In the competitive world of health and nutrition, global expansion is the ultimate goal, offering the opportunity to reach diverse consumer bases and increase revenues. However, breaking into international markets, especially through a platform as vast as the Amazon international marketplace, is not without its challenges. In this article, Lee Gray, Director of Business Development at Rubicon Bridge, shares his insights on navigating the hurdles of regulatory compliance and seizing opportunities in global e-commerce.

The Appeal of the Amazon International Marketplace for Global Expansion

Amazon has become a key player in enabling international business and global expansion, particularly in the health and nutrition sectors. Its vast reach and trusted reputation make it an attractive platform for brands looking to scale globally. Europe ranks as the second-largest region for the e-commerce giant, presenting enormous potential for dietary supplement brands. Countries like the UK, Germany and Italy are particularly attractive, boasting established e-commerce markets and a growing demand for innovative products.

However, entering these markets isn’t simply a straightforward matter of listing products. Amazon enforces stringent regulatory compliance requirements, which often exceed those of local governments. This rigorous approach ensures that products are fully compliant with national regulations before they hit the market, presenting both a challenge and an opportunity for brands aiming to build consumer trust.

The U.S. Perspective: From Boom to Balance

The U.S. dietary supplement market experienced a remarkable surge between 2019 and 2020, driven by a worldwide focus on immunity and wellness during the COVID-19 pandemic. However, growth has since stabilized, with predictions of a 3-4% annual increase through 2025. This shift has led many American brands to look beyond their borders for global expansion opportunities.

Europe presents a particularly appealing prospect for these companies, offering a substantial, largely unified market and a strong appetite for U.S. products. However, cultural nuances and regulatory compliance differences demand careful navigation.

Trends to Watch: Blurring Lines Between Health and Performance

One fascinating trend we’ve noticed here at Rubicon Bridge, is the merging of sports nutrition and vitamins, minerals and supplements (VMS). Historically seen as distinct categories, these sectors are converging as brands develop products that cater to both performance and general health. For example, sports nutrition products that promote long-term wellness are resonating strongly with consumers, especially the elderly.

Conversely, European brands entering the U.S. market have found success by emphasizing their heritage and expertise. Stories of long-standing traditions and practitioner-backed credentials often resonate with American consumers, demonstrating the power of authenticity in branding.

Common Mistakes in Regulatory Compliance

Global expansion requires more than identifying target markets – it demands meticulous attention to regulatory details. All too often, brands underestimate the complexity of these requirements, especially when launching on the Amazon international marketplace. Food supplements are treated as restricted products, requiring upfront evidence of compliance tailored to each country.

Some of the most common mistakes include:

Labeling Errors

U.S. brands often mislabel products as “dietary supplements” instead of the European term “food supplements.”

Health Claims Misalignment

Unlike the U.S., Europe operates under a strict list of authorized health claims. Attempting to retrofit U.S. claims often leads to non-compliance.

Pre-Market Notifications

In countries like France, Italy and Spain, pre-market notifications are mandatory. Amazon requires proof of these to approve product listings.

To streamline this process, partnering with experts like Rubicon Bridge, who are revolutionizing regulatory compliance, can help you save time and avoid costly mistakes.

The Role of E-Commerce Accelerators

For brands overwhelmed by the complexities of global e-commerce, accelerators provide a valuable solution. These third-party sellers purchase stock from brands and handle everything from distribution to optimizing product visibility on Amazon’s platform.

While working with accelerators may reduce profit margins, they bring proven expertise in navigating the Amazon international marketplace ecosystem. For many brands, the trade-off is worth it, particularly when compared to building an in-house e-commerce team from scratch.

Strategic Market Entry

When planning international expansion, prioritizing markets with significant potential is key. For U.S. brands entering Europe, the UK, Germany and Italy typically top the list due to their size and consumer demand. Beyond these, you should definitely prepare for Amazon’s three other major European markets – France, Spain and the Netherlands – to maximize future opportunities.

Regulatory challenges vary by country. For instance, Germany’s strict upper nutrient levels and France’s critical review of pre-market notifications can throw up hurdles. However, mutual recognition within the EU allows for some flexibility, such as using French approval as evidence for other markets.

Key Takeaways for Success

If you’re a brand manager considering global expansion, thorough preparation is crucial. It’s vitally important to engage regulatory experts early in the process to understand country-specific requirements and avoid last-minute scrambles.

Additionally, exploiting trends, like the health-performance crossover we mentioned above, can help your brand differentiate itself in competitive markets. By tailoring products and messaging to regional preferences, you can begin to unlock significant growth opportunities.

Finally, partnering with experienced accelerators and regulatory consultants, like Rubicon Bridge, can simplify the journey, ensuring regulatory compliance and maximizing visibility on Amazon’s platform.

Expanding globally through the Amazon international marketplace is both an art and a science. With careful planning and the right partners, health and nutrition brands like yours can turn the complexities of international markets into stepping stones for success.

Break Borders with Rubicon Bridge

Want to expand faster, quicker and smarter into overseas markets? Discover how Rubicon Bridge’s Reg Tech Tool™ can help by booking a demo with us today. Alternatively, call us on +44 (0)1482 690156 or email info@rubicon-bridge.com.