Amazon started its journey of becoming the world’s biggest online retailer in 1994 when it only sold books online. Since then, Amazon sells anything you can imagine – from electronics ,fashion to groceries – worldwide. In 2016, Amazon’s eCommerce platforms accounted for 72% of its $135.9 billion in global revenues which backs Amazon’s popularity among consumers. One leading factor for Amazon’s wide product range are third-party sellers, who account for more than 50% of Amazon’s total sales.
Amazon Italy launched in 2010 and since then replaced eBay Italy as the country’s largest eCommerce website with an online retail market share of 14.4% in Italy. There are multiple reasons, why Amazon Italy is an attractive marketplace for third-party sellers not only from Italy. On the one hand, Italy’s close proximity to key markets, such as Germany, France, and the UK, and the availability of Amazon’s European Fulfillment Network (EFN) allow easy access for cross-border trading. On the other hand, only 61% of Italian are using the Internet and 20% of the total population shop online. These figures are expected to increase in the upcoming years, making Italy an attractive market for future consideration.
Amazon Italy product research
In May alone, an additional 8,267 new sellers came to Amazon Italy increasing the total numbers of sellers with products listed to over 135,000. While only a little more than 82,000 sellers can be considered as active sellers since they received at least one review in the past year, it still shows the competitive nature of Amazon Italy’s marketplace. Increasing competition across product categories means there is more price competition. It is now tougher to stand out from other sellers and possibly results in lower profit margins. Algopix’s Amazon Italy product research helps you identify products with few competitors and offers valuable insights into these competitors, like the Buy Box Offering, sellers rating, and other important metrics. With this information, you can form a comprehensive pricing strategy to position yourself in the market to stand out from competitors and maintain an attractive profit margin.
Strict performance targets like a late shipping rate below 4% makes using Fulfillment by Amazon (FBA) inevitable
When selling on Amazon, you either have the option to fulfill your orders yourself, or use FBA. FBA allows you to outsource all of your warehouse operations to Amazon. In return, Amazon charges you a fulfillment fee and a monthly inventory storage fee. Using FBA will help you achieve Amazon’s performance targets much easier but also helps you scale your business since anything warehouse related is taken care of by an experienced partner. Nonetheless FBA fees affect your product’s profit margin and can vary depending on your product’s weight and size measures making it difficult to estimate your actual expenses for selling a product. Algopix’s Amazon Italy product market research tool takes care of this by providing a detailed expenses analysis of any costs related to selling a product on Amazon’s marketplace. You will also get a breakdown of the costs including taxes, marketplace fees, shipping fees, and FBA fees.
Algopix’s Amazon Italy market research
Chinese manufacturers used to be online retailers’ biggest friend and still are to this date to some extent. However, the past years saw an increasing share of manufacturers taking advantage of today’s globalized online retail that takes place mainly on marketplaces like Amazon and eBay. Instead of selling their products to retailers exclusively, they started to sell their products to end-consumers directly. This allowed them to undercut prices from competitors while still maintaining a profit margin while other online sellers struggled to keep up. As a result many online retailers either operate without a sustainable profit margin or are forced out of the market because of decreasing sales volume.
Algopix’s Amazon Italy market research helps you find products that have promising profit margins, which allows you to make your sourcing efforts more efficient and reduces the risk of competing in a product category with low returns on investment. It does so by providing you with relevant insights into your competitors and gives you an idea about a product’s supply-side. Useful information about a product’s sales volume and gross merchandise volume (GMV) from last month allow you to estimate the demand-level for a product. Lastly, Algopix’s Amazon Italy marketplace research analyzes any costs related to selling a product on Amazon Italy, breaking it down by categories like shipping costs, taxes, marketplace costs, and FBA fees, and based on these costs and the purchasing price provided by you, it calculates an expected profit margin for a given product.
An increasing amount of non-Italy based sellers are coming to Amazon Italy
Europe is the home to five different Amazon marketplaces that are in close proximity to each other: UK, Germany, France, Spain, and Italy. While FBA already allowed non-Italy sellers to do business on Amazon Italy, Amazon’s development of the European Fulfillment Network (EFN) pushed this trend onwards. Thanks to EFN, European Amazon sellers can offer their products on all five European marketplaces while only needing one seller account. In the meantime, more than 50% of Amazon sellers in Europe do business in at least two marketplaces, with Amazon Italy being the most attractive destination.
Amazon Italy sellers are lagging behind in this regard with only around 33% selling on other European markets and miss out on this huge opportunity. While judging new markets is never easy, globalization demands it of online businesses in order to stay ahead of competition. By providing intel on seven different Amazon marketplaces, Algopix accelerates the process of identifying new markets. It’s intuitive, easy-to-read interface delivers information about a product’s demand level, expenses, estimated profit, sales volume and gross merchandise volume (GMV) for the past month, and competition level.
Amazon Italy seller tool
On average, sellers on Amazon Italy have over 100 products listed, giving you an estimate of what it takes to become an established Amazon retailer. On the one hand, customers want you to offer a wide range of products to choose from, and on the other hand you must cover different product categories to avoid being prone to changing market demands. This makes product sourcing a difficult task and is usually associated with researching hundreds of products before deciding on a handful of them. Algopix’s Amazon Italy seller tool allows you to analyze up to 200 products at once, so you can accelerate your sourcing efforts and focus on more pressing business tasks. The bulk analysis takes just a few minutes and you will be provided with Algopix’s invaluable product market insights for each product.
