🌍 How Amazon Brands Can Expand Internationally to Avoid Tariffs
In today’s uncertain, ever-shifting, tariff-heavy trade environment, many brands are searching for ways to protect margins and unlock new growth. One of the most effective, and often underutilized, strategies is international expansion.
For Amazon-native brands that already manufacture overseas, expanding internationally can be a relatively smooth path. If executed well, it allows you to bypass tariffs, generate new revenue streams, and gain new customer insights in diverse markets.
This guide covers the basics of why, when, and how to take your Amazon success international.
Why Expand Overseas?
Expanding beyond the U.S. isn’t just about chasing new sales, it can serve as a hedge against changing policy to protect your business. While as recently as seven months ago, the growth opportunity might not have been worth the effort, now the math has changed for many brands.
Here’s why brands should consider moving into a new market:
Tariff avoidance: If you manufacture overseas, importing directly from your factory into international markets can bypass U.S. tariffs entirely.
Risk hedging: Diversify your revenue streams to protect against disruptions in U.S. business. When you don’t know what changes are coming next, spreading your bets covers your downside.
Proven playbook: Success on Amazon U.S. often translates well to Amazon’s local marketplaces. Existing listings, reviews, and sales velocity can give you a head start.
Customer insights: Global markets bring new data about customer preferences, helping you refine product development and marketing back in your core channels.
Who Should Expand?
Not every brand is ready for international growth. Expansion makes the most sense if:
You have a strong Amazon U.S. presence that’s easily replicable abroad.
Your products have broad international appeal, not limited to U.S.-specific needs or tastes.
You can manage compliance requirements (safety, labeling, regulations).
Your brand has sufficient scale to absorb startup costs (logistics, compliance, translation). Getting started can be capital intensive.
If you’re still finding product-market fit in the U.S., it’s better to stabilize before expanding. Consider expansion if you have a strong track record and feel good about your U.S. sales growth and operations. You don’t want your business to fall apart if you take your eye off of it for a second as you focus on new markets.
Where to Expand?
Choosing the right international market is critical:
European Union (EU): Large market size, but added complexity with multiple languages and regional rules.
Japan: High purchasing power, but Amazon is less dominant (Rakuten and others matter).
Latin America (LATAM): Rapidly growing e-commerce adoption, though logistics can be more complex.
The Gulf Cooperation Council (GCC): A regional with growing taste for US brands and luxury goods. High spending power can offer good margins.
💡 Pro Tip: Before launching, review your competitors’ presence in target markets. Analyze pricing, reviews, and positioning just as you would for a U.S. launch.
How Does It Work? Expansion Models
There are several ways to structure your international sales. Each comes with trade-offs in margin, complexity, and control:
Pure Distributor Model
Mass sales of products by the container to an importer who handles everything.âś… Paid upfront (with net terms).
❌ Lower margins and less brand control.
Consignment Model
Partner with a business that owns seller accounts and manages listings/logistics.âś… Lower operational burden. They will usually help you import.
❌ Less visibility and control over marketing and pricing.
Agency / Provider Model
Build your own seller accounts, infrastructure, and hire a local agency to manage listings, ads, and operations. You will need an Importer of Record; this can be an attorney’s office in most markets.✅ Highest control and long-term margin.
❌ Requires importer of record, tax management, and stronger operational setup. You will do a lot more work.
Every region has different requirements for importation, and different quality levels of providers in each category. What works for one region or country might not work for the next.
Why Local Agencies Matter
International expansion isn’t just copy-paste from the U.S. Local partners are critical because they help with:
Professional translations: Don’t rely on AI alone—buyers, and Amazon’s algorithm, can spot poor localization instantly).
Local market insights: Category nuances, competitor strategies, consumer habits.
Logistics navigation: Which carriers can actually get your product to Amazon fulfillment centers. Who is a reliable 3PL.
Multi-marketplace strategy: E.g., Rakuten in Japan, Mercado Libre in LATAM.
What to Include in Your Agreements
When working with distributors, agencies, or local partners, contracts should protect your brand. Make sure you understand who will legally own the product at what point, how taxes work, etc., and have all of that clearly spelled out in your agreements. Be sure to have:
Channel restrictions: Limit them to specific markets to prevent gray-market selling.
Ad budgets: Cap ad spend if your agreement is commission- or fee-driven.
Replenishment autonomy: Allow partners to reorder from your factory or local 3PL within agreed restrictions, reducing your operational burden.
💡 Often, providers already have preferred partner networks — leverage these introductions to build an end-to-end support system.
Final Thoughts
International expansion can be a powerful way for Amazon-native brands to:
âś… Avoid tariffs
âś… Diversify revenue streams
âś… Accelerate growth by replicating U.S. success
But success depends on choosing the right markets, partners, and expansion model.
At Crossover Strategies, we help brands navigate this process by identifying trusted partners, setting up infrastructure, and managing negotiations.
đź“© Reach out if you want help exploring international growth opportunities.
Or contact me directly at Michael@CrossStratinc.com