This post is written by international seller and teacher, Steve Sawyer. He shares how Brexit (the UKs recent vote to leave the European Union) will impact his business and strategy.
“Movement is Life!” – World War Z
In the next few days and weeks we will hear a lot of the “sky is falling” from many that do not have a horse in this race. They will be quick to point out all the negatives and possible worst case scenarios that reinforces their fearful decision not to trade overseas.
The truth is those who have only one option are the greatest risk takers of all. Staying only in the US Amazon market creates an ever-closing cycle of competitive demise that forces you to take less margin for more work. Change or movement is the only way to survive even in this safe marketplace. Information will be the true weapon in this battle. International Amazon marketplaces have fewer sellers with less experience. Accessing a synergistic hub such as Scanner Monkey, will allow us to harness US experience and drive it into the European Market.
As a seller in the UK and European Amazon marketplaces, we love the fact that many will hold off becoming competitors because of the “concern” and perceived high hurdles. We will continue to leverage our strengths and have increases in sales and margins across multiple platforms. If one market closes, we move to another. Currency inverts, we ship the other direction.
Light, nimble traders with low asset investments will reap sizable rewards as they always do in these marketplaces. FBA (Fulfillment by Amazon) is the perfect leverage point with minimal overhead costs except a little paperwork and inventory exposure of 30-60 days.
What are we going to do?
Rather than give advice, I am going to talk about our strategy.
Our goal is to maximize our footprint and options with as little investment as possible while maintaining solid margins. Our goal is to be ahead of the mob as this drama unfolds.
- Register for the VAT and establish accounts with prep and pack companies in Germany. Using our International Arbitrage Course staff accountant, the cost will be a little time and gives us the ability to ship into Germany and use FBA to sell products in under 4-5 days.
- Research registration for the VAT and set up accounts with prep and pack companies in each of the other three Amazon marketplace countries outside of the UK and Germany (France, Spain and Italy).
- Register for the VAT in Ireland since they are the likely candidate for the “NEW” UK for Amazon to hit the EU. With Amazon’s commitment to MCI and Pan EU, this is a likely place for the EU growth to happen. Cost is only the time to register and file 0 returns.
- Continue to increase products in both the UK and EU marketplaces.
- Monitor margins through re-pricers and continue to sell daily in to the European markets.
- Be part of a mastermind group of like minded EU Amazon FBA sellers to pool information and solutions. Like any journey into the wilderness, there is strength in a small dedicated group.
- Work on creating a footprint in other developing Amazon marketplaces such as Japan.
Change is inevitable. Those with timely information and the courage to act will be the ones to.