Key takeaways
- Match the product to the market.
- Compare net margin, not fee percentages.
- Score demand, cost, compliance and logistics.
- Pilot one market with clear review criteria.
Start with your product
Not every product suits every market. Consider size, weight, regulation, cultural fit and price level. A product with simple compliance and light weight is easier to test abroad than a regulated or bulky item.
Estimate demand and competition
Use marketplace search data, category research and competitor analysis to estimate demand and price levels in each candidate country. Look at how many established competitors there are and how strong their reviews are. Treat estimates as ranges.
Compare fees fairly
Fee comparison requires like-for-like inputs. Use each marketplace's current fee schedule, and convert size tiers, units and currency carefully. Include referral, fulfillment, storage and returns, plus advertising expectations. Compare net margin per unit rather than fee percentages.
- Referral and fulfillment fees
- Storage and returns costs
- Taxes and duties
- Advertising intensity
Evaluate taxes and compliance
Registration, VAT or GST, import rules, labeling and product certification vary widely. Estimate the effort and cost of compliance for each country, and consider whether you need advisers or partners.
Assess logistics
Compare delivery options, transit times, customs complexity and the cost of returns. Consider whether you need local stock to compete.
Build a scorecard
Score each marketplace from one to five on demand, competition, margin, compliance effort, logistics and strategic fit, with weights that reflect your priorities. Discuss the scores with your team and test assumptions.
Plan a pilot
Choose one marketplace and design a pilot with a limited product range, a budget and success measures such as sales, margin and operational issues. Set a review date and exit criteria.
A worked example
A seller scores three markets. One has high demand but heavy compliance work, another has lower demand but easier logistics. After weighting margin and effort, they choose the second for a pilot, planning to enter the first when they have resources.
Common mistakes
Typical mistakes include choosing by market size alone, comparing fee percentages instead of margins and expanding to several markets at once. Keep decisions evidence-based.
A reusable scorecard template
Create a table with one row per candidate marketplace and columns for demand estimate, competition level, expected net margin per unit, compliance effort, logistics complexity, language needs and strategic fit. Add a weight for each column and a note explaining each score.
Review the scorecard with your team and update it as you learn. It becomes a living record of why you chose or postponed each market, which is valuable when circumstances change.
Warning signs to watch for
Be cautious if the only reason to enter a market is that it is big, if margins disappear once local fees and taxes are included, or if you cannot service customers properly in their language. Another warning sign is dependence on a single partner you cannot easily replace.
Better to postpone than to launch into a market you cannot run well.
Frequently asked questions
How many marketplaces should I enter at once?
Most sellers do better entering one at a time.
Where do I find current fees?
In the fee schedule for each marketplace in Seller Central.
This guide is general information. Amazon's fees, policies and program rules change and vary by marketplace, so confirm current details in Seller Central and, for tax or legal questions, with a qualified adviser.