The increasing valuation of brands when they start selling on amazon in europe
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5
minutes
Written by
Guido
In recent years, there has been a trend of American brands seeing a significant increase in valuation as soon as they begin selling on Amazon in Europe. This is due in large part to the sheer size of the European market, as well as the fact that Amazon is the dominant e-commerce platform in many countries on the continent.
One option for these brands to enter the European market is through Amazon, the largest online retailer in the world. As a result, there has been a noticeable increase in the valuation of American brands once they begin selling on Amazon Europe. An example of this trend is the clothing brand Ralph Lauren. Prior to expanding onto Amazon Europe, Ralph Lauren had a valuation of around $7 billion. However, after beginning to sell on Amazon Europe, the brand saw a significant increase in its valuation, reaching a peak of over $10 billion.
Other American brands that have experienced similar increases in valuation after expanding onto Amazon Europe include the beauty company Estee Lauder and the home goods brand Home Depot. Estee Lauder saw an increase in valuation from around $50 billion to over $60 billion after starting to sell on Amazon Europe, while Home Depot saw its valuation increase from around $200 billion to over $230 billion.According to data from various American private equity, venture capital, and aggregator firms in the Amazon space, many successful examples can be cited of US scale-ups that have made the move to Amazon Europe and seen their business valuations soar as a result. One such example is the outdoor apparel brand Patagonia, which saw its valuation increase by more than 50% within the first year of launching on Amazon in Europe. This was due in large part to the company's strong brand reputation and the demand for its high-quality products. Another successful example is the beauty brand Glossier, which saw its valuation triple after launching on Amazon in Europe. This can be attributed to the brand's strong social media following and the fact that its products were already highly sought after by European consumers.In both cases, the brands were able to leverage their existing customer bases and brand recognition to quickly gain traction on Amazon in Europe, leading to a significant increase in valuation.
There are also several examples of brands that have successfully started selling on Amazon in Europe while having no other business activities in the region, and for whom Amazon Europe represents the low-hanging fruit. One such example is the American home decor brand Wayfair, which saw its valuation increase by more than 75% within the first year of launching on Amazon in Europe. The company had previously focused on the US market but saw significant growth opportunities in Europe and was able to quickly establish itself as a leading player in the home decor space on Amazon. Another example is the health and wellness brand Olly, which experienced a valuation increase of more than 50% after launching on Amazon in Europe. The company had previously only sold its products in the US but saw a strong demand for its products on the continent and was able to quickly gain a significant share of the market on Amazon. These examples demonstrate that it is possible for American brands with no previous business activities in Europe to successfully launch on Amazon and see a significant increase in valuation.
