Amid the current COVID-19 global pandemic, the eCommerce space has undergone profound changes and has skyrocketed. As a result of strict lockdown measures worldwide, consumer shopping behaviors have changed overnight with millions forced to purchase goods from their own home, contributing to the massive growth spurt for eCommerce.
Here we’ll dive deeper into how today’s globalization of eCommerce has helped push the world’s largest online marketplace, Amazon, to expand into new regions so rapidly and why online sellers should claim their piece of this booming industry.
The Acceleration of Global eCommerce During COVID-19
Due to government enforced lockdowns around the world, many have turned to shopping online as the only practicable way to purchase necessary items. In fact, a recent study found that 21% of consumers are now shopping more frequently online as a result of the pandemic.
According to the Q2 2020 report from the U.S. Census Bureau, U.S. retail eCommerce reached a staggering $211.5 billion, a 44.5% year-over-year increase.
So what does this spike in eCommerce mean for online sellers? We’ve seen that the pandemic has ultimately pushed many to think about growing their business and reaching wider audiences. Furthermore, our recent survey of global online sellers found that 76% of online sellers are now thinking of expanding into new markets to further grow their business.
With that said, more and more online sellers in the past year and in 2021 are continuing to seek new marketplaces to sell on and grow their business. Amazon, a powerhouse in the global eCommerce market continues to provide cross-border sellers with more opportunities to expand into new regions, all due to its swift expansion.
Let’s take a look at how Amazon’s continued international expansion can enable more cross-border sellers like you to reach new heights.
The Massive Growth of Amazon and Where in the World They’ll Go Next
What originally started as an online book retailer back in 1994, has now become a global giant, with membership subscriptions, numerous physical stores, millions of goods for sale and even its own sophisticated delivery system which can get things to customers in just about an hour.
Fast forward to 2020, Amazon, now named the world’s largest online retailer, reached a whopping $386 billion in net revenue, a 38% increase from 2019, proving that the past year was the biggest yet for the company. The past year was also not too shabby for Amazon sellers as a recent report found that 3 out of 5 sellers saw their profits increase in 2020.
From Germany to Sweden, Amazon’s entrance into multiple international markets have been no secret, and the eCommerce giant has moved aggressively and quickly to widen its presence across the globe in recent years. Their strategy is mostly based on which countries are currently experiencing major upticks in eCommerce sales.
Over the past few years, Amazon has opened its doors to buyers and sellers in 16 countries such as U.S., Canada, UK, Germany, France, Italy, Spain, India, Japan, Australia, China, Brazil, Mexico, Turkey, UAE, Singapore and more is yet to come.
Let’s dive deeper into some of Amazon’s most recent and exciting new marketplaces.
Amazon Heads to the UAE
Back in 2019, Amazon launched in the United Arab Emirates replacing Souq.com – the largest eCommerce platform in the Arab world with Amazon.ae, and opened new business opportunities for many sellers, mainly from the EU and the U.S. to reach a more global audience. In addition, and for the first time ever, both sellers and buyers can opt for Arabic language when browsing the site, making every user’s experience more localized. UAE businesses of all sizes can also get the opportunity to sell products across 36 different categories including products they previously sold on Souq.
Amazon Launches in Sweden
In Q3 of 2020, Amazon officially launched its first marketplace in the Nordics with Amazon.se, providing local online retailers the opportunity to sell their goods as well as a convenient shopping platform for local consumers to purchase those goods. Swedish consumers could previously shop on Amazon but only via the U.K. or Germany, and often faced high delivery charges and a limited selection of products available with international delivery options. With the new launch, buyers will have access to more products and sellers will be able to sell in a wide range of categories.
While we still don’t know which additional regions Amazon will be entering in the near future, there is still more in store for the eCommerce giant like launching more cashier-free stores, adding new biometric payment methods, food delivery services and much more.
As Amazon continues to branch out to more and more markets, now’s the time for online sellers like you to expand your business and take advantage of the company’s swift global expansion.
How Online Sellers Can Get Paid from Amazon & Grow Their Business with Payoneer
Online sellers need a simple way to receive their global payments. Sellers on global marketplaces, for example those looking to get paid by Amazon, can get paid quickly and securely with Payoneer’s cost-effect and global payments solution, making receiving global payments as easy as receiving local payments.
Whether you’re a seller on Amazon already or are looking to sell on additional global marketplaces, Payoneer can help you manage all of your cross-border payments in one place, ultimately allowing you to focus on expanding your business and driving more sales.
When you register to Payoneer, you’ll be able to:
- Enjoy fast payments – get paid quickly and securely from leading eCommerce marketplaces to one single account.
- Grow your reach – receive payments from customers in the U.S., EU, UK and more with our local receiving accounts.
- Pay VAT for FREE – use the funds in your EUR or GBP account to pay VAT authorities.
- See the ‘big picture’ – connect your Amazon store to Payoneer’s Store Manager and easily manage and view your payment history for you stores all in one place.
- Pay suppliers – send payments to your suppliers and contractors for FREE.
What are you waiting for? Start selling on Amazon and global marketplaces and get paid with Payoneer today. Get paid from Amazon with Payoneer>>