1. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com WELCOME!

2. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com How To Double Your Amazon Business By Selling Your Products In Europe

3. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com WHO ARE WE?

4. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THE EUROPEAN OPPORTUNITY  Over 200 million European Amazon customers  5 countries – Germany, France, Italy, Spain & UK  Example: Amazon.de => over 24m uniques

5. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THE EUROPEAN OPPORTUNITY  Developing marketplace  Fewer sellers using FBA, fewer product choices

6. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com DOES IT MAKE SENSE?  Almost identical market size  No new products required*  One account to rule them all

7. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com DOES IT MAKE SENSE?  One stock source to rule them all  One set of procedures to rule them all too

8. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com IMAGINE…  No new products  No new suppliers  No new systems …all from just one new account

9. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Section 1: The European Expansion Roadmap A-Z

10. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com BEFORE WE START… LET’S BUST SOME AMAZON MYTHS

11. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com AMAZON MYTHS…BUSTED  VAT?  Invoices needed for EVERYTHING?  Expensive?

12. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com AMAZON MYTHS…BUSTED  Impossible Inventory?  Isn’t this just Global Export?  Lots of languages & currencies?

13. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THE EUROPEAN EXPANSION PROCESS Start > Setup > Ship > Send > Sell > Save

14. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THE EUROPEAN EXPANSION PROCESS 1.Set up a suitable business entity (Start) 2.Create EU Amazon account & EU listings (Setup) 3.Ship products to a pre-Amazon location (Ship)

15. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THE EUROPEAN EXPANSION PROCESS 4. Prepare & send FBA orders to Amazon (Send) 5. Products are sold across 5 countries (Sell) 6. Paid in the local marketplace currency (Save)

16. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 1. START  Start a suitable business entity for Europe  Separate entity  Foundation for future growth  Tax structure  Business ready for scale

17. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 2. SETUP  Create a Unified European Seller Account  Similar & simple  Sell across 5 countries at once  Single source inventory pool  One account to rule them all

18. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 3. SHIP  Ship products from China / US (recommend: sea)  Send to pre-Amazon location  Customs / IOR (Importer of Record)  Inspect products (Unfulfillable)  Reduces ‘stranded’ units

19. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 4. SEND  Units readied in pre-Amazon location  Prepare units based on created FBA orders  Ship to one Amazon marketplace  Use that stock to power all marketplaces

20. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 5. SELL  Translate US listings into home marketplace  Localize dimensions & weight for each country  Recalculate sales prices  Monitor effect on profit  Scale to MCI in time

21. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 6. SAVE  Paid in local marketplace currency  Currency may be converted  Potentially save on conversion with 3 rd party  Multiple banks in multiple countries  Important if you plan to repatriate

22. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THE EUROPEAN FULFILLMENT NETWORK

23. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com EFN (EUROPEAN FULFILLMENT NETWORK)  The Unified European Account  5 layers – UK, DE, FR, IT, ES  5 separate seller accounts in one  Operate independently  One stock source

24. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Think of it like this…

25. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THE POWER OF ONE  One business entity  One seller account  One inward shipment  One outbound stock source  One management approach

26. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com …And it’s all completely automated

27. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com IT’S EXTREMELY SIMILAR

28. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com It’s an ‘enhanced’ version of the FBA you know

29. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Europe is an open playground right now

30. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THE OPEN PLAYGROUND  Ease of entry  Fewer sellers using FBA  Quality of listings & sellers – far lower  Entrenched sellers  Under developed markets

31. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Multi Country Inventory

32. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Section 2: Setting Up Your European Empire’s Structure

33. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com VAT – BASICS  HMRC (UK Government body)  Differs to US style sales tax  Price shown to consumer – VAT included (if applicable) © Johnson Kennedy DFK 2015

34. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com VAT – BASICS  Value Added Tax – 20% in UK  VAT is generally higher than US style sales tax © Johnson Kennedy DFK 2015

35. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com VAT PAYABLE EACH QUARTER = OUPUT VAT – INPUT VAT = VAT OWED © Johnson Kennedy DFK 2015

36. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com VAT – LLC VS LTD  LLCs must register immediately with UK  Possible to save considerably on VAT threshold  How? Establish a UK business entity (LTD)  Can trade up to £81k in 12 months without reg. requirement © Johnson Kennedy DFK 2015

37. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com VAT – LLC VS LTD  LLCs must register in UK from the first sale  If using EFN – must register in every other country © Johnson Kennedy DFK 2015

38. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com EFN / MCI  UK Limited company in place  Freedom of movement of goods within EU  Distance selling threshold(s) – UK to other EU states  Once breached > must register for VAT in each country © Johnson Kennedy DFK 2015

39. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com EFN / MCI  VAT charged where goods are warehoused (dispatched to customer)  LTD – use the EFN (distance selling thresholds)  LLC – must VAT register in each EU marketplace immediately  Once breached > must register for VAT in each country (MCI) © Johnson Kennedy DFK 2015

40. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com This is why an EU entity is VITAL © Johnson Kennedy DFK 2015

41. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Section 3: European Currencies & How To Deal With Them

42. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com EUROPEAN CURRENCIES  2 main European currencies (£ & €)  UK > £ / DE, FR, IT & ES > €  Sales price, Amazon fees & settlements – local currency  At settlement period – currency conversion can occur

43. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com AMAZON CURRENCY CONVERTER  Converts local currency to bank account currency  On settlement period completion, performs conversion  Sends converted amount to your bank account automatically

44. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com AMAZON CURRENCY CONVERTER  Conversion rate Amazon use – expensive  No control over the timing of the conversion

45. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com RECOMMENED ALTERNATIVE  Third party – completely within Amazon TOS  Local bank account set up  Settlement is sent to local bank account (no conversion)

46. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com CURRENCY CONVERSION  WorldFirst - currency conversion provider  9 years experience  Specialize in cross border transfers

47. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com HOW IT WORKS  Amazon charge 3.5% on the foreign exchange  Commerce Bank based in Germany  Barclays Bank UK  Unique & segregated accounts  WorldFirst add 1.5% to your bottom line profits

48. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Section 4: Localizing Your Inventory For Europe

49. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com LOCALIZING INVENTORY 1.Language 2.Product Packaging 3.Metric vs. Imperial System 4.Product pricing 5.Item specifics to avoid 6.Different fee structure

50. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 1. LANGUAGE  US vs. UK differences  Professional translations are a must (www.translated.net)www.translated.net  Translation tool fine for customer services (if 100% FBA)  One off investment with insane ROI  Accounts can be managed in English

51. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 2. PRODUCT PACKAGING  Language – not initially necessary  Short product title translated recommended  Aspire to a multi-language instruction manual  Country specific boxes not required  Tip: Dual faced packaging

52. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 3. METRIC VS IMPERIAL (SIZING)  UK uses both – metric (cm, ml, kg) imperial (inch, fl oz, lbs)  EU uses metric only  Make sure that you localize both on your EU listings  Monitor sizing e.g. US shoe size vs. UK & EU shoe size / Clothes sizes

53. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 4. PRODUCT PRICING  Isn’t necessarily a direct conversion from US sales price  Must be recalculated – origin surcharge*, fees & taxes  Monitor competition to check estimated sales price  Create new product price using our research tools

54. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 5. ITEM SPECIFICS TO AVOID  Sizing (1m)  Multi box  Hazardous  Prohibited

55. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 5. ITEM SPECIFICS TO AVOID  Over 30kgs (66lbs)  Electrical (plugs + lightbulbs)  Non compatible sizes (paper)  Cultural (cars)

56. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 6a. FEE STRUCTURES - DIFFERENCES  Each country has a slightly different FBA fee structure  Type of fees don’t change, it’s the values that do  Weight bands

57. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 6a. FEE STRUCTURES - DIFFERENCES  Origin of goods may affect final sales price & profit  EFN fee / MCI inward shipment fees

58. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 6b. FEE STRUCTURES - SIMILARITIES  Amazon Seller Central account subscription fee  Sales referral fee  Pick & pack

59. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 6b. FEE STRUCTURES - SIMILARITIES  Weight based fee  Handling fee  Storage costs

60. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 6b. FEE STRUCTURES - SIMILARITIES  Standard size (imperial / metric)  Oversize fee (imperial / metric)  Returns policy  Reimbursement notifications

61. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com HOW TO MAKE SURE YOUR PRODUCT IS PROFITABLE IN EUROPE

62. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com PROFIT CHECKLIST 1.Account for VAT regardless 2.Account for Amazon Referral fee 3.Account for Amazon FBA fees

63. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com PROFIT CHECKLIST 4. Account for shipping cost of goods from origin to FC 5. Account for the product cost (FOB / ExWorks / DDP)

64. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com LITTLE KNOWN COSTS TO MONITOR

65. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com POTENTIAL PROFIT KILLERS Not expanding into these markets Launching with the wrong business entity Not using EFN to build data

66. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com POTENTIAL PROFIT KILLERS Not knowing when to go MCI (VAT & Cost) Using Amazon’s Currency Conversion

67. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com POTENTIAL PROFIT KILLERS Using poor, non-professional translations (translation tools) Not adhering to the product specifics to avoid Not localizing your product’s sizing

68. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com POTENTIAL PROFIT KILLERS Directly converting US sales prices Not incorporating the EU fees into your costs

69. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com POTENTIAL PROFIT KILLERS Overreliance on direct airfreight shipments Not understanding & maximizing cbm Avoiding the use of an EU freight hub

70. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com THIS LEADS US ON PERFECTLY TO DISCUSSING…LOGISTICS

71. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Section 5: Shipping Your Products To Europe (The Right Way)

72. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 2 MAIN ROUTES: 1.China to UK / EU 2.USA to UK / EU

73. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com CHINA TO UK / EU LOGISTICS PROCESS 1.Goods are consolidated in China 2.Shipped from dock to UK / EU 3.Documents required. Matched & married.

74. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com CHINA TO UK / EU LOGISTICS PROCESS 4. Goods arrive at docks in UK / EU 5. Documents submitted to customs and excise 6. Release notes for taxes & duties

75. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com CHINA TO UK / EU LOGISTICS PROCESS 7. Shipping line releases goods 8. Transported to UK depot 9. Inspected thoroughly

76. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com CHINA TO UK / EU LOGISTICS PROCESS 10. Labeled & prepared for Amazon 11. Delivery booked & completed for Amazon

77. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com A - Origin B – Destination C – Hub / Depot D – Amazon FROM FACTORY TO FULFILMENT EVERY ASPECT OF THE ORDER COMPLETE

78. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com USA TO UK / EU 1.Similar to previous process – some differences 2.Same documentation as before 3.Goods will travel from East Coast USA to UK 4.Arrival & delivery to Amazon process = same as China to UK

79. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com Section 6: Managing Your International Amazon Business

80. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com WHAT TO MANAGE? 1.Stock across multiple countries 2.Ordering for multiple countries 3.Inward & outward cash flow

81. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com WHAT TO MANAGE? 4. Reporting on the business 5. Accounting for the business

82. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 1. STOCK ACROSS MULTIPLE COUNTRIES  Start to build run rates for every product in every country  Need to know key product metrics Origin Production time (if applicable) Transit time  Frequent stock monitoring

83. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 2. ORDERING FOR MULTIPLE COUNTRIES  Order regularly in a controlled manner  Systemized approach & prioritize  Maximize cbm size while considering the run rate  Make sure to have correct documentation (2 x PIs)

84. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 3. INWARD & OUTWARD CASHFLOW  Multiple flows of cash – monitor when & how much  Using RVF to predict the future company cash position  Knowing when & if an order can be done

85. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 4. REPORTING ON THE BUSINESS  Sales reports across each country  Sales > Volumes / Values / Profits => run rates => forecasting  Stock across the globe – quantities, costs & RVFs  OPCs – where have you missed out

86. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com 5. ACCOUNTING FOR THE BUSINESS  Liaise with our accounts team  You’ll need: Sales & stock value reports / refunds reports Purchase invoices / receipts Bank statements Any other relevant information

87. Our Step-By-Step Guide To Expanding Your Amazon Business Into Europewww.marketplacesuperheroes.com LET’S TAKE A LOOK AT HOW ALL THIS WORKS WITH OUR RESEARCH TOOL