Amazon has seen huge growth during the pandemic. Here’s why it’s time for your HK business to start using its services.
Amazon has come miles since its inception as an online bookstore in 1994. Now one of the world’s biggest companies, it dominates western eCommerce, cloud computing, streaming services, and more, and, in 2021, was valued at a whopping 1.7 trillion USD.
As a Hong Kong business, you’ve probably heard of Taobao and Alibaba. The two chinese tech giants dominate the eCommerce market there much like Amazon does in the US. While setting up your HK business on Amazon can be a little more complicated the pros heavily outweigh the cons.
Table of contents
- Amazon’s growth over 2020
- 4 Crucial Advantages of Amazon for Hong Kong companies
- Getting your products listed on Amazon
Amazon’s growth over 2020
For the past couple decades, eCommerce has been a growing industry. Year after year, more people realised that the convenience, selection, and ease of shopping online outweigh nearly every aspect of brick-and-mortar shops.
And then COVID-19 hit.
The way the world operated changed vastly – from restaurants pivoting to the food-delivery world to eCommerce receiving more orders than ever. While more traditional face-to-face businesses struggled, eCommerce companies like Amazon grew faster than ever.
In fact, Amazon’s market value surged $570 billion USD in 2020 alone – that’s nearly a 50% growth in under a year. In terms of sales, there were 43.6% more than last year – a figure that clearly indicates the sheer growth Amazon has maintained.
But it isn’t just Amazon that’s been capitalising on the pandemic. Companies that use Amazon are the real drivers behind this growth, and those that have been forward-thinking enough to pivot away from physical sales to the eCommerce world (if not already there) have seen their business thrive.
4 Crucial Advantages of Amazon for Hong Kong companies
If you’re a Hong Kong company active in the eCommerce world, there’s a few reasons why using Amazon to sell your products could be to your advantage.
1. More people use Amazon than Google when making purchasing decisions.
The typical online customer journey is as follows:
Awareness → Consideration → Acquisition → Service → Loyalty
Each of these steps are vital if you want to run a successful business that makes money from online sales – even if acquisition is where the actual purchase takes place.
People need to know about your product. This could be from word of mouth, seeing a well-placed advertisement, or anything else. It is at the next stage in which many businesses fall short. Customers will do their research on a variety of online platforms in order to find out which product is best, which suits their needs the most, and which is the best value for money (among other factors). There’s been a big shift towards the digital world under COVID-19, and many more businesses are making the smart move of investing in services like SEO and SEM for Google, Facebook, Instagram, and more.
But the truth is, up to 55% more people use Amazon than Google when making purchasing decisions – i.e. if they want to compare different products.
Having a presence on Amazon is absolutely vital if you want to ensure that your product will be part of the competition.
2. Increase your customer base
No matter how many sales you’re currently making, a platform with 300 million active users is bound to increase your sales significantly.
3. Enter the global market with a bang
Plenty of Hong Kong businesses already operate on Chinese eCommerce giants like Alibaba and Taobao. These, like Amazon, are huge for smaller businesses who can’t generate a significant amount of reach without a 3rd party platform.
But despite having such a huge presence in Asia, companies looking for a truly global reach must look at Amazon as well.
Amazon dominates eCommerce in the US, accounting for 38% of all online sales. It also has a colossal presence in much of the Western world like the UK, France, Germany, Canada, etc.
4. There’s no need to have your own warehouse with stock
Fulfillment By Amazon (FBA) is part of Amazon’s service to sellers. All you need to do is ship your products to Amazon directly – they will help you store them, distribute them when customers buy them, process returns, and more.
FBA allows your business to spend more time focusing on growing, improving your products, and innovating, rather than being dragged down by costly logistics.
Alternatively, you can arrange your own logistics partner in the US, which can be cheaper and equally reliable alternative to Amazon’s own service.
Getting your products listed on Amazon
To get your products listed and sold on Amazon’s marketplace, you’ll need to complete the following steps.
Note – if you are interested in a step-by-step, detailed guide to the entire process below, you should download our Amazon setup eBook.
1. Incorporate your company
To legally sell on Amazon (in the US), you’ll need to become incorporated in the US. You’ll need:
- A valid credit card number
- Phone number
- Tax ID information
You can either set up an LLC or a C corporation, depending on your needs. We also highly recommend incorporating your company in Delaware, thanks to tax flexibility, modern corporate laws, and simple set ups.
2. Get your GTIN
In order to sell on Amazon, you need a Global Trade Item Number (GTIN). These are the numbers you see beneath barcodes, and can be used to identify your products online.