In conversation
with Crazy Bull
Our long-term goal is to expand into all marketplaces with Amazon
Chrys
Co-Founder and Director of Crazy Bull
Crazy Bull is an experienced Amazon selling partner based in the UK. They have been selling hair products on Amazon.uk since 2018 and decided to expand to the EU in 2024.
Tell us a little bit about your business and start of your amazon journey in the UK:
My name is Chrys and I am the co-founder and director of Crazy Bull Hair products. It was founded in Cyprus, 2007 and in 2018 we officially started trading in the UK and have been based here ever since. Our product selection mainly consists of male hair styling products and hair care but we are always looking for opportunities to expand our range.
What inspired you to expand into European Stores with Amazon?
We decided to physically inbound our inventory on both sides of the customs border via Local Inbounding into UK and EU, which made our goods more competitive thanks to lower fulfilment fees and faster delivery speeds.
We decided to physically inbound our inventory on both sides of the customs border via Local Inbounding into UK and EU, which made our goods more competitive thanks to lower fulfilment fees and faster delivery speeds.
When in your expansion journey did you decide to expand to the EU and why?
We decided to expand in regions that did not require VAT registrations like the US, Canada and Australia. Once we felt more comfortable expanding into new stores, we started reviewing EU expansion.
How did you manage the Tax and VAT setup? Did you use VAT Services on Amazon or seek third-party support?
We have registered VAT for all four countries, Spain, Italy, Germany, and France, which at first seemed expensive, however, Amazon offered preferential rates for VAT per country if we used ‘VAT Services on Amazon’. The rates are cheaper than using external partners. It provides a range of tax partners to choose from and it’s easy to apply.
How did you manage the Extended Producer Responsibility (EPR) Registration?
We decided to do this preemptively after Brexit and we googled information per country to apply for the relevant licenses. However, I know Amazon has information on their platform to help other sellers.
How did you navigate product-specific EU requirements and regulations?
To sell into the EU, for certain products, you have to display certain recycling information onto your packaging, which is not required in the UK, USA or Canada. Therefore, we had to do some changes there, and also to add the different languages, which is required by Amazon in order to sell in these European countries. Amazon has help pages to help you understand the requirements.
To understand what compliance legislations you need to comply with for each store, and how to provide Amazon the necessary information, go to:
How does your supply-chain / inbound logistics setup look like?
At the moment, being based in the UK, we have different factories that we're working with and in the UK. First, once the orders are received, we are preparing the inventory to be shipped to Amazon through FBA. So obviously, for the UK, it's straightforward because we can just generate the shipping labels through Amazon with a current partner courier of Amazon which is UPS in the UK.
First, we're sending inventory to the UK FBA Fulfilment Centres (FCs) through the current courier.
When it comes to Europe, we're sending inventory to the fulfilment centre we're working with in Europe. And the fulfilment centre then sends the inventory to the relevant European FCs.
First, we're sending inventory to the UK FBA Fulfilment Centres (FCs) through the current courier.
When it comes to Europe, we're sending inventory to the fulfilment centre we're working with in Europe. And the fulfilment centre then sends the inventory to the relevant European FCs.
Are you using Customs Clearance and Shipping Solutions on Amazon to inbound into the EU?
We intend to use the on-amazon solutions to send inventory into the EU once we get enough sales volume as I would recommend sending stock from EU to EU and acquiring a warehouse in the EU if possible. The amazon rates are also competitive and cheaper than the market average; It costs 144 pounds for a pallet to France. You can also defer import taxes and claim them back.
We intend to use the Customs Clearance and Shipping Solutions on Amazon to send inventory into the EU once we get enough sales volume. The amazon rates are also competitive and cheaper than the market average.
What is your advertising and brand strategy? What are the key tools you rely on?
Crazy Bull is not just a common brand. What do I mean by that? There are brands that are fully e-commerce, which means their marketing can be different.
But when it comes to us, we're selling to barbers, we're selling to consumers directly through our platform. So the branding on Amazon must align with the branding in general.
In addition to competitor analysis and refreshing marketing content quarterly, we provide the right videos and descriptions to the agency making sure to include in-depth product information for customers.
But when it comes to us, we're selling to barbers, we're selling to consumers directly through our platform. So the branding on Amazon must align with the branding in general.
In addition to competitor analysis and refreshing marketing content quarterly, we provide the right videos and descriptions to the agency making sure to include in-depth product information for customers.
Do you see a significant difference between European and UK customers?
We tend to not see a difference in purchasing behavior across UK and European customers and see similar trends. We see more of a difference within the EU countries. Our products are very popular in the UK and Spain but France, Italy and Germany have seen a slower uptake. This doesn’t deter us from entering as we are aware these things take time and can be combatted with more research.
How do you decide about what selection to offer in the EU?
We have launched 1 product in the EU to start with, our styling powder, as it is the lightest weight and can be delivered with a SPS carrier. Our main priority was keeping inventory levels consistent as we launched in new markets before increasing selection.
Our other products will need to be shipped via pallet as they are heavier. This will require more preparation and longer lead times. Once the sales with the styling powder reach an optimal point, we will introduce the sea-salt spray and then the rest of the product lines. A blocker for this is switching our warehouse from the Ireland to an-EU based region in Germany, Italy, Spain or France.
Our other products will need to be shipped via pallet as they are heavier. This will require more preparation and longer lead times. Once the sales with the styling powder reach an optimal point, we will introduce the sea-salt spray and then the rest of the product lines. A blocker for this is switching our warehouse from the Ireland to an-EU based region in Germany, Italy, Spain or France.
How long did it take to become profitable? Can you share any key learnings?
Whilst we are confident that we will do well, we expect this to take 3-6 months as competition can be high in new stores except the product is unique. The first 3 months can be considered as your learning phase where to test everything from keywords, bidding and advertising.
Additionally, it takes time to build trust and find product gaps/ opportunities to exploit. Our long-term goal is to expand to all available markets on Amazon.
Additionally, it takes time to build trust and find product gaps/ opportunities to exploit. Our long-term goal is to expand to all available markets on Amazon.
What are your final words and advice for Selling Partners starting the EU expansion?
Final word of advice is patience and be rational. In my opinion, not only on Amazon, but in general, if you're not patient and rational to take the right decisions when it comes to your business, then you are in the wrong industry.
We have launched 1 product in the EU to start with, our styling powder, as it is the lightest weight and can be delivered with a parcel carrier. Our main priority was keeping inventory levels consistent as we launched in new markets before increasing selection.
You have to be patient to work, try to find improvements. You're going to make mistakes, but you have to be confident and see yourself at the end where you want to be and take rational decisions.
You have to be humble and rational to identify what you're doing wrong and what you're doing right. And when you identify what you're doing wrong, you have to do improvements.
You have to be humble and rational to identify what you're doing wrong and what you're doing right. And when you identify what you're doing wrong, you have to do improvements.
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