Etopia

Growing into Amazon with an Amazon Mindset

Etopia’s Managing Director, Asha Bhalsod

The Amazon Mindset – what is it exactly? Well here at Etopia it’s kind of our “X-Factor”.

Having an Amazon Mindset allows you to create digital transformation within your business and grow into the e-Commerce space whilst adapting existing processes to best realise fast-tracked growth. It’s knowing where, when, what and who to push with all things concerning Amazon. Speaking of growth – let’s deep dive European Expansion, hacking growth and world domination for your brand.

Expanding into Europe

It’s often said that expanding into Europe is just a click of a button on Amazon. However, as the experts we’re here to bust that myth. In a time where many established brands have maxed out on their organic Amazon growth, UK businesses are now fighting for incremental revenue and profit. It can be tempting to press that mythical EU Launch Button to find such revenue, but the reality is very different. If you’re currently trading with EU based businesses, a lot of the heavy lifting may already be done. However, as with any new market entries, you may come up against some blockers. Enter Etopia Consultancy.

The most important thing to take into consideration when launching in the EU is the differential in cost bases. Post Brexit, logistics and business admin has seen substantial change – as the industry adapts so do our ways of working. In the last quarter of 2021 Amazon trialled the re-opening of it’s European Fulfilment Network (EFN), re-opening opportunity for many of us. So, when creating the commercial proposition, here are some costs for factor in.

Logistics

There are many ways that you can send stock into Amazon EU territories, however each route delivers its own complexities with logistics. Direct Import, EU 3PLs, EU5s, EU8s and even the question of Seller Central vs Vendor Central, it can all feel so confusing. The main thing to note is that no matter which route you take – your business and products need to be compliant to EU regulations. If you’re already selling into Europe, then you’ll most likely be familiar with EC Reps and EORI numbers. However, if you need a tailormade expert entry plan, Etopia can provide a professional opinion on which route is best for your business.

Taxation

and often prefaced with ‘I’m not an expert but…’ Just as logistics vary by route to market, so does taxation. One thing is for sure, you need a VAT registration number in Europe with a valid EORI number alongside this. Taxation in Europe can be a minefield depending on multiple factors but it’s important to get expert advice here as the scope can vary for each business.

Translations

Let’s be honest – we have all ‘Google Translated’ product names from Amazon EU counterpart sites. However, when it comes to content creation, Google cannot be a reliable source. With nuance coming from syntax, sentence structure and prepositions – there is a wide scope for error. Use a professional translation agency to ensure you have confidence in what the customer is reading. Afterall, the number one rule of Amazon is that Content is King! The top tip here is to build this into your costings from day one.

Marketing Strategy

Before rushing into carbon copying your UK campaigns – wait a minute and weight out your marketing budget based on your brand presence in each market. If you’re only spending 20% of your budget on

Commercial Proposition

Finally, commercial proposition. It’s the age-old adage; Turnover is vanity, Profit is sanity, but Cash is king. Your venture into new markets must be financially viable for both yourselves and Amazon. Do in-depth market research on like-for-like RRPs or competitor products. There is no doubt that expanding into the EU5 will be an investment with a new cost structure, so evaluate your RRPs and any cost saving initiatives such as multi-lingual packaging.

When entering a new space, you have the luxury of this flexibility at the very beginning before those long conversations about cost price increases ensue.

So, to create a winning Amazon mindset and establish your brand in European markets, it’s a lot more than ‘just the flick of a switch.’ One thing is sure – there is incremental revenue in Europe, but the trick is to make it profitable and streamline it for everyone involved.

If you want a more in-depth and tailored action plan, email: Asha@etopiaconsultancy.com

brand awareness in the UK, this may not be the case in Germany or France where your brand may not be as well established.

Topline investment can also be variable – think about market trends when creating your strategy. For example, in Germany apartment living is more prevalent and parents often bath baby in a shower or sink. Use these insights when planning marketing expenditure and your focus products.

Some food for thought; in your home market you wouldn’t only advertise on Amazon… so this shouldn’t be the case for new markets.

Helping hand with Mums Mate

Nursery Today had the pleasure to catch up with Mehzabeen Patel (Mez), Shop Floor Manager of Mums Mate to find out more about this independent retailer located in Bolton, who have successfully been trading for more than 20 years.

Mums Mate was established in 1994, can you tell us a little about your store?

My parents own a newsagent, and the property next door came up for sale. We were looking to expand to become a large convenience store until my mum’s friend, a childrenswear wholesaler, approached us to try selling her stock. The shop was filled to the brim with clothing and uniform, and nursery goods followed when a distant relative (a nursery goods wholesaler) came to know about our shop. All stocks were provided on goodwill, payment made as stocks were sold. This is how Mums Mate came to be. Since first opening, what do you feel has been your largest achievement?

Our largest achievement is being able to survive through the years and making Mums Mate an established name in the community. Having come into the industry with no experience or knowledge in the field, it was a steep learning curve, but support from family and friends was a big inspiration. My colleague Debra Jones has also been our rock, having been with us through thick and thin over the past 17 years, she is now part of the family. This support from family and friends encouraged us in helping the wider community too through both our businesses, which led to my parents being known as local business community heroes. Also, what has been your largest challenge and how did you overcome this?

We have had our fair share of challenges over the years but nothing compared to the challenges we faced throughout covid and lockdown. In late 2019, Farida, my mum and Owner of Mums Mate was diagnosed with Breast Cancer and by March of the same year we had to close the shop overnight due to covid. We came to a sudden standstill and had to improvise overnight to make things work. We quickly turned our focus on new ways of retailing whilst continuing to help members of the community more than ever. Do you stock products that fall across a variety of nursery categories and if so, how does this assist the business?

Yes, we sell across all sectors under the ‘Baby’ Category. From dummies to outfits, safety equipment to nursery furniture, we have it all. We never have a quiet day, there is always something to do. Do you have a particular nursery category that performs well for you?

It depends on the day, we have days where only one category of goods

sells, and other days where everything else sells, you cannot predict what will sell in a day, it all depends on what type of customer comes through the door. As we try to stock brands that support ‘in store’ sales, independent exclusives and don’t sell directly to the consumer, we have found that price-matching is a very rare occurrence. Are you experiencing any difficulty with regards to stock availability/ delivery and if so, how are your suppliers supporting you?

We get regular updates with regards to stock levels, any low stock items, we try and steer the customer to an alternative, we also do try and encourage the consumer to order early.

As we try to stock brands that support ‘in store’ sales, independent exclusives and don’t sell directly to the consumer, we have found that price-matching is a very rare occurrence

Have you noticed a difference in the way consumers are currently shopping for nursery products – perhaps more so now with the ‘cost of living’ crisis?

More and more customers are now looking to join the payment plans we offer in store, buy little and often, or buy into bundle deals. Do you find that your customers are also asking for a pricematching policy from you and if so, how does this affect your business and is this something you will offer?

Are your customers informed prior to entering your store of what they are looking for, perhaps more so when we look at the car seat sector?

Some customers know what they want, others are vague, but when it comes to carseats most haven’t got a clue, which is scary. How does your website operate alongside your nursery store? Do you offer the same product selection online as you do in store?

We have always been focused on bricks and mortar retailing and are always looking to expand. We are currently in the process of setting up a more established online presence.

What about social media, how important is this to the business?

Social Media retailing for us was born in lockdown, it has now become a major part of how we operate and getting the shop brand known to the consumer. Do you feel that influencers of nursery products assist with regards to driving awareness of nursery product – or do they sometimes cause confusion when we look at correct usage of items?

We are on the fence with influencers, whilst some promote products in a positive light, incorrect usage does cause real confusion amongst the consumer as they think it’s the correct way to use the product. Would you say we have sufficient innovation and new product launches within our industry or would you like to see more?

We always welcome new collections and product launches, it keeps the industry alive. How do you currently source new products for your store or spot upcoming nursery trends?

Social Media, Brand support, Nursery Today and Harrogate helps keep us in the loop of certain trends and newness. The excitement when Harrogate draws near creates a new Buzz within the industry and it’s the day where we can touch base with fellow retailers and brands and find new brands to work with.

Mez and her sister Naz Van Der Westhuizen fundraising for Breast Cancer Awareness.

As a business, you also support Breast Cancer Awareness and run fundraising events. Can you tell us a little more about this?

Yes, this is our second year in actively supporting this cause. The level of support we as a family was given throughout my mum’s cancer journey is priceless, this is our way of giving back. Last year we raised over £2k just by setting up a day of fun and a coffee morning within our store. Many fellow retailers and Suppliers helped with this. I cannot thank them enough. This year we are doing it again on the 14th August 2022, at a Bigger venue with the community and local businesses helping us. How can your fellow retailers or suppliers get involved with this?

We have set up a just giving page for donations, any donation small or big are welcome. https://www.justgiving.com/ fundraising/AfternoonteaMAMission Finally, do you have any exciting plans on the horizon that you would like to share with Nursery Today readers?

We are always looking at new ways to do things not just for us In store but within the community. We will continue to build our brand and make Mums Mate a household name.