Sell on Amazon.de – SWOT Analysis

Amazon.de -SWOT analysis

Amazon is the undisputed leader among online stores in Germany, Austria and Great Britain.
If you are selling on Amazon UK, you may want to consider extending your offer to Amazon.de.

Over 40 million buyers and over 30 billion euros in annual turnover – these are the amazing numbers that Amazon.de can boast of. Amazon.de opens up amazing opportunities for increasing revenues and securing finances, even in the event of a national economic crisis during or after pandemic.
So how do we prepare to start selling on Amazon.de? As with any business, we need to apply reliable SWOT analysis.

STRENGTH

  • Business scale and sales range
    Amazon is currently the largest e-commerce platform in the world. Amazon.de has as much as 62% share in the turnover of the entire German e-commerce market

WEAKNESSES

  • Irish VAT
    Our 23% VAT rate works against Irish companies. When selling products on the German market, where VAT is 19%, we must raise prices to achieve a good result.
  • Shipping Time
    It is obviously due to geographical reasons. Goods from Ireland need more time to reach customers from Germany. Amazon does not make life easier for us – if we register as a store from Ireland, then the system automatically forces the setting of a longer shipping time. We can use Amazon Fulfilment service.
  • Higher returns costs
    The same as for shipping goods to the customer. Most often, the seller bears the cost of return shipment.
  • Lack of trust
    Unfortunately, a German customer will naturally trust a local store more than a similar European store
  • German language needed for customer service

OPPORTUNITY

  • Over 40 million customers
    This number can be dizzy, and it doesn’t even include other Amazona.de customers from neighbouring countries like the Netherlands, Austria or Scandinavia. Amazon.de is power – over half of Internet users start shopping with Amazon’s search engine. Google is not for them the first choice of product search.

THREATS

  • Generous but demanding customer
    If we follow the orders in detail and act in accordance with Amazon’s regulations, we have nothing to fear. Remember, however, that Amazon has stringent requirements for sellers. If you stumble, you’ll even risk temporarily locking your account and freezing your money. What can affect this? Even sending parcels that do not comply with the order, deadlines or errors in addresses. Do not forget that customers can evaluate the seller at any stage of the order. Unfortunately also negatively.

Despite a few cons, we should see Amazon.de as a huge opportunity.
I would focus on meeting all Amazon.de requirements and would try to eliminate all weaknesses.

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