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Amazon Seller Success Stories: In conversation with Otaro
"Expansion into the Amazon.co.uk offers potential for revenue growth but requires strict monitoring to ensure the business remains sustainably profitable."
Adrian & Roman
CEO's of Otaro
Otaro is an experienced Amazon selling partner based in Haßloch, Germany. They have been selling sport bags on Amazon.de since 2018 and decided to expand to the UK in 2024.
Tell us a little bit about your business and start of your Amazon journey in Germany.
We are a young company specialising in innovative sports bags for tennis, skiing and hiking. We were founded in 2018 and started selling through Amazon FBA. Before Brexit, we were already active in the United Kingdom, but shipping goods became increasingly difficult. Since the end of last year, we have been focusing more strongly on the United Kingdom again, supported by Amazon’s new programme.
What inspired you to expand to the United Kingdom with Amazon?
Our decision to expand to the United Kingdom with Amazon was inspired by a thorough analysis of search volumes for our keywords across different countries. Based on this we saw great potential for our products in the UK, which prompted us to specifically target this market despite the uncertainties surrounding Brexit.
We therefore began early to place our offerings in other European countries as well as the UK, which increased our revenue growth by about 20%. Nevertheless, profitability was difficult at first. Overall, profits remain higher in Germany as conversion rates are lower despite translated listings. This is an area where we want to continue improving.
We therefore began early to place our offerings in other European countries as well as the UK, which increased our revenue growth by about 20%. Nevertheless, profitability was difficult at first. Overall, profits remain higher in Germany as conversion rates are lower despite translated listings. This is an area where we want to continue improving.
We recognised particularly strong potential in the United Kingdom, which is why we focused specifically on this marketplace despite Brexit.
How did you navigate UK specific requirements and regulations?
We received support from Amazon and conducted extensive research in parallel to successfully master the product-specific requirements and regulations in the UK. Amazon’s support and guidance were extremely helpful. Nevertheless, we had to clarify many details independently to ensure our products meet all relevant standards. By conducting specific Google searches and engaging with our professional network, we gained additional important information to guarantee our products meet all export requirements for the UK.
How did you manage the Tax and VAT setup? Did you use VAT services on Amazon or seek third-party support?
We used Amazon VAT Services, which connected us with AVASK as a tax partner. With AVASK’s expertise and support, we were able to successfully master the tax and logistics challenges of the British market. Thanks to the collaboration with Amazon and AVASK, we were able to understand and smoothly implement the necessary processes – a crucial step in successfully offering our products in the UK.
How did you navigate product-specific UK requirements and regulations?
Whenever we were informed by Amazon about new EU regulations or requirements, we immediately worked with great commitment to fully implement these and ensure that all guidelines were conscientiously followed. In addition to the information provided directly by Amazon, we actively researched Amazon-specific forums to learn about other sellers’ experiences, to avoid potential pitfalls, and identify best practices for implementing regulations.
Additionally, we regularly consulted with our tax advisor to ensure clear interpretation of requirements, particularly regarding tax and legal aspects relevant to the UK. This helped us ensure that our products and processes were correctly adapted.
Besides information from Amazon, we also checked official British documentation and regulations to establish a solid foundation for our adjustments. This included documents on product compliance or specific tax regulations required for export to the UK.
Additionally, we regularly consulted with our tax advisor to ensure clear interpretation of requirements, particularly regarding tax and legal aspects relevant to the UK. This helped us ensure that our products and processes were correctly adapted.
Besides information from Amazon, we also checked official British documentation and regulations to establish a solid foundation for our adjustments. This included documents on product compliance or specific tax regulations required for export to the UK.
How does your supply-chain / inbound logistics setup look like?
Our supply chain begins with our goods being imported from our manufacturer to Germany and then transported onward to the UK. Initially, we tried to organise the onward transportation in cooperation with UPS and Amazon, which did not work as planned. Amazon then proactively made us aware of the ATS-solution (Amazon Transportation Services).
After initial challenges, we managed to implement the process successfully. We have now shipped goods into the UK three times. Typically, the goods are registered on the UK marketplace about three weeks after shipping from our warehouse. While the first shipment with the ATS-solution was somewhat more complex, particularly when creating shipment details, all relevant information about product compliance and contact detail are now automatically saved, which significantly reduces the effort for future shipments.
After initial challenges, we managed to implement the process successfully. We have now shipped goods into the UK three times. Typically, the goods are registered on the UK marketplace about three weeks after shipping from our warehouse. While the first shipment with the ATS-solution was somewhat more complex, particularly when creating shipment details, all relevant information about product compliance and contact detail are now automatically saved, which significantly reduces the effort for future shipments.
Are you using Customs Clearance and Shipping Solutions on Amazon to inbound to the UK?
All customs clearance is handled through AVASK. Through the online portal, we can create commercial invoices for import and export to the UK and process all customs documents. This process is well-structured and while it’s slightly more time-consuming than exporting to EU countries, it’s managable for our small team. We follow the Amazon workflow, which has been continuosly optimised over time.
Initially, there were frequent error messages as additional information is required for the UK. A tip: It’s important to carefully check and supplement product data in advance to avoid such errors. The AVASK integration in Seller Central is fully automated and represents a real work relief, as expansion in the UK would not have been possible without AVASK.
In the last twelve months, we have noticed significant improvements in the entire process. Since we expanded to the UK relatively early, we experienced the intitial phase with some challenges. For example, we had problems with our first shipment to the UK, but the next shipment went much more smoothly and the most recent shipment a few weeks ago showed further imporvements. These developments make us very optimisitc about the future.
Initially, there were frequent error messages as additional information is required for the UK. A tip: It’s important to carefully check and supplement product data in advance to avoid such errors. The AVASK integration in Seller Central is fully automated and represents a real work relief, as expansion in the UK would not have been possible without AVASK.
In the last twelve months, we have noticed significant improvements in the entire process. Since we expanded to the UK relatively early, we experienced the intitial phase with some challenges. For example, we had problems with our first shipment to the UK, but the next shipment went much more smoothly and the most recent shipment a few weeks ago showed further imporvements. These developments make us very optimisitc about the future.
What is your advertising and brand strategy? What are the key tools you rely on?
Our advertising and marketing strategy is based on identifying deficits in various sports, particularly in the area of practical and aesthetically pleasing bag solutions. We have developed high-quality, robust products that clearly differentiate themselves from competition and discount solutions. This differentiation has enabled us to build a loyal fan base that recommends our products – mainly through word-of-mouth.
In our pricing strategy, we orient ourselves to the market prices of our competitors, as there is intense price competition on Amazon that we cannot avoid.
In our pricing strategy, we orient ourselves to the market prices of our competitors, as there is intense price competition on Amazon that we cannot avoid.
Our high-quality and durable bag solutions clearly stand out from the mass market and discount products. Thanks to their quality and uniqueness, we have been able to gain a loyal fan community and steady customer base on Amazon who wholeheartedly recommend us.
Do you see a significant difference between customers in the UK compared to the European Union?
Yes, we have found that British customers show a higher willingness to pay for high quality products compared to customers in other European countries.
How do you decide about what selection to offer in the UK?
We offer our entire range in both the EU and the UK. Based on promising search data, we launched our full product range in the UK despite initial market uncertainties. If an SKU does not perform, we discontinue shipping it to the United Kingdom.
It requires additional effort to keep track of the warehouse in the UK and ship goods there. Additionally, costs are higher than in the EU due to special measures, but we can currently achieve higher prices, making profitable sales possible. Initially, the managing director invested about 3 weeks at 40 hours each to oversee the market entry.
At the beginning, the cost-benefit ratios were still disproportionate, mainly due to the cautious approach in a new marketplace. A gradual entry is advisable to observe how the product develops. We viewed the start-up phase as an investment and trusted that the data situation would improve over time. UK is one of Amazon’s largest marketplaces and resembles the German market in many aspects, particularly in consumer behavior. This similarity helped us maintain focus and continue despite setbacks. Our insight: patience and perseverance pay off in the long run.
It requires additional effort to keep track of the warehouse in the UK and ship goods there. Additionally, costs are higher than in the EU due to special measures, but we can currently achieve higher prices, making profitable sales possible. Initially, the managing director invested about 3 weeks at 40 hours each to oversee the market entry.
At the beginning, the cost-benefit ratios were still disproportionate, mainly due to the cautious approach in a new marketplace. A gradual entry is advisable to observe how the product develops. We viewed the start-up phase as an investment and trusted that the data situation would improve over time. UK is one of Amazon’s largest marketplaces and resembles the German market in many aspects, particularly in consumer behavior. This similarity helped us maintain focus and continue despite setbacks. Our insight: patience and perseverance pay off in the long run.
How long did it take to become profitable in the UK market? Can you share any key learnings?
Profitability, especially in non-German marketplaces, is often a major challenge as consumer behavior and price sensitivity differ significantly from what we are used to in Germany. However, in the UK, we became profitable within a very short time as we can generally achieve the same or even higher prices there.
What are your final words and advice for Selling Partners starting the UK expansion?
In conclusion, expansion to the UK offers many opportunities but also requires careful planning. If you want to sell abroad, it’s crucial to calculate precisely whether the expansion is really worthwhile. Particularly with the translation of listings, images and keywords, a lot of time should be invested, as automatic translation programmes often do not provide the appropriate terms. Therefore, thorough, country-specific keyword research is essential.
The expansion offers great potential for revenue growth but requires continuous monitoring to ensure the business remains sustainably profitable. Our most important advice: Take the leap! The UK is a huge e-commerce market with lots of potential. Our sales have started successfully, and after the first shipment, the process have significantly simplified.
The expansion offers great potential for revenue growth but requires continuous monitoring to ensure the business remains sustainably profitable. Our most important advice: Take the leap! The UK is a huge e-commerce market with lots of potential. Our sales have started successfully, and after the first shipment, the process have significantly simplified.
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