Amazon’s Global Expansion: Entering New Marketplaces in 2025 & Beyond
New Era of Expansion Strategy
Once admired as a mere book seller in the United States, Amazon has gone global, winning the hearts of millions. Amazon’s innovative approaches have forever changed the way the world shops, providing, in addition to growing its user base, a multitude of services including groceries and electronics. The current sellers in the Amazon marketplace are privileged to sell their products in the world’s largest online marketplace.
The Middle East, Latin America, and Southeast Asia are emerging markets that Amazon plans to expand into beyond 2025. The exponential growth of internet users and ecommerce growth in this region coupled with the dominance of young consumers makes it the ideal market region. This expansion is a rare golden opportunity for sellers.
It is crucial to consider that selling in these markets is not as simple as selling in home markets. Each country is bound to have its own set of challenges, rules, and customs. This further reiterates the need for an organized, and systematic, step-driven plan. In this article we will learn how to avoid errors while building a global brand in these regions.
The Importance of Amazon’s Global Expansion in 2025
First off – why do you think Amazon has chosen to focus on this specific area?
Middle East (UAE and Saudi Arabia)
High purchasing power in luxury, fashion, and electronics.
Rapid growth of Amazon.ae and Amazon.sa.
Shoppers rely on foreign brands and desire quick delivery.
Southeast Asia (Singapore as a Bay)
Young demographic with strong mobile-first orientation.
E-commerce expansion in Singapore, Malaysia, Indonesia, and the Philippines.
Singapore is emerging as the regional hub for Amazon.
Latin America (Mexico and Brazil)
Mexico ranks among the most significant e-commerce markets in Latin America.
Brazil is huge, but more complicated with taxes and a regulatory system.
Competition is increasing, but Amazon is spending a lot.
Example: A US-based electronics seller moved to Dubai with power banks. In the first 6 months, sales grew 100% compared to the US due to high demand and low competition.
Step 1: Identify and Research Your Target Market.
Not every product will be successful in every region. Research is the first step.
Middle East: Electronics, fashion, and beauty as well as fragrances are in demand.
Southeast Asia: Affordable gadgets, home essentials, and digital peripherals.
Latin America: There is an interest in health supplements, home goods, and health supplements.
Example: Youtube says modest brands experienced great success in Saudi Arabia and other gulf nations because cultural diversity aligned the line of the range.
Tip: Apply local keyword to demand tools like Amazon and Google Trends, and Global Selling Insights toge check before making any investment.
Step 2: Learn the Local Regulations and Taxes
Each market comes with its own share of taxation as well as customs to abide by.
Middle East: Holding VAT (Value Added Tax) is mandatory to many goods, Indian Cuisine and many Cosmetics Containers require Arabic.
Southeast Asia (Singapore): Cross the designated Sales Target Threshold to collect GST (Goods and Services Tax).
Latin America: Taxation in Mexico is relatively easy, Brazil however is a different story because of high taxation, and strict limitations on goods entering the country.
Case Study: There was a case in which a toy seller based in the US lost profit in Brazil because the seller failed to consider the taxation on import duties. The seller ended up with 40% in unforeseen taxation. The lesson is, always check tax regulations first.
Pro Tip: Amazon recommended providers to simplify VAT and GST registration can be contacted, as well as local tax consultants can be hired.
Step 3: Select The Most Appropriate Fulfillment Model
Amazon has 2 principal models.
FBA (Fulfilment by Amazon): For sellers that want to take advantage of Amazon prime.
FBM (Fulfillment by Merchant) – You store and transport the goods yourself. Best suited for specialty items or large, cumbersome goods.
Illustration: A beauty brand in the UAE shifted from FBM to FBA. The Prime badge alone was able to increase sales by 35% within the first two months.
Step 4: Construct a Landed Cost Strategy
Ignoring the hidden costs of doing business is why numerous sellers fail. You landed cost should consist of the following:
Cost of the good
Shipping costs
Duty charges
VAT or GST
Amazon seller account charges
Cost of returns
Illustration: A seller lost profit when selling kitchenware to Mexico. The profit per unit dropped from $8 to $2 after the unit cleared customs, and multiplied by the Amazon fees. Saving the business was achieved by adjusting prices.
Advice: A simple spreadsheet is a good tool to use to calculate the projected costs prior to sending the units.
Step 5: Globalize The Listings Set Forth for Each Region
Localization is different from translation as it takes the time to understand the complexity of a culture.
Use the appropriate language (Arabic for the UAE and KSA, Portuguese for Brazil, Spanish for Mexico).
Modify and tailor the listing headings, A+ content, and bullet points.
Change to local measurement systems like centimeters (instead of inches), grams (instead of ounces).
Illustration: A sneaker brand in Mexico experienced a 25% increase in traffic from the use of the term ‘tennis deportivos’ instead of the English word ‘sneakers’.
Step 6: Preventing Brand Infringement through Amazon Brand Registry
Protecting one’s trademark is essential. Amazon Brand Registry secures your listings as well as additional resources:
Defeats imitation sellers.
Access A+ Content and Brand Stores.
Increases Customers’ Trust.
Case Study: A skincare company that branched out into Singapore was met with copycat sellers just weeks after launch. Their fake listings restored brand trust after joining the brand registry.
Step 7: Start with Ads and Promotions
Every new market integration should be absolutely effortless as with every integration visibility is key.
Sponsored Products: Appear during searches.
Sponsored Brands: Advertise your brand store.
Coupons and Lightning Deals: Acquire new customers.
A Home-decor brand in Singapore roped with 20% off coupons and Sponsored Products Advertising. Within a month their bestseller rank improved from #1000 to #200.
Step 8: Outstanding Customer Service
Customers in new territories expect immediate resolution to their complaints and questions.
Use FBA to assist with local language customer service.
If FBM, hire bilingual support staff.
Respond to queries within 24 hours.
Tip: Fulfilling the serviceable area contributes to improved seller ratings which is imperative in winning the Buy Box.
Step 9: Optimizing Inventory Management
Sales will be contingent on Zero loss from Poor inventory plannings.
Initiate with a modest approach: Send a limited quantity of stock to test the market.
Pay attention to the storage limits imposed by Amazon FBA.
Reorder stock in advance to prevent stockouts.
Case Study: A seller in Mexico stocked too much FBA. Slower sales led to storage fees, which then ate into the profits. Lesson: Start small, then scale.
Step 10: Track, Measure, and Strategise.
Regularly track and monitor:
Conversion rate
Advertising cost of sales (ACOS)
Customer reviews
Post-tax profit margins
Results will indicate changes in pricing, keywords, and advertisements.
Expansion Playbooks by Region
Middle East: UAE & KSA
Top performing categories: Beauty, electronics, fashion.
Translate the listings to Arabic.
Obtain a VAT number.
Fast delivery and high-end brands are appreciated by shoppers.
Southeast Asia: Singapore and Beyond
Top performing categories: Gadgets, books, and digital content.
Shoppers are mobile first– enhance visuals and use short titles.
External traffic from social media influencers works well.
Latin America: Mexico & Brazil
Mexico is the simplest region for new sellers.
Although Brazil has higher taxes, there is a great demand for electronics and home goods.
Find a local partner to facilitate customs
Commonly Asked Questions
1. Will I require a business license to sell on Amazon in other countries?
This is not the case for all countries. Some areas offer cross-border selling and are easier to operate, however, having a local business can be beneficial for tax purposes.
2. Which marketplace is easiest for beginners?
Compared to Brazil and Saudi Arabia, Mexico and Singapore are more friendly to beginners.
3. How do I receive payment internationally?
Amazon pays its sellers in local currencies, which can be converted to a bank.
4. What products sell best in the Middle East?
Beauty and fashion, electronics, and any luxury item sell well.
5. Can I use FBA in all new markets?
Yes, FBA is in the UAE, Saudi Arabia, Singapore, Mexico, and Brazil.
6. Do I need to translate all listings?
Yes, the local language builds confidence and drives more sales.
7. What is the principal risk in Brazil?
High import duties and high complex regulations.
8. Can a small business sell in the global market?
Yes, small sellers also have the opportunity to grow, starting from one region.
9. How significant is Brand Registry?
It allows for A+ Content and protects the brand from counterfeiters.
10. How long before I see the results?
With the right steps, it is usually 3 to 6 months.
Conclusion: The Future of Amazon’s Global Expansion
With Amazon’s global expansion, new sellers can easily reach new customers and emerging markets. Sellers who start early in 2025 will be able to establish a brand in the Middle East, Southeast Asia, and Latin America.
There will certainly be hurdles—managing taxes and logistics as well as bridging cultural divides will need a discerning touch. But with the right approach and groundwork along with thorough localization, global selling has the power to change a business.
To expand, begin with a targeted approach and the right marketplace, and use the methodology outlined. Perhaps the next success story will be yours.
