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How to run a cross-border e-commerce business
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If you are looking into whether is it worth getting into cross-border e-commerce, whether it is still profitable, or how much money you need to invest in the early stages, then you may find this helpful!
Starting a cross-border e-commerce business requires considering many factors, but they are not insurmountable. Many major sellers also started with small storefronts selling just one or two products, and gradually grew stronger through firm belief and the smart use of scientific, efficient methods for selling on Amazon. It’s not too late if you want to give it a try. You can use the following 6 steps to start your cross-border e-commerce, to help you explore ideas, clarify your direction, and smoothly begin your cross-border selling journey.
*The information is for reference only, and Amazon does not guarantee any specific results.
Overview
Step 1: What products should you sell, and how should you produce and source them?
For beginner sellers, whether they can develop and source competitive products is not only a strategic decision-making process, but also a hands-on practice in gaining a deep understanding of the target market, uncovering potential business opportunities, and building an effective supply chain. Therefore, before you officially start selling on Amazon, you need to think about what products to sell, whether there is a market for them, and how to produce and source them.
Determine the product direction and market potential, i.e. what products to sell.
No matter how creative an idea or product may be, it could fail without the target consumers. First, you need to thoroughly research and identify your target customer group and understand their needs and preferences. This involves not only direct research on potential consumers, but also analysis of existing market products, so as to identify gaps in the market and opportunities for improvement.
You can determine whether a product is competitive enough by looking at its sales, customer reviews, and pricing strategy. Additionally, you can communicate with potential customers, to find out whether the product addresses their needs and pain points, and whether it has the target audience.
Tips & Reminders
When considering the product selection, there are three key things to focus on: what makes a good product selection?What products are difficult to sell?How to avoid restricted and non-compliant products?
We have a straw cup product with an externally attached straw that cracks easily. In fact, this is quite common in the category, and after noticing repeated buyer feedback, we quickly improved the lid design based on user needs. This has also become a differentiating selling point that sets us apart from other products.
Zhejiang Everich Tomic Household Products, Head of Operations, Sue
Tips & Reminders
Product opportunities vary across countries or regions and market segments. Amazon continues to release global consumer trends and product selection reports, product selection guides for different Marketplaces and categories, and hands-on case studies for official product selection tools, to help beginner sellers take the first step in product selection and listing.
Launch your sourcing plan: how to produce or obtain products?
After deciding what to sell, to whom to sell, and whether the product has the market demand and profit potential, you need to start thinking about where to manufacture or source the product.Establishing a stable supply chain and developing quality control mechanisms is essential to ensure that your products can continue to meet market demands. Here are two main ways for cross-border e-commerce sellers to obtain products:
- Distribute existing products
If you want to get started faster and avoid spending too much money and time on product development upfront, you could distribute existing products. All you need is to contact the right vendor, order the products, and ship them to your business or storage location. - Sell branded products
If you want to build a brand, then the best choice is work directly with a manufacturer to produce products. Not only does this give you more potential for growth, but you can also gain additional exposure by selling branded products, as well as stand out from the competition!
📝 Pro Tips: By registering a brand on Amazon, you will get brand and product exposure opportunities that other sellers don’t have, helping new storefronts gain traction quickly, drive traffic, and generate orders.
Step 2: How much does it cost to start a cross-border e-commerce business?
If you have the right funds ready for each step, you can plan your budget wisely and build a solid foundation for your future selling operations. The main costs of cross-border e-commerce, from registering your account to selling products, include:
*Average order value: the average selling price of all ASINs you sold during a fixed period (excluding discounts).
Video
05:44
What costs do you need to consider for cross-border e-commerce?
Want to learn more about how much it costs to start your cross-border e-commerce business on Amazon?Please click the video to watch.
Step 3: Which Marketplace should you choose to open your store?
There are many channels for cross-border e-commerce, and choosing the right one to start your cross-border e-commerce business can often help you get twice the results with half the effort. You can choose a self-operated website and run your own online storefront, sell products on e-commerce websites such as Amazon, or choose to pursue both at the same time.
Self-operated website
If you choose a self-operated website, you need to independently manage the full operational process, including product supply, warehousing, pricing, marketing, logistics, and after-sales services. In the early stages, you need to invest relatively high operating costs and human resources. However, sellers can freely set pricing strategies, build their brand image, access customer data, and have relatively controllable profit margins.
Third-party open websites
If you choose a third-party open website, you will have ready-made, diverse, and systematic supporting services, as well as a variety of operating tools, with higher conversion rates, lower cross-border selling risk, and a setup that is friendly to beginners in cross-border selling. In addition, sellers deal directly with consumers, control every step themselves from sourcing to after-sales services, and have pricing power.
If you start a cross-border e-commerce business on Amazon, you can not only reach hundreds of millions buyers, but also customers in both the business purchasing and retail sides. In addition, Amazon also provides new sellers with support at every stage and a range of benefit policies, including logistics, operations, and finance!
When you sell on Amazon, you can enjoy:
A large active user base
Amazon has opened 19 overseas Marketplaces to Chinese sellers, reaching hundreds of millions of buyers worldwide.
Comprehensive operational support
Amazon has 400+ fulfillment centers worldwide, as well as dozens of official Amazon services and tools.
Diverse business models
A new one-stop cross-border e-commerce B2B model, where one account can transact with buyers on both the retail and business purchasing sides.
New Seller Incentives
Get refunds on sales over US$250,000 across multiple Marketplaces, enjoy multiple real cash benefits, and reduce trial-and-error costs!
Rich learning resources
You can learn how to operate your Amazon business and succeed through “free online self-study” (free tutorials available 24/7).
Step 4: How do you choose cross-border fulfillment, and what factors do you need to consider?
An essential part of the cross-border e-commerce business link is cross-border fulfillment!Cross-border fulfillment refers to the process of transporting goods from one country or region to another across borders by sea, land, or air, and completing international product transactions through local delivery. The product is shipped from the seller, goes through the processes including transportation, storage, packaging, sorting, customs clearance, etc., and is finally delivered to the buyer. This process involves three stages: first-mile logistics, warehouse management, and last-mile delivery.
Many beginner sellers don’t know how to handle cross-border fulfillment. If you choose to sell on Amazon, you have two fulfillment options to choose from, and Amazon also provides corresponding support:
Delivery by Amazon (FBA)
Sold by the seller, delivered by Amazon. You only need to send your products in bulk to an Amazon fulfillment center. Amazon will take care of the remaining fulfillment steps and provide after-sales services, helping you save labor, materials, and costs. If you use the FBA service, you can also reach a large number of Prime members, enjoy 1-Day/Two-Day shipping, win the “Buy Box,” and get professional customer services 24/7.
The Supply Chain by Amazon Solution is an integrated, automated supply chain solution launched by Amazon for Chinese sellers that covers all sales channels, including three core stages: first-mile logistics, warehousing and distribution, and last-mile delivery. You can entrust all of your product fulfillment demands to Amazon and focus more on product production and other operations.
Merchant Fulfilled Network (MFN)
You can also choose to ship orders yourself and complete the entire process of delivering products to international buyers. This includes shipping directly from China to local consumers, or shipping products to overseas warehouses first and then shipping them from those overseas warehouses to local consumers.
For MFN sellers, Amazon also provides a solution that can simplify fulfillment operations, i.e. the “Buy Shipping” service. You can directly select suitable third-party carriers in Seller Central to deliver products to buyers more conveniently and cost-effectively, or you can contact third-party carriers yourself to deliver products.
Video
08:16
Cross-Border E-Commerce Fulfillment Starter Guide
If you’d like to learn more, click the video to read the Amazon Cross-Border E-Commerce Fulfillment Starter Guide.
Step 5: What information do you need to prepare before selling on Amazon?
After you determine the products you want to sell, your target customers, and your sales channels based on your preliminary research and planning, you can start preparing the information you need to open your store and planning your costs and schedules.
Information Preparation
The following registration information must be provided. If the information is incomplete or false, registration cannot be completed. Since it takes a long time to obtain a business license, we recommend that you apply for certification with the relevant authority as soon as you have confirmed your company name and legal representative.
1) A color scanned copy or color photo of the company's business license
● Companies in Mainland China: corporate business license
● Companies in Hong Kong PRC: Company Registration Certificates and Business Registration Regulations
● Companies in Taiwan China: Limited company establishment registration form, registration form for the establishment of a joint-stock company, registration form for changes to a limited company, registration form for changes to a joint-stock company, approval letter for sole proprietorship registration, approval letter for partnership business, limited partnership establishment/change registration form, unlimited company establishment/change registration form, registration form for establishment of/change to a limited partnership, registration form for establishment of/change to a closed joint-stock company
Note: These documents and certificates must be issued in Mainland China, Hong Kong PRC, or Taiwan China and must have more than 45 days before they expire. Also, please make sure the company registered on the business license is active. You can check this information in the National Enterprise Credit Information Publicity System.
2) Color scanned copy of the legal representative's ID card
● The name on the ID card must match the name of the legal representative on the business license
● The name on the ID must match the name on the registered Amazon account exactly
● Sellers in Hong Kong PRC and Taiwan China can provide the passport information page
Note: Make sure these document and certificates are issued in Mainland China, Hong Kong PRC, or Taiwan China, and that the ID card is still valid.
3) A credit card that can be used for international payments
● VISA or MasterCard; we recommend VISA
Note: ① You need to confirm that payment in the marketplace currency is supported. If you have storefronts open in multiple Amazon Marketplaces, we recommend to use a credit card that supports payments in multiple currencies; ② confirm that your credit card has not expired, has sufficient available credit, and has no restrictions on online or mail-order payments.
4) Accurate and up-to-date contact details
● Contact person's email address
● Contact person's phone number (it is recommended to enter the phone number of the legal representative)
● Company address, contact number
5) The bank account used to receive payments (choose one from three options)
● Bank account in Mainland China: use RMB to receive global payments and deposit them directly into the seller's domestic bank account in China. For the bank address, select the seller's local bank account in China
● Hong Kong or overseas bank account: use a valid overseas bank account or Hong Kong bank account to receive Amazon sales proceeds in the local currency
● Third-party deposit account: use a bank account provided to the seller by a payment service provider that has participated in the “Payment Service Provider Program.” In this case, select the country or region where the payment service provider opened the seller’s bank account as the bank address.
Note: Your bank account information must be accurate and valid. If you want to receive payments directly in RMB and manage your payments directly in Amazon Seller Central, we recommend to use Amazon Currency Converter for Sellers, which lets you automatically receive payments to your domestic bank account, and is secure, convenient, and transparent.
Pro Tips
Currently, brands are no longer exclusive to a few multinational companies or large enterprises. In light of new opportunities in this era, building a brand is crucial for both beginner sellers and experienced cross-border sellers. By building your own brand on Amazon, you can not only get a full range of brand building and protection tools, but also increase visibility and seller trust, and let more people around the world see your products. If you plan to build a brand on Amazon, we recommend that you also allow 1–2 months in advance to apply for a trademark in your target Marketplace. You can also watch the following video to build your brand more efficiently!
Video
06:58
How to quickly build a brand
To learn more about how to quickly build a brand, please click the video to watch.
Registration Process FAQ
How to obtain a business license to sell on Amazon?Are there any requirements for the business scope?
To register with Amazon, you must have a company business license, and you must first go to the relevant authority to apply for a company business license. For specific procedures and required materials, please contact your local Market Regulation Administration and/or other government departments. You can search in the National Enterprise Credit Information Publicity System.
To sell on Amazon, there are no strict requirements for the business scope on your business license. However, for long-term planning and because some Marketplaces have stricter compliance regulations, such as Europe, we recommend that the business scope you declared is as consistent as possible with the categories you plan to sell in on Amazon in the future
To sell on Amazon, there are no strict requirements for the business scope on your business license. However, for long-term planning and because some Marketplaces have stricter compliance regulations, such as Europe, we recommend that the business scope you declared is as consistent as possible with the categories you plan to sell in on Amazon in the future
The address on the business license does not match the actual business address. Which one should be used?
Any one is fine. However, we recommend to use an address that can receive SF Express deliverables and for which you can provide a bill issued by any utility provider within the past 90 days for water, electricity, gas, or Internet services. Once you completed registration, you can also add a new address in Seller Central. Businesses in Hong Kong PRC, and Taiwan China can use English or Pinyin to fill in the registered address or actual operating address on your company’s business documents.
What are the requirements for the credit or debit card needed to register to sell?Does it have to be credit or debit card of the legal representative?
Please use credit or debit cards that support international payments (Visa and MasterCard are accepted, and VISA is recommended). Make sure they supports the local currency of the destination country or region, have sufficient credit, are within its validity period, and have no payment restrictions. Please do not use virtual credit/debit cards. The credit/debit card holder does not need to be the same as the legal representative, and a personal credit/debit card can also be used for corporate accounts.
What are the requirements for the credit or debit card needed to register to sell?
Please use credit or debit cards that support international payments (Visa and MasterCard are accepted, and VISA is recommended). Make sure they supports the local currency of the destination country or region, have sufficient credit, are within its validity period, and have no payment restrictions. Please do not use virtual credit/debit cards.
Can I use an international dual-currency card with both UnionPay and Visa logos?
We recommend to use a single-currency card that only displays the logo of an international card network, such as MasterCard or Visa. Please make sure the card supports the local currency of the destination country or region, has sufficient credit available, is still valid, and has no payment restrictions. Please do not use virtual credit/debit cards.
What are the bank account options for receiving payments?
You have the following three options (choose one of three):
● Domestic bank account: use RMB to receive global payments and deposit them directly into your domestic bank account. For the bank address, select the seller’s local bank address in China;
● Overseas/Hong Kong PRC bank account: use a valid overseas bank account or Hong Kong bank account to receive Amazon sales proceeds in the local currency;
● Third-party deposit account: use a bank account provided to the seller by a payment service provider that has participated in the “Payment Service Provider Program.” In this case, select the country or region where the payment service provider opened the seller’s bank account as the bank address.
● Domestic bank account: use RMB to receive global payments and deposit them directly into your domestic bank account. For the bank address, select the seller’s local bank address in China;
● Overseas/Hong Kong PRC bank account: use a valid overseas bank account or Hong Kong bank account to receive Amazon sales proceeds in the local currency;
● Third-party deposit account: use a bank account provided to the seller by a payment service provider that has participated in the “Payment Service Provider Program.” In this case, select the country or region where the payment service provider opened the seller’s bank account as the bank address.
HR Preparation
To run a storefront successfully, it is very important to have relevant human resources. Different departments have different responsibilities, and every step is indispensable:
1
Market research
Competitive market trends, target consumer profiles
2
Design and R&D
Features, selling points, costs, and estimated profits
3
Production and assembly
Quality requirements and demand forecasting
4
Transportation and warehousing
Shipping methods and inventory turnover
5
Marketing and sales
Listing maintenance & promotion
6
After-sales feedback
Customer services, product feedback collection, analysis, and customer retention
More importantly, set up an operations function that is independent of each functional department, coordinates the entire business workflow, and works together to achieve business goals!Ideal operations should have four key capabilities. You can use the operations capability advancement pyramid below to check whether your company’s current talent structure matches its current stage of development, and optimize and adjust your team based on the actual situation and needs.
Preparation time
Overall, we recommend that sellers allow 1–2 months to prepare information and get ready to open their store. The earlier you start preparing to open your store, the better!
Suggested time: 1–2 months
Market research and product selection, procurement planning and supply chain establishment
Suggested time: 1–2 months
Information preparation, account registration and review
- Document and certificates to prepare: Business license, bank card, trademark, and more
- Account registration and review: during registration, you may need to submit identity information, and complete identity verification, address verification, and other steps. Some Marketplaces may also require additional information
Suggested time: 1 week
Store setup costs and pricing strategy
Step 6: How can you get orders efficiently after you start selling?
Congratulations! At this point, everything is in place, and you’re ready to start selling on Amazon!Next, you’ll learn how to efficiently manage your storefront after you start selling. Amazon provides sellers with a range of supporting services to help you start your business faster, more easily, and more efficiently, without spending too much time and energy on small operational issues.
In addition, operational activities of a new seller during the first 90 days of a new account are a key period that determines the account’s future performance, known as the Golden 90 Days. Data shows that beginner sellers who made use of Amazon’s powerful operational support system in a scientific way during these 90 days performed better: they got their first order 1 month* faster than other sellers; the annual storefront sales were about 10 times those of other sellers*; and their storefront sales in the second year were about 15 times those of other sellers*.
Therefore, Amazon has also prepared an Operations Guide for new sellers, detailing how to reasonably plan their time and efficiently use tools during the Golden 90 Days of a new account, to drive high traffic and high conversion. You can control the pace of operations according to the actual situation, and use tools to enjoy benefits within the recommended time period.
You can start selling in these marketplaces
Select a marketplace, go and start registering!
While registering for the marketplace, scan the QR code to connect with an account manager and join the group for registration guidance and other support resources!
Data source: *Data is based on the historical data from new sellers. Actual results may vary by account operations. Data is for reference only.
Frequently Asked Questions
How many Marketplaces can I open with one registration now?How is the monthly subscription fee charged?
For beginner sellers, with just one registration, you can open most Amazon Marketplaces: North America (United States; Canada), Latin America (Mexico; Brazil), Europe (United Kingdom; Germany; France; Italy; Spain; Sweden; the Netherlands; Poland; Belgium; Ireland), Japan, Australia, Saudi Arabia, and the United Arab Emirates. The registration process is simple and efficient. With a global selling account, you can get discounted monthly subscription fees, with the total amount not exceeding $39.99. In addition, we also have the India Marketplace. Sellers can register for the India Marketplace separately as needed (a different email address is required). And after the registration is complete, they can also link their accounts to enjoy the monthly subscription fee discount.
Is the monthly subscription fee charged as soon as I register the storefront?
For the first month, you need to pay a $39.99 monthly subscription fee for the Professional Selling Plan. From the second month: if you don’t have any active listings that month, you won’t need to pay this fee for that month; From the month when you have sellable products, Amazon will charge you this fee every month. If you expand your sales to other regions, you will need to pay a total subscription fee of about $39.99 (or the equivalent in local currency) for the Professional Global Selling Plan for all marketplaces.
How can beginner sellers learn cross-border e-commerce operations?Can I do it even if I have no experience?
Amazon also has plenty of learning channels for beginner sellers!You can choose free online self-study, which is available 24/7, or free official live broadcasts, where you can learn with a manager and ask questions anytime. If you need more in-depth learning and want systematic instructions from a coach, you can also sign up for Training Academy paid professional courses, or paid dedicated advisors who can create a one-on-one customized storefront planning solution for you.
Do I need a trademark to sell on Amazon?
Not necessarily, but Amazon recommends that you register an overseas trademark first. This is the first step in building your brand overseas!If you sell products on Amazon and complete Brand Registry, it is helpful for you to gain brand and product exposure opportunities that other sellers do not have, and access official brand-building and protection tools, to help expand your brand advantages, grow your brand globally, and increase your profits!
What costs are involved to sell on Amazon?
To sell on Amazon, you need to consider additional costs such as the monthly subscription fee for the Professional Selling Plan, Referral Fee, fulfillment fees, advertising fees, Refund Administration Fee, listing fees, and frees for paid account services. For specific fees, please check Costs to sell on Amazon.
How to check what qualifications, certifications, or requirements are needed to sell a product?
Compliance is essential. During the product selection and inventory preparation stage, we recommend that you start learning about product compliance requirements, the required compliance documents, and how to get information about compliance service providers, to help avoid the risk of listing deactivation in advance. After registering as an Amazon seller, you can use the “Compliance Reference” function in Seller Central, to search for Amazon product compliance, dangerous goods compliance, export compliance, import compliance and other relevant requirements of the destination Marketplace/country or region, and check a range of compliance service providers reviewed by Amazon.
Data source: *Data is based on the historical data from new sellers. Actual results may vary by account operations. Data is for reference only.
Amazon New Seller Registration Guide
Before you start selling on Amazon, prepare the required registration materials in advance and familiarize yourself with the registration process, so you can open your store smoothly!
Getting Started: New Seller Guide
Global business opportunities
