Ecommerce enables you to sell to customers almost anywhere in the world but this does present a challenge - where should you start selling your products?

In this article, we are going to compare 23 different countries and break down the pros and cons of different regions so you can make an informed decision on the best countries for your ecommerce business.

We work with sellers operating in a vast array of countries, so if you need an accountant who truly understands what you do, get in touch with us today.

Although you could sell on any platform, we are going to use Amazon, the largest marketplace, for this comparison. That said, these findings will likely be true of other marketplaces (Etsy, Ebay, Walmart etc) across these same regions.

Marketplace Regions

You’re likely wondering how to sell internationally on Amazon or any other platform. Amazon actually has 4 marketplace regions which will give you an idea of the overall ecommerce regions available to you across the globe. These include:

• The Americas
• Europe
• The Middle East & North Africa
• Asia-Pacific

The Americas

This regions is home to:

• United States (amazon.com)
• Canada (amazon.ca)
• Mexico (amazon.mx)
• Brazil (amazon.com.br)

Europe

This regions is home to:

• Germany (amazon.de)
• United Kingdom (amazon.co.uk)
• France (amazon.fr)
• Italy (amazon.it)
• Spain (amazon.es)
• Netherlands (amazon.nl)
• Poland (amazon.pl)
• Sweden (amazon.se)
• Turkey (amazon.com.tr)

The Middle East & North Africa

This regions is home to:

• United Arab Emirates (amazon.ae)
• Saudi Arabia (amazon.sa)
• Egypt (amazon.eg)

Asia-Pacific

This regions is home to:

• Japan (amazon.jp)
• Australia (amazon.com.au)
• Singapore (amazon.sg)
• India (amazon.in)
• Amazon Thailand *
• Amazon Taiwan *
• Amazon South Korea *

Marketplace Comparison

We are going to compare all these country marketplaces on:

1. Support
   • Access to software and services to support your business
2. Demand
   • Average monthly revenue
3. Competition
   • Average review counts
   • Average sell price

In order to assess demand and competition we have collected data from every country using this set of real world products (pictured below). The products have been selected from various niches and spanning a range of price points to enhance the accuracy of this data.

1. Support

When running an ecommerce business, you want to ensure you have the tools necessary to grow your business. You could use software and services for almost every function in your business but we are going to use product research software as the yardstick here. We’ll compare the availability of such software across every marketplace and categorize them into:

• Excellent support
• Average support
• Limited support
• No support

Excellent Support

Some marketplace countries provide access to a vast range of software tools and, importantly, these tools function very well to provide actionable data for your business.

These are the 6 countries we found to have the highest level of support when it comes to product research (and often other) software products:

• USA (amazon.com) 
• Germany (amazon.de)
• UK (amazon.co.uk)
• France (amazon.fr)
• Canada (amazon.ca)
• Spain (amazon.es)

Average Support

Some marketplace countries provide access to a more limited number of software tools, each of which function at varying levels.

These are the 4 countries we found to have an average level of support regarding product research (and likely other) software products:

• Japan (amazon.jp)
• Mexico (amazon.com.mx)
• Italy (amazon.it)
• India (amazon.in)

Limited Support

Other marketplace countries provide limited access to software tools and when they do, the tools can perform inconsistently, which reduces the accuracy and actionability of the data they provide.

These are the 3 countries we found to have limited support in terms of product research (and likely other) software products:

• Australia (amazon.com.au)
• Netherlands (amazon.nl)
• UAE (amazon.ae)

No Support

Some marketplace countries are newer and the infrastructure around them is still developing. In these cases, you may not have access to supporting software tools at all. This can make running your business more challenging.

These are the 7 countries we found to have the lowest levels of (or no) support when it comes to product research (and likely other) software products:

• Turkey (amazon.com.tr)
• Egypt (amazon.eg)
• Poland (amazon.pl)
• Saudi Arabia (amazon.sa)
• Sweden (amazon.se)
• Singapore (amazon.sg)
• Brazil (amazon.com.br)

The level of support also impacts our testing, so from here onwards we will only proceed with the marketplaces which provide us the necessary information.

2. Demand

We used our example products to evaluate the demand levels across all the marketplaces. To this end, we compiled the average monthly revenues of the sellers of these products. For the purpose of time, we will showcase the results from one product across the marketplaces.

In order, the marketplaces with the highest average monthly revenue for this product (using USD for consistency) were:

1. USA (amazon.com) - $72,769
2. Germany (amazon.de) - $27,999
3. UK (amazon.co.uk) - $15,158
4. France (amazon.fr) - $10,070
5. Italy (amazon.it) - $5,891
6. India (amazon.in) - $4,107
7. Spain (amazon.es) - $4,083
8. Japan (amazon.jp) - $3,655
9. Australia (amazon.com.au) - $2,371
10. Canada (amazon.ca) - $2,053
11. Mexico (amazon.com.mx) - $1,038
12. UAE (amazon.ae) - $720
13. Netherlands (amazon.nl) - $252

Across all the examples tested, the marketplaces with the highest demand levels were:

1. USA
2. Germany
3. UK
4. Spain
5. France
6. Canada

3. Competition

Using the same products, we evaluated the competition levels across all the marketplaces. To this end, we compiled the average review counts and the average selling price of the sellers of these products.

Review counts

The lower the average review counts are, the lower the barrier to entry (competition) is for the marketplace.

In order, from least to most competitive (from lowest to highest average review counts) for this product, the marketplaces stacked up as follows:

1. UAE (amazon.ae) - 207
2. Australia (amazon.com.au) - 810
3. Italy (amazon.it) - 1,065
4. Japan (amazon.jp) - 1,081
5. France (amazon.fr) - 1,182
6. Netherlands (amazon.nl) - 1,597
7. Spain (amazon.es) - 2,428
8. UK (amazon.co.uk) - 2,513
9. Mexico (amazon.com.mx) - 2,759
10. India (amazon.in) - 3,017
11. Canada (amazon.ca) - 3,198
12. Germany (amazon.de) - 3,558
13. USA (amazon.com) - 6,073

Across all the products tested, the most competitive markets (highest average review counts) are:

1. USA 
2. Canada 
3. Germany
4. UK 
5. France
6. Spain

In order, the least competitive markets (lowest average review counts) are:

1. UAE
2. Netherlands 
3. Australia
4. India
5. Italy

Sell price

The higher the average sell prices are, the lower the price pressure (competition) in that marketplace.

In order, from the least to the most competitive (from the highest to the lowest average sell price) for this product, the marketplaces stacked up as follows:

1. Italy (amazon.it) - $118.19
2. France (amazon.fr) - $91.18
3. Mexico (amazon.com.mx) - $39.20
4. UK (amazon.co.uk) - $34.48
5. Netherlands (amazon.nl) - $31.40 
6. Spain (amazon.es) - $30.33
7. Australia (amazon.com.au) - $28.02
8. Japan (amazon.jp) - $25.71
9. USA (amazon.com) - $23 
10. Canada (amazon.ca) - $22.84
11. Germany (amazon.de) - $22.77
12. UAE (amazon.ae) - $19.06

Across all the products tested, the 4 most competitive (price sensitive) marketplaces, in order, were:

1. Germany
2. Canada
3. UK
4. USA

The 4 least competitive (least price sensitive) marketplaces, in order, were:

1. Italy
2. France
3. Mexico
4. Netherlands

Key Takeaways

• The USA, Germany, UK, Canada, France, or Spain are best if you want maximum software support and actionable data while researching products.
• USA, Germany, and Canada have the highest review counts.
• UAE, Netherlands, Australia, India, and Italy are where you’ll find the lowest review counts.
• Italy, France, Mexico, and the Netherlands are best if you wish to charge the highest price possible or avoid competitor price wars at all costs.
• USA, Germany, Canada, UK, and the UAE see the most downward pressure on price. 
• USA, Germany, and the UK are best if you want the highest demand levels to sell as many units as possible.
• The same product will sell about 5 times more in the USA than in the UK.
• The Netherlands and UAE have the lowest demand levels, followed by Australia, Mexico, India and then Italy.
• Spain, France, and Canada are the best middle-of-the-road option with lower competition and the next best demand levels.

Which marketplace to sell in

This depends on many factors. It may even be decided by your chosen business model. To that end, you may want to take a look at our Comprehensive Guide on the Best Ecommerce Business Models in 2024. However we will provide 2 schools of thought combined with the data we’ve gathered. Your approach may be to:

1. Maximize sales
2. Minimize competition

1. Maximise sales

A lot of work goes into creating an ecommerce brand. Just one product could take months to develop. For this reason, many take the path of ensuring they can sell a significant amount of product and fairly quickly. If this is your approach, then the best countries for your ecommerce business would be those with significant demand levels and you should consider the top 3 “mainstream” markets:

• USA
• UK
• Germany

2. Minimize competition

Alternatively, some wish to find a low barrier to entry, even if this potentially results in lower sales volumes. If this is your approach then consider the top 3 “alternative” markets, which still provide reasonable demand levels:

• Spain
• France
• Canada

Although you could choose any marketplace, if you’re going to sell on Amazon specifically, we recommend starting with one of the following unified accounts:

• North America
• Europe

North American (NA) Unified Account

This account gives you the ability to sell in these Amazon marketplaces:

• The US (.com)
• Canada (.ca)
• Mexico (.mx)

European Unified Account

This account gives you the ability to sell in these Amazon marketplaces:

• Germany (.de)
• UK (.co.uk)
• France (.fr)
• Italy (.it)
• Spain (.es)`
• Netherlands (.nl)
• Poland (.pl)
• Sweden (.se)
• Turkey (.tr)

How to Sell on Amazon Europe

With a European Unified account you do need to consider BREXIT. As a result, the UK is no longer a part of the EU (European Union). This means that Amazon UK (amazon.co.uk) no longer participates in Pan-European FBA or the European Fulfillment Network (it’s harder to sell across the UK/EU border). You can always expand later but due to this change, you may want to strongly consider starting your selling journey in Europe by either:

• Selling only in the United Kingdom
• Selling only in the EU

If you begin only in the EU, consider Germany (.de) for its strong sales volumes.

European VS North American Unified Account

If you’re stuck between the 2 accounts, here are some pros and cons of either.

North American Account Pros

• The sheer sales volume. The US has the largest consumer base.
• US-based Amazon culture.
• The number of new products being released every day.
• Reviews are transferable and expansion from the US to other markets is easier than the reverse.
• Simpler sales tax structure than VAT in Europe.
• Access to a massive range of Amazon seller services.
• Amazon tools focus more on the US market than any other.
• A multitude of niche markets.
• New Amazon seller features are released first here.
• Consumer culture allows for premium pricing in some niches.

North American Account Cons

• This is the marketplace with the most competition.
• Due to competition, it is the strictest market in terms of inventory limits and seasonal restrictions.
• Due to competition, it sees the largest amount and variety of black hat tactics.

European Account Pros

• You can, in time, sell across Europe (UK, DE, ES, IT, FR, NL, PL, SE), not in just one European marketplace.
• Combined, the 8 marketplaces can create sales numbers that rival US sales.
• There is relatively low competition compared to the US.
• The established markets are less competitive than in the US, allowing a larger product selection pool.
• Higher ease of entry to most markets compared to the US.
• The complexities of selling in the EU create a higher barrier to entry.
• There is an additional shipping mode from China which is via train.

European Account Cons

• BREXIT means the UK and EU are separate. Starting out, sellers need to choose either the UK or EU for FBA.
• VAT registration and filing in various EU countries can be more costly than sales tax in the US.
• FBA sellers selling in the UK and other EU countries must split shipments and send 1 to the UK and 1 to an EU fulfillment center.
• Listings in different EU countries will require translation.
• VAT on sales is usually about 20% of the sell price compared to an average of 7% in the US.
• Sellers may need to sell in various European countries to match US sales volumes.

Last Word

You should now have a better understanding of all the countries you can sell in and how they stack up in this ecommerce country ranking. Whether you follow an approach of maximizing sales or minimizing competition, this should aid your selection of the best countries for your ecommerce business.

If you’ve chosen where to sell and want to know the full startup costs for each of the ecom business models, see our Ultimate Budget Guide: How Much Does It Cost to Start an Ecommerce Business in the UK.

We work with ecommerce business owners who sell in a vast array of countries. If you wish to partner up with an accountant who truly understands ecommerce and the international complexities, get in touch with us today.