Amazon's Global B2B Push: A Seller's Playbook
Amazon is pouring $233 million into its international B2B marketplace, starting with India. But for sellers, this global opportunity comes with complex new rules for logistics, tax, and compliance. Here’s what’s really happening on the ground and how you can prepare.
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Introduction
When Amazon drops nearly a quarter of a billion dollars into a single market, you pay attention. Seriously.
The recent news about their $233 million investment in India isn't just about getting Prime packages delivered faster. It's a massive, flashing neon sign about the future of the Amazon B2B marketplace on a global scale.
This move is all about strengthening fulfillment and launching new tech for enterprise sellers. But don't mistake this for a one-off event. It’s a blueprint.
And while the headlines are screaming "India," we're seeing Amazon run this exact same play across the EU, Australia, and Korea. For American brands, this expansion feels like a golden opportunity... a new frontier. But it's a frontier filled with hidden complexities and traps.
The path to success here is littered with logistical hurdles, regulatory nightmares, and financial risks that can, and will, sink unprepared sellers. This isn't business as usual; it's a completely new game.
Key Takeaways
Amazon's $233M Bet on India: The Global B2B Blueprint
You’ve probably seen the headlines. Amazon just committed a massive $233 million to its operations in India, and it’s a move that every serious brand should be watching closely.
On the surface, the news is about new fulfillment centers and faster delivery. But when you dig a little deeper, you see the real strategy taking shape. This isn't just about selling more to Indian consumers; it's a calculated, large-scale investment to fortify its Amazon Business arm.
This expansion is about creating the infrastructure to serve a massive, growing B2B market. According to one source, this will do more than just speed up deliveries; it will “position India as a critical hub for Amazon’s global B2B strategy, further strengthening its marketplace leadership.”
We're talking about more than just a few new warehouses. This investment signals the rollout of new technology systems designed specifically for enterprise sellers and the creation of up to 20,000 new jobs by the end of 2025.
For brands already selling or considering selling on teh Amazon Business marketplace, this is a clear signal: the platform is getting more powerful, more efficient, and more integrated into the global supply chain. It's Amazon laying down the operational backbone for its next big growth phase.
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Beyond India: Mapping Amazon’s B2B Expansion
While the India investment is making waves, it's not happening in a vacuum. It's a playbook we've seen Amazon use before as it quietly expands its Amazon B2B operations across the globe.
From the European Union to Korea and Australia, the strategy is consistent: build a robust fulfillment network that serves both consumer and business buyers, then layer B2B-specific features on top.
And it's an approach that's clearly paying off. Globally, Amazon Business reportedly grew 25% year-over-year through the second quarter of 2025. That’s a staggering number that shows just how much demand there is for a streamlined B2B purchasing experience.
But for sellers, this global expansion means each new market comes with its own set of rules. What works in the U.S. doesn't work in the EU, and what works in the EU is different from India or Korea. Succes requires a deep understanding of the unique challenges and opportunities in each region.
Key International Amazon B2B Marketplace Characteristics
Region | Key Compliance Hurdle | Primary Fulfillment Model | Reported B2B Delivery Speed |
|---|---|---|---|
European Union | VAT registration in multiple countries; EPR for packaging. | Pan-European FBA (stores inventory across the EU). | Excellent (85% under 48 hours via FBA). |
India | Complex GST invoicing and state-level tax rules. | Localized FBA (within India). Relies on local partners. | Variable (2-5 days in urban areas, up to 8 in rural). |
Australia | GST registration required for offshore sellers over AUD 75,000. | Localized FBA (within Australia). | Good (typically 2-7 days). |
Korea | Product certifications and Hangul-language content mandates. | Localized FBA, often with 3PL integration. | Highly variable, depends on logistics partner. |
The Fulfillment Puzzle: FBA vs. FBM in New Markets
For most U.S. sellers, FBA is a straightforward decision. But when you go global, the fulfillment equation gets so much more complicated.
The choice between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) isn't just about who picks and packs the order; it's a strategic decision that impacts your tax liability, delivery speed, and customer satisfaction.
Take the EU, for example. Amazon's Pan-European FBA program is an operational marvel. It allows you to ship your inventory to one country, and Amazon will automatically distribute it across its European network to be closer to customers.
The result? “Pan-EU FBA reduces order delivery time to under 2 days for most customers,” an incredible advantage.
But there’s a catch, and it’s a big one. As one source warns, “Brands using Pan-European FBA in the EU need to register for VAT in every country where inventory is stored—failure to comply results in heavy EU penalties.”
Contrast that with India or Korea, where FBA is a localized affair. Inventory doesn't cross borders, but success depends heavily on the quality of Amazon’s local logistics partners. Prime B2B deliveries might take 2-5 days in a city like Mumbai, but that can stretch to 8 days or more for a rural client. This variability makes managing customer expectations critical.
Some sellers opt for a hybrid approach, using regional 3PLs alongside FBA as a hedge against disruption, a strategy we often recommend when crafting a global marketplace expansion plan.
FBA Model Comparison: EU vs. India
Feature | Pan-European FBA | FBA in India |
|---|---|---|
Inventory Placement | Distributed across multiple EU countries. | Stored within fulfillment centers in India only. |
Primary Advantage | Extremely fast delivery (often under 48 hours). | Access to Prime badge; simplified domestic logistics. |
Biggest Challenge | Massive tax complexity (VAT registration in 5-7 countries). | Delivery speed variability (urban vs. rural). |
Best For | Brands with dedicated resources for tax compliance. | Brands focused solely on the Indian market. |
The Profitability Tightrope: Mastering Landed Costs and Tariffs
Expanding globally is exciting, but that excitement fades fast when a profitable product turns into a loser overnight. In 2025, simply looking at your Cost of Goods Sold (COGS) isn't nearly enough. You have to master your landed cost—the total price of a product once it has arrived at the buyer's door.
This includes the original product cost, transportation fees, customs, duties, taxes, insurance, and currency conversion fees. With the tariff and tax shifts we’ve seen this year, this calculation is more critical than ever.
One analyst noted that “AI-powered landed cost calculators have become essential for global sellers seeking margin protection amid 2025's volatile tariff landscape.”
Why is this so crucial for B2B? Because business buyers purchase in bulk. A small miscalculation on a single unit gets magnified across a large order, potentially wiping out your entire margin.
Manually tracking these shifting variables across multiple markets is nearly impossible. This is where you need modern tools to automate the landed cost formula, giving you a real-time, accurate picture of your profitability on every single SKU in every single market.
Without this clarity, you're not just flying blind; you're flying directly into a storm.
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Compliance Nightmares: Navigating a Maze of Global Regulations
If there's one area that can bring a thriving international business to a screeching halt, it's compliance. This isn't just about paperwork; it's about your legal right to sell.
Each market has a complex, non-negotiable set of rules that can feel like a minefield for the unprepared.
The Big Three: VAT, GST, and EPR
Value Added Tax (VAT) in the EU: This is the most complex beast. As mentioned, using Pan-European FBA triggers VAT liability in multiple countries. You must register, collect, and remit the correct tax in each one. The rules are strict, and the penalties for failure are severe.
Goods and Services Tax (GST) in India & Australia: India’s GST system is notoriously intricate, with specific invoicing requirements that can trip up foreign sellers. In Australia, any offshore brand with over AUD 75,000 in sales must register for and collect GST.
Extended Producer Responsibility (EPR) in the EU: This isn't a tax, but a fee you pay for the environmental impact of your product's packaging. Failure to comply in countries like Germany or France can get your listings suppressed.
Get this wrong, and the consequences are immediate and severe. We've seen it firsthand. One U.S. electronics brand entering the Amazon business marketplace in India was temporarily delisted due to incorrect GST invoicing.
As a case study from SalesDuo notes, “A misstep in local GST invoicing led to immediate listing removal until the brand hired a local compliance expert.”
After fixing the issue, they saw a 25% increase in accepted orders and a 15% drop in returns. It proves that compliance isn't just about avoiding penalties; it's about enabling sales. This is why having a partner for compliance and brand protection is no longer a luxury, but a core necessity for global sellers.
Localization is More Than Just Translation
Getting your product into a new country is only half the battle. To actually sell it, you have to connect with local buyers on their terms.
This means deep localization that goes far beyond running your product titles through Google Translate.
Content and Keywords
Amazon enforces this strictly. In Korea, for example, using native Hangul for keywords and content is mandated. In the EU, you need to think in German, French, Spanish, and Italian, not just English.
This requires professional, market-specific keyword research to understand how local customers search. The term a U.S. buyer uses for an industrial tool might be completely different from what a German engineer searches for.
Customer Support
This is where many brands drop the ball. A German B2B buyer with a technical question isn't going to be satisfied with a generic, time-delayed response from a U.S.-based support team.
It’s no surprise that, according to seller forums, “Prompt, localized customer support is cited... as a top driver of B2B/B2C conversion rates in Korea and Germany.” Investing in native-language support isn't a cost center; it's a conversion tool.
Returns and Post-Sale Support
International returns are a logistical and financial headache. For B2B orders, they can be catastrophic. A U.S. brand that partners with a local firm in India or Korea to handle returns and support can see huge savings and, more importantly, protect their brand reputation.
It shows you're committed to the market, not just trying to make a quick sale.
What Does This Mean for Your Brand's Strategy?
Amazon's global Amazon B2B push presents a massive opportunity, but it’s not a gold rush. Winning requires a deliberate, sophisticated strategy that's built for the realities of cross-border commerce in 2025.
Simply extending your U.S. strategy to new markets is a recipe for failure.
So, what should you be doing right now?
Don't Put All Your Eggs in the FBA Basket: Relying 100% on FBA in a new market can be risky. Leading sellers are hedging their bets by using regional third-party logistics (3PL) providers alongside FBA. This gives you flexibility, helps mitigate tariff risks, and provides a backup if FBA runs into delays or capacity issues. A solid fulfillment and logistics partner is key.
Let AI Do the Heavy Lifting (Seriously): The complexity of international selling is too much to handle manually. Brands with the highest ROI are using AI-driven tools for campaign management, automated repricing, and analyzing Brand Analytics. In fast-changing markets like India, these tools allow you to adapt to demand shifts in real-time.
Stop Trying to Be a Tax Expert in Every Country: You cannot be an expert in German VAT, Indian GST, and Korean product compliance all at once. The case studies are clear: hiring local specialists or partnering with an agency that has them is critical. As one forum post highlighted, a simple GST invoicing mistake led to delisting until a local expert was brought in.
Ultimately, this is about building a resilient, adaptable operation. The brands that succeed will be those that treat each market as unique and invest in the right technology, partnerships, and expertise to navigate its complexities. It's the difference between simply listing a product and truly launching a business.
How Can Sellers Prepare for Amazon's Next Move?
Amazon’s expansion isn’t slowing down. The $233 million in India is just the latest move in a global chess game. For sellers, waiting to see what happens is the riskiest move of all.
Proactive preparation is the only way to ensure you’re ready to capitalize on the opportunity when it arrives in your target region. So what can you do now?
1. Conduct a Thorough Compliance Audit
Do you understand the EPR, VAT, and GST requirements for the markets you're eyeing? Don't wait until you're ready to ship to find out you're missing critical registrations. This is the foundational step, and getting it wrong can stop you before you even start.
2. Analyze Market Potential with Real Data
Don't just rely on gut feeling. Use tools to analyze keyword trends, competitor saturation, and pricing in potential markets like Australia, the EU, or Korea. Is there a genuine demand for your product? Can you compete on price once you factor in the full landed cost? Answering these questions now saves a fortune later.
3. Evaluate Your Logistics Network
Is your current setup agile enough for global sales? Can your 3PL handle international prep, or do you need a partner with a global footprint? Thinking through your cross-border fulfillment strategy is essential. Success in the global Amazon B2B marketplace requires a supply chain that is as sophisticated as your marketing.
Conclusion
Amazon's $233 million investment in India is much more than a regional news story; it's a clear declaration of its global B2B ambitions. For U.S. brands, this opens up a world of opportunity beyond the saturated domestic market. However, the path to international success is paved with complexity.
Navigating the treacherous waters of multi-country VAT, localized GST, and varied fulfillment models is not for the unprepared. The brands that will win are those that move beyond a simple export mindset.
They will invest in deep localization, build resilient supply chains, and master the numbers behind landed costs and compliance. The opportunity is real, but it demands a new level of strategic planning and operational excellence. The time to start building that foundation is now.
Sources
https://www.aboutamazon.in/news/operations/amazon-to-invest-usd-233-million-expand-operations-2025
https://techcrunch.com/2025/06/19/amazon-to-invest-233m-to-enhance-its-india-infrastructure/
https://gccrise.com/amazon-to-invest-233-million-in-india-to-expand-operations-infrastructure/
https://eva.guru/blog/selling-amazon-global-marketplaces/
https://salesduo.com/blog/amazon-global-selling-to-sell-internationally/
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