV) for the past month. Additionally, Algopix provides this intel not only for the European Amazon marketplaces, but also for Amazon US, Amazon Canada, and Amazon Australia.
There are hundreds of products that sellers have to go through to find one or two that are worth selling
Sellers get price lists from manufacturers every other day and then need to sift through hundreds of different products trying to find one, maybe two promising products. This process takes up lots of resources and given that Amazon sellers in Germany on average have more than 405 products listed, it won’t be done in a few hours. Algopix’s Amazon Germany market research offers help by allowing you to analyze up to 200 products at once and delivering its valuable, high-quality results in a matter of minutes rather than hours or days.
