by Ariful | May 22, 2020 | Business
Amazon is the biggest eCommerce platform in the world. With a lot of factors to consider, it is no surprise to see Amazon businesses fail.
Top Reasons why Amazon Businesses Fail
It’s the preferred platform of many entrepreneurs. Even though there are countless sellers who can attest to eCommerce as a fundamental factor in their increased profit, many still fail to operate their businesses successfully.
A large fraction of eCommerce business failures consists of micro-businesses. Owners of these businesses are usually forced to face a disheartening predicament once they realise that their company isn’t earning as much as it should.
But why exactly do businesses fail despite the accessibility of eCommerce platforms? Read on to find out.
Low Competition
The biggest challenge for a business is competition. With so many other companies selling the same products and offering the same services, it can be difficult for you to stand out. One solution to this is to expand your services and market your products in Europe.
Amazon is available to 250 million people in five of the biggest European countries alone.
This makes Europe an ideal place to market your products because not only is it home to a growing population, but Europe is also only seeking services from 200,000 sellers. It is a significantly small portion of the total number of sellers worldwide — which is estimated to be around 2 million.
Most entrepreneurs shy away from expanding to Europe as they think that sticking to the Western market is a better option. Since the United States and the rest of North America are bigger countries, many believe that it’s home to a greater population — which they believe can help them sell their goods more successfully.
However, companies who expand their business in Europe are proven to be thriving more in terms of profit compared to those who remain to sell in the US and its neighbouring countries.
One thing that needs to be considered before expanding to Europe is the cultural difference between the US and the European market. Customers and their expectations and terminologies vary from one country to another. There are minor differences in the language and traditions that should be addressed.
If you plan to sell sneakers in the UK, labeling them as “trainers” would be more suitable as it’s the common and more recognised term – these small details have a significant effect on the sale of products.
Customer Service
It may seem unimportant to many business owners, but customer service can significantly grow your brand in many ways.
Even if you are selling a unique or excellent product, there are still instances where some of the customers will face a problem regarding it – and it’s the responsibility of your customer support to get those issues resolved efficiently; because of the lack of customer support can tremendously affect your reputation.
Poor customer service can get you negative reviews. The Amazon algorithm is prompted when it receives weak feedback regarding your products, which can result in the platform stopping the promotion of your listings – this is detrimental in terms of being ranked organically, or defeating the PPC competition.
If your product is not listed on Amazon organically, it will never show up in the searches made by customers for a similar product. Therefore, the chances of your product getting sold decreases instantly.
Product Reviews
It is evident that many failed businesses on Amazon have poor ratings given to them by customers. Customer feedback is paramount to your business because over 90% of people buying on Amazon wouldn’t purchase an item with less than a three-star rating.
Having great customer service gets you an immense amount of excellent feedback which can positively impact on your sales. This can result in Amazon promoting and prioritizing your products which can get you more views.
Statistics show that the buyers are more interested in spending on a product that comes on the first page of their search than the others.
Every entrepreneur aspires to own a successful industry. With the availability and accessibility of selling on Amazon and other eCommerce platforms, it’s vital that you provide your customers with a convenient way to know more about your products. Because providing this type of service can give you positive reviews in return.
In Conclusion
While it may seem like a daunting task to answer every inquiry from everyone, companies like Sterlinx have found a solution that can aid in the improvement of your customer service.
Sterlinx can help your business grow as an eCommerce seller because they provide your business with its own virtual call centre. Check Sterlinx Global to get all the best solutions to help you grow your business. Your virtual call centre can answer phone calls and respond to emails sent to you by your customers. You no longer have to check them one by one just to make sure that you will receive great feedback – because Sterlinx ensures that you do.
by Ariful | May 10, 2020 | E-Commerce
For businesses, it is important to venture out to new markets to gain more profit. In expanding your business, you should consider selling on Amazon in Europe.
Why must any business consider selling on Amazon in Europe?
Expansion is crucial for any business.
It is evident that companies who choose to expand their services display growth. Thanks to the rise of technology and its influence on our daily lives, e-Commerce platforms are acting as a gateway to the internationalisation of businesses.
Europe has been proven to be one of the biggest marketplaces for countless businesses. E-Commerce Platforms like Amazon provide an excellent opportunity for every merchant to broaden their customer base in countries covered by Europe. But apart from internationalisation, there are other benefits that come with having your products and services available on Amazon and its Marketplace.
There are many reasons why expanding your business in Europe with the help of e-Commerce platforms is a great option. Here are a few of them.
Low Competition
The biggest challenge for a business is competition. With so many other companies selling the same products and offering the same services, it can be difficult for you to stand out. One solution to this is to expand your services and market your products in Europe.
Amazon is available to 250 million people in five of the biggest European countries alone.
This makes Europe an ideal place to market your products because not only is it home to a growing population, but Europe is also only seeking services from 200,000 sellers. It is a significantly small portion of the total number of sellers worldwide — which is estimated to be around 2 million.
Most entrepreneurs shy away from expanding to Europe as they think that sticking to the Western market is a better option. Since the United States and the rest of North America are bigger countries, many believe that it’s home to a greater population — which they believe can help them sell their goods more successfully.
However, companies who expand their business in Europe are proven to be thriving more in terms of profit compared to those who remain to sell in the US and its neighbouring countries.
One thing that needs to be considered before expanding to Europe is the cultural difference between the US and the European market. Customers and their expectations and terminologies vary from one country to another. There are minor differences in the language and traditions that should be addressed.
If you plan to sell sneakers in the UK, labeling them as “trainers” would be more suitable as it’s the common and more recognised term – these small details have a significant effect on the sale of products.
Increased Potential for Profit
Another advantage of marketing your products on Amazon is you can target the European audience which can give you the opportunity to sell at a higher profit.
Because Brexit has brought a big change in the markets of the UK and the rest of Europe, the retail sales profits have increased sharply in all the European markets — in the UK, Amazon was the most used platform.
A recent study shows that an average shopper in the UK tends to spend more annually compared to US shoppers – which makes Europe a great place to expand because a customer base that’s 230 million greater than the US is evidently a bigger market.
That’s also why Amazon is the preferred e-Commerce platform because it can show you the true potential of your business with its worldwide coverage.
A Growing Market
Since the fall of the US market in recent years, merchants have been seeking a change that can guarantee a steady profit.
This makes the European market a great alternative because aside from the United States’ decline, there has also been a steady growth rate of 18% in the UK and European online markets; this clearly proves the potential that the Amazon market has.
Stepping into a growing market is always beneficial. Selling your goods to a demographic that’s still developing is an excellent strategy that can help you increase the value of your brand.
One of the ways that you can get a competitive advantage in the online marketplace is to gather reviews from your customers. Selling your products before the market fully flourishes gives you the advantage of getting better reviews than your competition – which increases your chance of selling exponentially.
Amazing Amazon Support
Amazon is known worldwide for its reliable and efficient support for both merchants and customers. That’s why it is the most popular e-Commerce platform all over the world.
Amazon offers a lot of tools and round-the-clock support for merchants to help them establish their business online. This is vital for every company that sells online because the assistance provided by Amazon can help scale the business quickly and more effectively.
For customers, 24/7 support means reliability and trust. As online shopping is still not trusted widely, only valid customer service will make customers feel less reluctant to place an order.
This is something that Amazon prioritises, and they are always willing to help the business and provide a smooth transaction as often as possible.
Most sellers currently have a fear of worldwide expansion when they think about cultural barriers, extra taxes, technical complications, and other legal obligations. These factors may look intimidating, but companies like Sterlinx can provide a wide range of services from our Professional Lawyer and Amazon Accountants that can help you with your worries when it comes to expansion.
If you wish to start expanding your business so you can sell and offer your services and products to the European market without all the trouble that usually comes along with it, contact Sterlinx so you can book a consultation that can address your concerns.
by Ariful | May 10, 2020 | US Updates
Benefits of having an EORI Number for your Business
It allows you to freely sell your goods because your business is recognised by the law. In European countries, registering your business gives you a unique identification number called the EORI number, or Economic Operators Registration and Identification number.
Having an EORI number is an essential part of your business registration. Because every business — no matter how big or small — requires the completion of registration, and having an EORI number authenticates your business.
The EORI system was established to implement the security measures introduced by Regulation (EEC) No. 2913/92, as amended by Regulation (EC) No 648/2005 of the European Parliament and Council.
The European Commission notes that traders themselves have been calling for a standard numbering system that is unique to each individual. EORI is also implemented so it can also serve as proof that your business is valid throughout the European Union.
What is an EORI Number?
An EORI is a unique number that you can use when dealing with customs and the authorities. If you plan to sell your products in any of the European nations, you need to have an EORI number so you can import your items into any of the European nations.
EORI is obtained from the customs of your country before starting a business in Europe. It signifies that you are eligible for trade and commerce in Europe.
Whether it is an entry or an exit summary, you are required to lodge a customs declaration, especially if you are a brand, you are an authorised economic operator.
Without an EORI, it will be difficult for you to complete the entry and exit of your products from the EU because your goods will end up in the hands of the customs department of the concerned nation instead.
This isn’t a wise business practice as it can leave you with a lot of loss. That’s why many entrepreneurs who wish to secure their business from legal issues make it a priority to get an EORI before starting their e-Commerce business on the Amazon Marketplace.
The EORI number is issued by the European country where you are importing your products – and it’s honored anywhere in Europe. Even though the UK has exited the European Union, the EORI is still effective there.
Regardless if you have a VAT or not, you can apply for an EORI number; you can even apply for one online. However, the process requires proper attention.
It is important that you keep your application free from any mistakes because even the slightest of errors can lead to rejections – and that’s where Sterlinx can help you.
Sterlinx is known to have trained Professionals Amazon Accountants and Lawyers who are at your service in every task you’re required to finish and we will keep your business running smoothly while you focused on planning your expansion to Europe.
Contact us and our experts who are experienced in filing thousands of EORI and other registration files that can help you avoid common errors.
