The Viability of Expanding to New Amazon Markets - Episode 152

INTERVIEW WITH HENDRICK LAUBSCHER

 

DESCRIPTION

Today I’m speaking with Hendrik Laubscher, the Founder and Chief Analyst of Blue Cape Ventures, a boutique research consultancy that focuses on marketplaces and cross-border eCommerce. With over a decade of experience in eCommerce in emerging and developed markets.

Tune in to discover more!

KEY TAKEAWAYS

  • Amazon has recently launched/announced the new EU markets - Netherlands and Sweden

  • The Netherlands is one of the most developed eCommerce markets in the world - Amazon didn’t have an official presence in the Netherlands, but was present in the Netherlands for a long time; it will be very competitive

  • Sweden - historically closed market, they didn’t allow foreigners to open marketplaces in their country; hard market to crack initially, it’s going to be a long process

  • Brand marketing is gonna be very important in the new marketplaces

  • International business doesn’t get the same results

  • Accretive revenue from expanding to new markets is very category dependant (anything from 8% to 25%, but between 8% and 12% is a more rational number)

  • Managing expectations when going into new markets

    • Brands are investing in a new consumer search engine which has different buying behavior

    • Dependant on the fact that brands can’t really control some aspects, such as how many consumers use Amazon

  • Brands want to go from walking to the Olympics in a short period of time, but this takes time, and there are additional challenges and requirements

    • How large is the buying opportunity in these markets

  • New markets are not a silver bullet but they can be a highlighter (it can be really good) or a magnifier (magnify problems)

  • Operational complexity of launching internationally 

MENTIONED IN THIS EPISODE

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