How to use FBA for international selling

Fulfillment by Amazon (FBA) provides a seamless way for sellers to expand their business to international markets. By leveraging Amazon’s global network of fulfillment centers, you can tap into new markets, improve delivery times, and build trust with international customers. However, entering international selling with FBA requires careful planning and understanding of logistics, compliance, and customer needs.

This guide covers the essential steps and strategies to successfully use FBA for international selling.

Table of Contents

1. Understanding Amazon’s Global Selling Programs

Amazon offers two primary programs for selling internationally using FBA:

a. Amazon Global Selling

This program allows you to list your products on Amazon’s international marketplaces, such as:
- North America (US, Canada, Mexico)
- Europe (UK, Germany, France, Spain, Italy, etc.)
- Asia-Pacific (Japan, Australia, India, etc.)
You maintain separate accounts or unified accounts depending on the regions.

b. Amazon’s Build International Listings (BIL) Tool

The BIL tool helps you create and manage product listings across multiple marketplaces.
It synchronizes prices and updates for easier management.

2. Setting Up for International FBA

a. Register for an Amazon Account in Your Target Region

Create a seller account in the marketplace you want to sell in.
For example, if you want to sell in Europe, register on Amazon.co.uk or another European marketplace.

b. Choose a Unified Account (If Applicable)

Unified accounts allow you to sell in multiple countries within a region (e.g., North America or Europe) using one account.

c. Understand FBA Export Options

Pan-EU FBA: Amazon stores inventory in multiple European countries and fulfills orders locally.
North American Remote Fulfillment: Allows you to fulfill orders from the US to Canada and Mexico using your US inventory.
FBA Export: Enables international customers to purchase from your home marketplace.

3. Preparing Your Products for International Markets

a. Research Market Demand

Use Amazon’s tools (e.g., Product Opportunity Explorer) and third-party research tools to identify market trends and demand.

b. Compliance with Local Regulations

Ensure your products meet the legal and regulatory requirements in the target country.
- Examples include safety certifications, labeling standards, and ingredient restrictions.

c. Translate Product Listings

Listings should be in the local language of the target marketplace.
Use professional translation services or Amazon’s Marketplace Translation Service.

d. Labeling and Packaging

Ensure product labels comply with local laws and are in the native language.
Add FNSKU barcodes and any region-specific markings.

4. Setting Up International Fulfillment

a. Choose the Right FBA Model

Ship Directly to International Fulfillment Centers:
- Send inventory directly to Amazon warehouses in your target region.
- Requires managing customs, duties, and import documentation.
Global Inventory Management:
- Store inventory across Amazon’s fulfillment network and fulfill orders from the closest warehouse.

b. Shipments and Customs

Work with Amazon-partnered carriers or freight forwarders to handle international shipping.
Prepare accurate customs documentation, including:
- Commercial invoices
- Packing lists
- Harmonized System (HS) codes for each product

c. Pay Import Duties and Taxes

Depending on the region, you may need to pay import duties or taxes before Amazon accepts your shipment.
In Europe, ensure you’re VAT registered.

5. Managing Taxes and Legal Requirements

a. Value-Added Tax (VAT)

VAT is mandatory in most international markets, such as Europe.
Register for VAT in the countries where your inventory is stored.
Use Amazon’s VAT Services for simplified VAT registration and filing.

b. Customs Compliance

Ensure all products are classified correctly with HS codes.
Understand country-specific import restrictions and duty rates.

c. Protect Your Intellectual Property

6. Optimizing Listings for International Markets

a. Localized Keywords

Conduct keyword research specific to the target region to optimize SEO.
Tools like Jungle Scout and Helium 10 can help identify local trends.

b. Pricing Strategy

Adjust pricing to account for:
- Local purchasing power
- Import duties and VAT
- Currency exchange rates

c. Customer Service

Offer customer support in the local language.
Use Amazon’s Customer Service by Amazon (CSBA) program if needed.

7. Monitoring Performance and Inventory

a. Monitor Inventory Levels

Use Seller Central to track inventory at international fulfillment centers.
Utilize Amazon’s inventory management tools to avoid stockouts or overstocking.

b. Analyze Sales Data

Review sales reports to identify high-performing products.
Adjust strategies based on customer feedback and sales trends.

c. Replenish Inventory

Plan replenishment shipments based on historical sales and seasonality.

8. Marketing and Promotions

a. Sponsored Ads

Run Amazon Sponsored Products and Sponsored Brands campaigns tailored to the international audience.
Use localized ad copy and target region-specific keywords.

b. Promotions

Offer discounts, coupons, and deals to attract customers in the new marketplace.

c. Leverage Amazon Global Store

Amazon’s Global Store program can display your products to international customers shopping in your home marketplace.

9. Handling International Returns

Ensure your return policy complies with local regulations.
Use Amazon’s FBA Return Management services for a hassle-free return process.

10. Benefits of Using FBA for International Selling

Fast Delivery: Amazon’s global network ensures quick shipping to customers.
Customer Trust: Fulfilled by Amazon badge increases credibility.
Local Expertise: Amazon handles customs, duties, and returns.
Scalability: Expand into multiple countries without needing local infrastructure.

11. Challenges to Address

High Shipping Costs: International shipping can be expensive. Use Amazon-partnered carriers for cost savings.
Compliance Risks: Missteps in tax or regulatory compliance can lead to penalties.
Inventory Management: Over or understocking can impact profits.

12. Conclusion

Using FBA for international selling opens the door to significant growth opportunities. By understanding the nuances of each market, preparing products for compliance, and leveraging Amazon’s robust infrastructure, you can build a successful international presence. While challenges like taxes, logistics, and competition exist, careful planning and regular monitoring will help you navigate them effectively. Expand step by step, starting with one market before scaling to others, ensuring your business thrives globally.