According to current data, Amazonhas more than 300 million active users and more than 200 million Prime users. These millions of users are spread across different markets around the world. While some markets are taking the biggest slice of the pie, others are just starting to grow. These markets differ from each other in many ways, from customs laws, buyer base, language and competitive structure.
One of the first decisions before starting to operate on Amazon is to find the right marketplace. The subject of this article will be about Amazon marketplaces. Thanks to this article, you can find the right market for you by getting to know Amazon markets and countries.
Amazon US Marketplace
With a population of nearly 330 million, the United States has been the world's most vibrant market since World War II. According to data from the US Department of Commerce, the US e-commerce volume amounted to 791 billion dollars in 2020. In addition, US e-commerce sales amounted to 14.0% of total retail sales in 2020. North American countries account for 60% of Amazon's revenue pie, most of which comes from the United States. Therefore, we can say that the United States is a competitive market in terms of e-commerce due to the attractiveness of the pie. From a strategic point of view in terms of sales, it is very important to provide detailed information about the products in a competitive market like America and to construct the advertisements correctly. It is also a market where prices are low due to competition. For this reason, when dropshipping from Amazon to Amazon, it usually uses the American market as a source of supply.
Amazon Canada Marketplace
The e-commerce sales of Canada, whose official languages are French and English, amounted to 46.6 billion Canadian dollars in 2020. In 2020, e-commerce sales accounted for about 6% of all retail sales in Canada. Approximately 10% of online retail sales in Canada are through Amazon's online platform, with the largest e-commerce site being amazon.ca. Canada is a much smaller market than the United States and competition is lower. In addition, customs limits for FBA are much stricter.
Amazon Mexico Marketplace
With 130 million inhabitants and Spanish as its official language, the Mexican market is an important market, and Amazon's activity started in 2013. Amazon.com.mx made a significant leap in 2017, doubling its retail sales compared to the previous year and increasing its e-commerce volume to over $20 billion. Today, this figure stands at over $25 billion. The Mexican market is similar to the Turkish market with its demanding customers and not very high income levels.
Amazon Brazil Marketplace
Brazil, which is called the sleeping giant e-commerce market, is the 12th largest economy in the world with a population of more than 200 million and a gross domestic product of 1.445 trillion dollars. Today, Brazil's e-commerce volume is around 25 billion dollars. Unlike the big marketplaces in the Americas, Mercado Libre, not Amazon, takes the lead in Brazil. Amazon.com.br increases its popularity day by day with a market share of around 6%. The Brazilian market has some exceptions. One of them; Brazilian Amazon sellers prefer wholesale and handmade over private label and other Amazon business models.
United Kingdom Market
With 66 million inhabitants, it has the 3rd largest trade volume after China and the United States. Amazon.co.uk is the UK's largest e-commerce platform, with a volume of more than $32 billion. Amazon started operating in the UK market in 1998 after the US market. In 2002, the Amazon UK marketplace was opened and in 2007, FBA services were provided to marketplace sellers.
General European Market
The European market is mainly composed of 2 parts. The first one is the UK market mentioned above. Due to the possible changes that may occur after Brexit, we wanted to separate the UK and the European market. If you are going to do business in connection with Turkey, Europe is an advantage in terms of proximity, but some difficulties may be encountered due to the fact that English is not the main language of most of the countries.
Apart from the UK, the European market includes Germany, France, Italy, Spain, Belgium, Poland, Sweden and the Netherlands. We can easily say that Germany is the largest of these markets. Amazon.de is the largest e-commerce channel in Germany and is ahead of its closest competitors in the country.
Another important market in Europe is France. France has an e-commerce volume of more than 121 billion dollars. Amazon.fr is the largest e-commerce network in the country. The largest seller group in the French market is from the UK with 25%. Only 9.5% of these sellers are from France.
In Italy, where Amazon started its operations in 2010, the e-commerce volume is around 24 billion dollars on average, and this figure is expected to reach around 28 billion dollars in 2024. UK sellers account for 25% of the sellers in the Italian market. Amazon.it leads the country in terms of e-commerce volume and is 5 times ahead of its closest competitor.
In Spain, another Mediterranean country, Amazon started its operations in 2011, but amazon.es is the leader in this respect in Spain. With the exception of the limited Dutch market, Amazon Spain has the lowest amount of traffic of all European markets.
Saudi Arabia Market
E-commerce has become more popular in Saudi Arabia than in other countries in the Middle East. With the increase in digitalization and internet usage, the country's young population is more interested in e-commerce. The country's rulers saw the potential in the e-commerce market in the country and passed an e-commerce law. It is aimed to increase the share of e-commerce in the retail sector to 80 percent by 2030. Amazon acquired souq.com in Saudi Arabia and renamed it Amazon.sa. Amazon.sa is now the largest online shopping site in the Middle East.
Japan Market
With 127 million inhabitants and an average e-commerce volume of $185 billion, Japan is the fourth largest e-commerce market in the world. Amazon started its operations in Japan in 2000 and announced the Amazon Japan marketplace in 2002. In 2008, FBA service was started to be offered to marketplace sellers.
Amazon.co.jp is still the most visited e-commerce site, even though it faces serious competitors within the country.
Australian Market
With 25 million inhabitants, the e-commerce volume of Australia, an island nation, is estimated to be more than 36 billion dollars. Amazon launched its marketplace in this country in December 2017 and started offering FBA services to marketplace sellers in February 2018.
Amazon.com.au has not been in business for very long, but its turnover is increasing day by day.
United Arab Emirates Market
The UAE is the largest marketplace in the Middle East with a population of nearly 10 million. Amazon started its operations in the UAE by acquiring Souqin 2017 and rebranded it as amazon.ae. Soon after, it started offering FBA services to sellers. The UAE's central location in the Middle East makes it an ideal place to export to other countries in the continental region.
Backed by its modern infrastructure and free trade zones, the UAE is perfect for overcoming the major challenges associated with selling online using a dropshipping model (dropshipping) .
Singapore Market
Singapore, where 4 different languages are spoken due to its ethnic diversity, has an e-commerce market revenue of nearly 10 billion dollars with a population of nearly 6 million. Amzon.sg became operational in 2019 and started to offer FBA services to sellers. 25% of Amazon.sg sellers are from China.
In the light of all this information, when we look at the countries where Amazon operates, we can see that it is number one in almost every country. Amazon will be an inevitable address for those who aim to do e-commerce in the international market.
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