A new Amazon study has found that 70% of European small and medium-sized enterprise (SME) owners are not confident in how to grow their business online.1. This is despite the fact that the majority recognizes the value and growth potential of digitizing their business.
The main areas where business owners would benefit most from support as they scale their business include guidance on how to best utilize their logistics support network (73%) and assistance with VAT and customs compliance (70%) .France, Germany, Italy, Spain, UK revealed1.
Omnichannel potential
The number of small and medium-sized enterprises in Europe is growing, increasing by 18% over the past 14 years (2008-2022).2 Approximately 84.6 million people will be employed in 20223. Many of these small businesses have a huge opportunity to leverage online sales to expand their reach and sales to a wider customer base, with 82% saying they see the benefits and added value that a digital sales approach brings. Masu.1.
For businesses looking to scale up, e-commerce was specifically cited by respondents as benefiting business owners. This is because it means businesses are always open (45%), gives them the ability to sell from anywhere at any time (44%), and provides access to a wider customer base (44%)1.
However, small and medium-sized enterprises (SMEs) are unsure exactly how to scale up and face challenges and barriers in digitizing their operations.
Invest time in learning to increase your online earnings
Despite the barriers they face, small businesses are determined to succeed digitally and are investing significant time in upskilling. On average, the owner spends 10 hours a week considering how to scale up and deal with increased online sales.1.This equates to 65 days per yearFour.
Based on our findings, business owners specifically want to know more about supply chains, delivery options, logistics, and regulations.1. However, if you do not have an experienced partner on board, such topics are proprietary, as the onus is on the seller to understand and ensure compliance with the regulations of each country in which they sell their products. This can put additional pressure on people.
A partner to bridge the knowledge gap
Xavier Flamand, Vice President, Amazon Europe Seller Services, said: We want to help business owners confidently deal with complex topics such as his VAT and compliance so that his business can transition and grow smoothly.
“Selling through Amazon gives sellers access to a wide range of tools and expertise, with 65% of sellers saying they benefit from customized support to sell their products online.”1 Amazon can be your mentoring partner to help your business succeed. In fact, small businesses that are fully confident in scaling are twice as likely to become Amazon sellers. ”
Amazon has a variety of tools, from Seller University to Perfect Launch, to help guide your small business through the digitalization process. In Europe alone, there were more than 125,000 small and medium-sized business sellers across Amazon stores last year, and more than 1.2 billion items were sold.Five. To ensure your small business is ready and confident to tackle the challenges that selling or expanding your business online may face, consider the following resources:
For businesses seeking further guidance on VAT and compliance:
Amazon Compliance Solutions – All-in-one solution integrated within Seller Central. We provide compliance solutions across tax, environmental, product, and international trade compliance categories to help sellers grow and expand.
VAT Knowledge Center As an Amazon selling partner, we aim to help sellers better understand the European VAT landscape and give them confidence to expand online.
Amazon resources for businesses considering the transition to e-commerce include:
Amazon brand protection offers a selection of advanced programs for merchants to protect and build their brands, including brand registries, violation reporting, and IP accelerators.
Amazon Seller University We provide educational resources to help businesses, brands, and entrepreneurs learn how to succeed as Amazon resellers.
Amazon Small Business Accelerator For all startups, entrepreneurs, and small businesses, a series on topics such as how to build your business online, strengthen your operations, increase sales, and establish your social media presence. We provide resources that are free to use. .
To explore tools that help businesses grow their e-commerce operations with confidence, follow these steps:
strategic account services provides business advice from designated marketplace consultants. Marketplace Consultants are Amazon's trusted experts who aim to help sellers grow their business, acquire new customers, and increase sales.
Fulfillment by Amazon (FBA) This allows sellers to store their products in Amazon's fulfillment centers, where we pick, pack, ship, and provide customer service to help our customers grow their business.
source:
1. Census consumer survey of 2,500 small business owners in Germany, Spain, France, IT, and the UK (500 respondents per country) July 2023.
2. https://www.statista.com/statistics/878412/number-of-SMBs-in-europe-by-size/
3. https://www.statista.com/statistics/936845/employment-by-smes-in-european-union/
4. Calculated assuming the average working hours per day is 8 hours.
Five. Amazon EU Impact Report 2023
