5 key questions before starting to sell on Amazon

Amazon
Yes, the current world of e-commerce is dominated.
Yes, it has great potential.
Yes, it helps reach millions of customers.
Yes, the road to it and already inside of it is bumpy.

There are many questions, but below I present to you those that are critical to have clarity regarding the direction of Sales on Amazon. Regardless of whether you are the CEO, an e-commerce specialist, whether your brand is present in 20 countries or just in the local market. Before you hastily move forward, please read the following carefully and consider whether you and your business know the answers to these questions and thus, whether you know the purpose of your journey and whether you know your way to get there?

Let’s get started!
1) Is Amazon even a market for my products?
This is probably the most common question we hear from those who are faced with the choice of defining their e-commerce strategy, but also product development plans, exports, expanding distribution channels, or undergoing digital transformation of their business.

Let’s look at the e-commerce market in numbers by comparing Poland to other countries in the European Union where Amazon is present. The comparison is supported by data from E-commerce Europe reports https://www.ecommerce-europe.eu

There are several key data points that you should take into account when making the decision regarding whether Amazon is the right place for your products.

• Market size. If e-commerce is the market you are betting on in your development strategy and the basis for this decision was the Polish market, its potential and growth, see how this relates to other EU countries. The UK e-commerce market is nearly 19 times larger than the Polish one, the French market is nearly 10 times larger, and the German market is 6 times larger.

• Demographics. If your products are quite niche and you need broad outreach, statistically in France and the UK you have twice the chance of finding customers for your products. Germany, with a population of 82 million people, opens a market that is 2.15 times larger than Poland.

• Leading e-commerce platform. Among the 3 largest e-economies in Western Europe, Amazon holds a dominant market position, thus aggregating the majority of the entire European e-commerce within 3 domains – Amazon.de, Amazon.fr, and Amazon.co.uk.

• Perspective. This is the most important part. The Polish e-commerce market is growing at a rate of 25% year-on-year. Well done us – that’s a staggering pace. However, let's look at the baseline values. Poland, growing at 25% from EUR 9.3 billion, adds about EUR 2.33 billion. At the same time, Germany, growing by 9.1% from EUR 53.6 billion, adds about EUR 4.88 billion, while the UK adds about EUR 25.5 billion. Considering GDP per capita growth and disposable income, catching up with these economies through Polish e-commerce from the current perspective is practically impossible.

The above data should help in making a decision to the question "Whether?" The answer should take into account the horizon of years ahead, the development of your offerings, investments in the brand and its presence in various countries, and not just here and now.

2) What are my business goals on Amazon?
At first glance, an obvious question – most will answer: sales. However, much depends on the profile of the company.

I am a manufacturer and have my own brand.

Amazon can help build awareness and sales, but it can also harm if you don’t have control over your offerings.
– Check what is already on Amazon (number of listings, presentation, prices, sales).
– If there’s little: great – register the brand, build content, and choose a model (FBA/FBM/Vendor).
– If there’s a lot: “adopt” your offerings under the brand umbrella, conduct an audit, optimization, and pricing strategy vs. the traditional channel.

Lack of control = harder negotiations with offline networks (the first thing they will do is check your offerings on Amazon).

I am an OEM manufacturer.
Options: create a separate brand on Amazon (changing product/communication/prices), develop the market together with the client under their brand, or sell “no name” (risk of quick copying and competition entry).

I am a distributor of foreign brands.
Arbitration offline/online. Pros: quick start, no content creation, sales from day one. Cons: low margins – constant cost control necessary; check restrictions in contracts (online/cross-border).

I am an importer.
Goals: optimization of the supply chain and shortening “product to market.” Advantages of FBA: deliveries straight from suppliers to FBA, no need to build your own warehouse (especially seasonal items), no handling of retail orders on your part. Amazon will quickly verify the product and allow you to plan cyclical, smaller deliveries.

I am an artisan.
Handmade is growing. Amazon as a medium provides immense reach – even a fraction of conversion with millions of visits (e.g., amazon.de: hundreds of millions of visits monthly) can lead to real sales.

3) Is my organization prepared for Selling on Amazon?
Check operational/system/product/formal readiness:

– ERP/CRM for B2C,
– certifications, language labels, category requirements (unlocking/certifications),
– VAT in the country of storage (FBA), local regulations (e.g., LUCID in DE),
– human resources for service and sales development.

4) What offer should I choose?
Exclude what you cannot sell (IP of other brands, dimensions/fragility, prohibited/dangerous, clearance items).
Select products based on data: size and seasonality of the category, competitiveness, your USP and margins.
Do not rely on popularity in Poland – preferences and price standards in Amazon markets are often different.

5) Who should I partner with on the way with Amazon?

I use my own team.
Possible, but Amazon is complex and dynamic. Ensure resources, time, and training (PPC marketing ~ complexity of AdWords; customer service, FBA, reporting – separate "modules").

Outsourcing.
Faster and often cheaper in the long term if you choose a partner who delivers on goals and understands your business.

Steve Jobs used to say, “The whole world removes itself from the path of a man who knows where he is going”. First, set a conscious goal, answering honestly the above questions. If you have them – great. Let’s go.

Do you feel lonely in this? We would be happy to accompany you.

Share your dilemmas in the comments – it will also help others. Be part of the Go2Market Community.

Happy (Strategic) Thinking,
Go2Market Crew.