Amazon mainstream market and main category analysis

In 2022, global retail e-commerce sales will increase by 12.2% year-on-year. It is expected that by 2023, retail e-commerce sales will account for more than 20% of global retail sales, and cross-border e-commerce will become the new normal. Of course, the great market potential does not prove that anyone can make money. You still need to understand the characteristics of some related sites to choose one or more sites that are most suitable for you, so as to maximize the benefits.

As a global leader in cross-border e-commerce, Amazon currently operates in more than 20 countries and regions, delivers goods to 185 countries and regions, has more than 300 million active users around the world, and operates 175 hardware operation centers, over 40 sorting centers and 46 warehouses. For air cargo aircraft, third-party seller sales account for 58% of the entire platform (total sales are $160 billion).

At present, 13 sites have been opened to Chinese sellers, including the United States, Canada, Germany, the United Kingdom, France, Italy, Spain, Japan, Mexico, Australia, India, the Middle East, and the recently added Singapore site. So what are the markets and opportunities for these sites?

01 North American market

Including the US station, Canada station, Mexico station. As long as we open the US station, we can open the remaining 2 stations at the same time.

The US site is Amazon’s largest marketplace in the world. It is also the No. 1 market for China’s export commodities. In recent years, e-commerce in the United States has developed rapidly, reaching 17% of the total retail sales in the United States, and maintaining an annual growth rate of more than 10%. Amazon accounts for 28% of the total US e-commerce sales, ranking first; overall traffic also ranks first, with monthly traffic reaching more than 1.7 billion, accounting for more than half of the traffic share of all e-commerce platforms.

Amazon has more than 100 million Prime members in the United States, and Prime members account for more than 50% of sales to American customers. 75% of members are middle-class families in the United States, and the average spending is as high as 2 times that of non-prime members, and the purchasing potential is great. Especially in North America’s Prime Day, Black Friday, Cyber ​​Monday and other festivals, it is a good opportunity to quickly create popular models and increase sales.

Canada is very similar to the US in terms of marketing festivals and spending habits. Opening the Canadian station in the US station can also simultaneously manage the goods and the corresponding sales of the Canadian station.

Summary: If you want to do Amazon, Amazon’s North American station, especially the US station, can be the first choice. Because the US station market is the largest, it is the easiest to create explosive models, and it is also the easiest market to obtain corresponding returns. According to big data analysis, household appliances, kitchen utensils, pet supplies, and sports games are all very suitable for Amazon North America.

02European market

The European station is the second largest market for the entire Amazon.

The European Union covers 28 countries. Amazon sellers can open a joint European account by registering on Amazon Europe, and operate 6 countries at the same time. The monthly fee is only 25 euros, and you can sell your products to 28 countries! Because of the fierce competition in the US market, many big Chinese sellers have also emerged in the European market. As long as it can solve the problem of VAT tax in Europe, the European station is a very good choice. In particular, attention should be paid to the German market in Europe. The European market mainly sells furniture, wireless electronics, clothing, outdoor products, 3C digital products, and beauty products.

03 North American market

There are not many Chinese sellers on the Japanese site, and the market share and product categories are not as many as those of the North American and European sites. At the same time, the Japanese site is not as sound and strict as the American site, and even gray operations may occur.

The main categories of the Japanese station include:

1. 3C digital/electronic products

Japan is a big country in electronics. In recent years, the demand for 3C digital and electronic products has been increasing, especially mobile phone accessories, tablet protective covers, etc., and the competition is relatively small, so everyone may wish to sell on Amazon Japan.

1. Fashion

Japan is more inclined to mix and match clothes and pursue personalization; individualized and fashionable clothes are more popular in Japan than simple style clothes.

1. Home appliances

Small household appliances are also popular in Japan, and some products such as dehumidifiers and driving recorders have relatively high sales. You can see what other products are better, you can go and find out.

1. Sports products

Japanese people are more enthusiastic about outdoor sports. Mountaineering and running are popular sports, so flashlights, hiking shoes, knee pads, climbing sticks, etc. are all products that are in great demand. Although the demand for indoor sports is relatively small, the market is large, but it should be noted that it must be a small fitness equipment.

The hot-selling products in Japan are all relatively small products, so sellers should avoid selling some large products. When the sales volume is relatively low, the transportation is also more difficult, and everyone should understand it clearly.

Summary: The Japanese station belongs to the blue ocean market, and there is still a lot of room for development. We can focus and get into the layout as soon as possible.

04 Emerging Markets: Indian Market

Although India’s economy is not as developed as China’s, its netizens have reached 830 million. Factors such as unbalanced development, lack of industrial and manufacturing industries, and lack of physical purchase places have highlighted the huge potential of online purchases in India.

The development of local e-commerce in India is lagging behind, but Amazon has invested heavily in recent years. According to reports, the total investment exceeds more than 20% of India’s national income. You can see Amazon’s ambitions in emerging markets, so which categories are more popular in the Indian market?

The first is electronic products, such as watches, mobile phones, etc., which account for more than 48% of the sales market. If you are doing electronic products, you can consider entering the Indian market.

The second is clothing products, which account for 29% of the market.

Next is furniture and maternity and baby products, which are also very popular in the Indian market and are growing fast.

Summary: The Indian market has great potential, and the competition among sellers is relatively small. You can pay attention to this fast-growing market.

05Australian market

Australia used to be a market dominated by eBay. In 2017, after Amazon entered, it carried out a series of actions such as establishment of warehousing and marketing promotion. Now Amazon has grown into the largest shopping platform in Australia.

If you want to enter the Australian station, you need to focus on the 3 categories with the largest sales: the first is the fashion industry, the second is furniture, and the third is auto accessories. These three categories are the key selections in Australia, and other categories can also be selected through local consumption habits.

06 Middle East Market

The Middle East station mainly includes two markets, namely the two most developed countries in the Middle East - the United Arab Emirates and Saudi Arabia. As a major energy exporter, the local light industry is underdeveloped, and it mainly relies on imports, most of which are also imported from China. In recent years, e-commerce in the Middle East has also developed very rapidly, and its per capita GDP is also ranked ahead of the world, seven times that of China, making it very rich. Internet coverage is high, so the unit price of online shopping is also high. After Amazon acquired the largest e-commerce platform in the Middle East, it entered the Middle East market aggressively and maintained a very rapid growth.

Some of the best-selling categories in the Middle East:

The first is the most popular categories at the moment: electronic products, clothing, furniture;

The second is that the growth rate is very fast: beauty, personal care, sports outdoor equipment;

If you want to do the Middle East market, you also need to understand the consumer preferences in the Middle East market. For example, Middle Eastern people like the color of gold and the texture similar to crocodile leather. At the same time, you must also consider the religious culture of the Middle East market, including male and female consumers. difference.

07Singapore Market

Amazon entered the Singapore market in 2019. Singapore, as the throat of the Malacca Strait, focuses on the Southeast Asian market, that is, the ten ASEAN countries. At present, it is 0 fee to enter Amazon, and there is no monthly fee, but the order volume will not be too much. If it is to lay out the future development space, you can continue to pay attention to Amazon’s warehousing construction and FBA infrastructure in this market.

According to the findings, clothing and accessories were the most popular product category among Singaporeans among all respondents, followed by health and personal care, and groceries.

Summary: If you need to settle in at present, it is recommended to use the method of self-delivery to sell, because the current time and price of China Post for Singapore are quite good.