Amazon retailers shy away from cross-border trade — causes, challenges and solutions

International online trade is booming — but not everyone is benefiting equally. While major brands are increasingly selling globally, many Amazon retailers are reluctant to offer their products across national borders. Why is that so? What is stopping retailers from expanding their business internationally, and what solutions are there?

Cross-border e-commerce — a billion-dollar market with hurdles

According to recent studies, cross-border e-commerce is growing steadily. The European single market alone offers enormous potential for online retailers. Nevertheless, the proportion of Amazon sellers who sell their products internationally remains comparatively low. Small and medium-sized retailers in particular avoid moving abroad — despite available infrastructure such as “pan-EU” shipping by Amazon.

Key reasons why Amazon sellers are reluctant

1. Complexity of tax requirements

A central obstacle lies in the Sales tax regime. Since the entry into force of OSS regulation (one-stop shop) Although there has been a relief within the EU, the obligation to register in several countries may still exist — especially when using fulfillment services such as FBA (Fulfillment by Amazon), which automatically transfer warehouse goods to various countries.

Concerns about errors, back payments, or even fines are preventing many retailers from seriously considering cross-border sales.

2nd Logistical challenges

Although Amazon is using programs such as the Pan-European shipping network (Pan-EU) makes logistics easier, many retailers find control over inventories, returns and shipping processes abroad to be confusing and risky.

Add higher shipping costs, longer delivery times in certain regions and the risk of damaged goods due to multiple transfers.

3rd Language and cultural barriers

Product presentation in the respective local language is a decisive success factor. But many retailers are afraid of the Translation of product texts, customer service in foreign languages and the adaptation of marketing measures to cultural characteristics.

Especially when it comes to products that require explanation, the effort is considerable — and mistakes can quickly destroy the trust of potential buyers.

4th Legal uncertainties

Divergent Consumer protection laws, Withdrawal deadlines, Labeling requirements and other national requirements are causing uncertainty among many retailers. Even within the EU, there are significant differences in online trade law, which can lead to expensive warnings.

5th Cost-benefit assessment

Many small retailers ask themselves the question: Is it worth the effort? Without a specific market analysis, international expansion often remains an experiment with an uncertain outcome. The fear of losses outweighs the potential revenue gain.

Amazon itself — a blessing or a burden for internationalization?

Although Amazon offers numerous tools for international expansion — such as the “Build International Listings” tool, automated translations, or centralized tax solutions — many retailers report that the implementation is prone to errors. Customer service abroad can also quickly become a challenge, especially when Amazon support only provides limited assistance or does not offer localized processes.

Successful international sales — solutions for retailers

Despite all hurdles, there are strategies for Amazon retailers to sell successfully across national borders:

• Market analysis in advance: Tools such as Jungle Scout, Helium 10 or Amalyze help to assess international demand and the competitive situation.
• Professional tax advice: E-commerce tax specialists can take over the necessary registrations and automate tax obligations.
• Local translations: Instead of machine translation, professional native speakers or specialized agencies should be hired.
• Gradual expansion: Instead of starting across Europe right away, retailers can concentrate on a single target country — such as Austria or France.
• External fulfillment service providers: Alternatives to Amazon FBA often offer more flexible solutions with more control.

Conclusion

Cross-border trade via Amazon offers great opportunities — but also significant challenges. Many retailers are currently reluctant to expand abroad, not out of disinterest, but for understandable reasons: tax complexity, logistical uncertainty and legal risks. But anyone who prepares themselves strategically, brings suitable partners on board and acts with a sense of proportion can successfully position themselves internationally.

Especially in a globalized market environment, moving across national borders is increasingly becoming a prerequisite for sustainable growth. Traders who invest and learn today will be a decisive step ahead of their competitors tomorrow.

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