How Many Opportunities Are There in Amazon Spain, Italy, and Japan Marketplace

2020-04-09

In recent years, many sellers who have succeeded on Amazon US are planning to expand more marketplace. When choosing a new marketplace to sell products, it is important to know in advance what categories are available and which subdivided markets have a larger capacity, less monopolistic, less competitive, and easier to enter, etc. Only a comprehensive and accurate understanding of the market data could reduce the error cost of operating a new marketplace.
Then, we will take three marketplaces of Amazon(Spain, Japan, and Italy) as examples, and take the data of the US marketplace as references. We will compare and analyze these marketplaces from the dimensions of reviews, A+ proportion, and rating.
The analysis of subdivided markets’ quantity


                 


The number of subdivided markets represents the richness of these categories. There are 21,100 subdivided markets in the US, 15,575 subdivided markets in Spain, 14,221 subdivided markets in Italy, and 10,728 subdivided markets in Japan. Compare to the US, there is still room for growth in the number of subdivided markets in Spain and Italy, while the number of subdivided markets in Japan is small, which means that many products have not yet entered into Amazon | 本, ファッション, 家電から食品まで | アマゾン, and there are more opportunities.




The analysis of subdivided markets’ average reviews


                  


If our products do not have differentiated competitiveness, the TOP100 products’ average reviews in each category mean the reviews standard required for our new products to enter this category(product page basic credibility). The products’ average reviews is often an important factor in determining the cost and risk of Listing building, and whether a seller enters a market.
As shown in the chart above, "TOP100 products’ average reviews is less than 10" is taken as a metric to compare these 4 marketplaces. In the US marketplace, where Amazon has the most mature development, the number of markets with “the TOP100 products’ average reviews is less than 10” accounting for 28.1%. From this data, we can also see that most subdivided markets in the US marketplace have indeed entered a relatively mature stage.
However, according to the data, we can see that these "small" marketplaces such as Spain, Italy, and Japan, although the market capacity is known to be small, in most categories, there is not much difference in reviews between new products and the top Listings.




The analysis of subdivided markets’ A+ proportion


                  


The TOP100 products’ A+ proportion represents the difficulty of building a Listing. From another perspective, it also means the strength and professionalism of competitors. If most of the products have A+ pages, this means that new sellers also need high Listing building capabilities to compete with their peers, and vice versa.
Take the "TOP100 products’ A+ proportion is less than 20%" as a metric to compare these 4 marketplaces. We can see that most subdivided markets have a very low A + proportion. If you find that the Listing with A+ page has a high market share in these subdivided markets with a low A+ proportion, it proves that consumers in these subdivided markets are highly sensitive to the A+ page, you can do deep research in these Listings.




The analysis of subdivided markets’ average rating


                  


A market with a high average rating represents a high consumer recognition, fewer returns, and low after-sales cost. In a new marketplace that sellers are not familiar with, it is necessary to predict the return risk in advance and reduce the after-sales cost. But different types of sellers have different views on different data. Sellers who enter with homogeneous products want to find markets with a high rating and low returns, while sellers who do product development and improvement want to find markets where the average rating is low and consumers are still dissatisfied with the top products.
Compare these 4 marketplaces with the metric of "TOP100 products’ average rating is less than 4". Even in the US marketplace, the number of subdivided markets with an average rating below 4 is 6,193, accounting for 29.4%.
This kind of market structure has more room for sellers with branding, refinement, and product transformation capabilities. We may think that the US marketplace has been mature enough, but after statistics, we know that most products still have a long way to go in upgrading and iterating!






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