When Amazon launched in 1994, they would not have dreamt of an annual revenue of almost $150 million three year later. 20 years later, Amazon is the biggest online retailer in the world and dwarfs these numbers with product sales worth over $108.35 billion and a year-over-year growth in retail product sales of 19% in 2017. Their strategic alliance with third-party sellers on it’s marketplaces allowed Amazon to focus on other business opportunities while still being able to offer massive product variety. The impact third-party sellers have on Amazon’s success becomes clear over 50% of Amazon’s total sales is contributed by online sellers on Amazon’s marketplaces. Nevertheless, Amazon isn’t the only one benefiting from this relationship. In 2017, there were over 140,000 Amazon sellers with an annual revenue of $100,000 or above.
Amazon Spain launched just 7 years ago and since then has made its way as Spain’s largest eCommerce websites, superseding eBay Spain. The European crisis in 2008 did leave some marks on the Spanish economy; however, it is recovering fast in recent years. Amazon’s declared revenue in Spain in 2016 almost doubled from €59 million in 2015 to €106 million, which is a very clear indicator that the economy is recovering. Spain’s location in the European Union also allows for cross-border business with Amazon France, and other European countries.
Algopix’s Amazon Spain market research
With more than 35,750 new sellers having joined Amazon.es since the beginning of the year, the competition on its marketplace has increased significantly. This can lead to fierce pricing wars, making it difficult and costly to win the Buy Box Offering. Algopix’s Amazon Spain market research delivers invaluable insights into your top competitors allowing you to effectively position your business in the market to stand out from competitors. Additionally, these insights help you understand the current Buy Box Offering and lowest offering on the marketplace which gives you an advantage over other sellers when it comes to pricing your products.
Strict performance targets like a late shipping rate below 4% makes using Fulfillment by Amazon (FBA) inevitable
Amazon aims to offer the perfect shopping experience to its users, which is why it imposes strict performance targets on third-party sellers. Luckily, Amazon also introduced FBA in 2006, to make it easier to reach these targets. FBA basically takes care of anything related to warehouse operations for you, like storing your products, offering the free two-day delivery, customer service, and taking care of returns. In return, Amazon charges a fulfillment fee and a monthly inventory storage fee. These fees vary depending on size and weight measures of your products, making it a challenge to calculate the actual costs for selling a product through FBA. Algopix’s Amazon Spain product research tool provides you with a breakdown of any costs related to selling a product on Amazon Spain’s marketplace, including taxes, shipping fees, marketplace fees, FBA fees, and other expenses.
Amazon Spain marketplace research
Amazon’s marketplaces have seen an increasing share of Chinese sellers in the past year favored by the success of FBA. Sellers on Amazon.es are facing the same challenges as sellers on Amazon US, Amazon UK, or Amazon Australia. These Chinese sellers usually are manufacturers, who used to sell to retailers and then sold their products online. Still they identified a higher profit opportunity by cutting out the middlemen, i.e. retailers, and selling directly to consumers through online marketplaces. This allowed them to offer their products for far lower prices than other sellers on Amazon while still maintaining a modest profit margin. Consumers in Spain enjoy the same quality products for less money, but other Amazon sellers struggle to keep up with the prices or are forced out of the market because they would operate on a loss when staying in the market.
As a successful Amazon seller, you want to avoid products with fierce competition and low profit margins. Algopix’s Amazon Spain marketplace research helps you identify such products by providing valuable information on both the supply and demand side. For a product’s supply-side it shows the competition level and an in-depth competitor analysis. On the demand-side it shows demand level indicators and last month’s sales volume and gross merchandise volume, and a breakdown of expenses related to selling the product on Amazon’s marketplace.
An increasing amount of sellers not based in Spain are coming to Amazon Spain
Amazon’s introduction of the European Fulfillment Network (EFN) allows European Amazon sellers to sell to all five European Amazon marketplaces in the UK, Germany, France, Spain, Italy from one single seller account. 85% of Spanish Amazon sellers already use it to trade cross-border, but there are still many sellers who need to discover the potential of trading on multiple marketplaces.
When making the step to sell on multiple markets, it can either grow your business or if you’re not fully prepared, can be an enormous risk leading to failure. Algopix supports you in the process of assessing international marketplaces with valuable information that allows you to make a decision regarding the profitability of a marketplace before committing to it. Algopix’s product market research results give you an idea about a product’s demand level and the competition on the market, as well as estimates for a product’s sales volume and gross merchandise volume (GMV) of the last month. With information about the demand and supply for a product, all you need to know is the expenses related to selling a product there. Algopix provides you with a detailed breakdown of any costs related to selling a product on a new market, too. This breakdown includes taxes, shipping fees, marketplace fees, and more. Lastly, you will get a profit margin estimation by Algopix enabling you to make fast, educated business decisions that will help you grow your business.
Amazon Spain product research
Sellers on Amazon.es have on average over 80 products listed for sale, which speaks for the average size of Amazon Spain’s third-party sellers. In order to reach such a size, many hundreds if not thousands of products need to be researched to find the most promising ones. Algopix’s Amazon Spain seller tool recognizes that as an online seller, you cannot entirely focus on sourcing products because there are other important tasks you need to entertain. For this reason, Algopix’s Amazon Spain product research allows you to analyze up to 200 products in a single Bulk Analysis search, which will deliver you Algopix’s valuable insights for those products in just a few minutes.