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In conversation with LILLYDOO
LILLYDOO is an experienced Amazon selling partner based in Frankfurt am Main. They have been selling baby care products on Amazon.de for some time and made the decision to expand into the US in 2023.
Amazon has enabled us to sell our high-quality, skin-friendly and premium baby care products to parents in the US. This has brought us closer to our goal of families all over the world enjoying the benefits of our products and falling in love with the LILLYDOO brand.- Anna Lisa SchifferHead of Sales
Tell us about your business and how your Amazon journey began in Germany.
The baby care brand founded in Germany in 2015. Our mission is to provide high-quality, skin-friendly and environmentally conscious baby products that meet the needs of babies and the expectations of modern parents. We started out as a direct-to-consumer (DTC) company, offering our products exclusively via our online platform. This allowed us to maintain a close relationship with our customers and ensure that we were able to meet their needs directly. As we grew, we adopted a multi-channel approach and realised how critical it is to be present where our customers shop. In addition to our own DTC platform, we expanded our reach to Amazon as we saw the huge potential to reach even more parents across Europe.
What inspired you to expand into the US with Amazon?
We made the decision to expand into the US in 2023 because there is huge market potential there and significant demand for high-quality, skin-friendly products such as ours. The US market offers an unparalleled opportunity to reach a diverse and broad customer base, making it an ideal location for a brand like LILLYDOO, which focuses on delivering high-quality baby care products. Amazon offers an excellent platform for launching in the US thanks to its large customer reach and well-established logistics network. We benefit from Amazon's shipping services (FBA), which enable us to efficiently handle storage, shipping and customer service across the country. We are confident that by using Amazon's powerful ecosystem, we can effectively introduce LILLYDOO's unique products to US customers and ensure that we meet their high expectations in terms of quality, convenience and fast delivery.
The US market offers an unparalleled opportunity to reach a diverse and broad customer base, making it an ideal location for a brand like LILLYDOO, which
focuses on delivering high-quality baby care products.
How is your company in the US structured?
LILLYDOO Inc. is a wholly owned subsidiary of LILLYDOO GmbH in Germany.
How did you deal with the issue of tax and VAT? Did you have outside assistance?
We are advised on all tax matters by Rödl & Partner, based in New York. They also process all tax returns for us. Amazon also manages VAT submissions on our behalf.
How did you deal with product compliance and the requirements and regulations of the US market?
We sought advice from providers with experience in the US market, from external consulting firms such as GACCNY and from independent legal advisors. We've also conducted internal investigations.
What tools or software do you use to create and manage listings in the US store?
We only use the Amazon platform and manage everything ourselves.
How are your supply chain or inbound logistics structured? Which delivery method (e.g. package, container, air freight/sea freight)? Do you ship your products yourself or do you use Fulfilment by Amazon? Why?
We prepare our products for shipping to the USA and send them by sea freight to a warehouse managed by our service provider. Our service provider, Crane Worldwide Logistics, manages all of our logistics services. It picks up the goods from us in Europe, takes care of customs clearance and sends them to its warehouse in the USA. It also handles international returns for us. It prepares shipments according to the requirements of Fulfilment by Amazon (FBA) and these are then picked up by an Amazon partner. This streamlined process enables us to manage our logistics efficiently. We selected Crane Worldwide Logistics as part of a tendering process.
What is your advertising and marketing strategy? Which tools do you rely on?
We use a balanced mix of offers, ads and engaging content to create a strong presence on Amazon and effectively attract customers. Deals: Prime Exclusive Deals, Lightning Deals and big promotional days like Black Friday and Prime Day. We use deals as a strategic way to draw attention to our products, particularly as a newer brand entering a competitive market. Deals help us to stand out to potential customers who are not yet familiar with LILLYDOO. They allow us to offer limited-time promotions that create a sense of urgency and increase conversion rates. For new brands, participating in events such as Prime Day and Black Friday is a great way to increase visibility and attract customers who are actively looking for cheap, high-quality products. Deals also help to improve our product ranking by increasing sales volume in a short period of time, resulting in better organic visibility on Amazon.
Advertisements: Sponsored Products, Sponsored Brands and Sponsored Ads. Advertising on Amazon is critical, especially in the early stages when organic traffic is low. Sponsored Ads allow us to showcase our products to potential customers who are actively looking for related items, giving us visibility that would otherwise be difficult to achieve. With Sponsored Products, we can promote individual items, while Sponsored Brands help us to establish LILLYDOO as a recognisable brand and highlight our product range.
Advertisements: Sponsored Products, Sponsored Brands and Sponsored Ads. Advertising on Amazon is critical, especially in the early stages when organic traffic is low. Sponsored Ads allow us to showcase our products to potential customers who are actively looking for related items, giving us visibility that would otherwise be difficult to achieve. With Sponsored Products, we can promote individual items, while Sponsored Brands help us to establish LILLYDOO as a recognisable brand and highlight our product range.
Do you see any significant differences between European and US customers?
Yes, there are some key differences between the European and American markets that impact customer behaviour and preferences, particularly within the Amazon ecosystem. American customers tend to expect faster delivery times and more frequent offers. In the US, services like Amazon Prime are heavily used, and customers are used to next-day or even same-day delivery. American buyers are generally even more receptive to offers. In the US, services like Amazon Prime are heavily used, and customers are used to next-day or even same-day delivery.
American buyers are generally even more receptive to offers, discounts and promotions. In the US, major sales events such as Prime Day, Black Friday and Cyber Monday are cause massive spikes in sales. For this reason, our marketing and advertising strategies are aimed at highlighting offers on the US market. American customers attach great importance to reviews and ratings and often use them as a critical factor when making purchase decisions. Building trust through positive reviews is just as important in the US as it is in Europe, but as we currently still lack brand recognition in the US, reviews are even more important to us in this market.
American buyers are generally even more receptive to offers, discounts and promotions. In the US, major sales events such as Prime Day, Black Friday and Cyber Monday are cause massive spikes in sales. For this reason, our marketing and advertising strategies are aimed at highlighting offers on the US market. American customers attach great importance to reviews and ratings and often use them as a critical factor when making purchase decisions. Building trust through positive reviews is just as important in the US as it is in Europe, but as we currently still lack brand recognition in the US, reviews are even more important to us in this market.
How do you decide which products to sell in the US?
We follow the same product selection as in Europe and start with nappies as our main product. Next, we plan to expand to include trousers and wet wipes. With this approach, we ensure that customers can use all our products for their various needs and gradually become familiar with the brand.
How long did it take for your expansion to be profitable? Can you share any valuable insights you've gained along the way?
It's still too early to make statements about profitability, but we're continuing to learn and adapt.
Where do you see your Amazon business in the US in the next 12 months?
We expect continuous growth and have ambitious plans for the future. In the coming months, we will expand our product portfolio and work to make LILLYDOO known in the US.
Entering a new market, particularly one as competitive and as huge as the US, requires more than just a great product. It's important to invest not only in resources, but also in a clear, data-driven strategy.
What is your summary and key advice for selling partners who are setting out to expand into the US?
Entering a new market, particularly one as competitive and as huge as the US, requires more than just a great product. It's important to invest not only in resources, but also in a clear, data-driven strategy. That means you need to carefully plan your marketing, logistics and operations budget.
And it's just as important to build a dedicated team that's passionate about your brand and mission. This team is the driving force behind your success, helping you to overcome challenges and ensuring that your brand message remains consistent and strong across all channels. And finally, resilience is key. Getting there will undoubtedly pose challenges, whether that's tackling complex regulations, adapting to cultural differences, or standing out in a highly competitive market. If you're prepared to overcome these obstacles with flexibility and persistence, you'll be successful in the long run.
And it's just as important to build a dedicated team that's passionate about your brand and mission. This team is the driving force behind your success, helping you to overcome challenges and ensuring that your brand message remains consistent and strong across all channels. And finally, resilience is key. Getting there will undoubtedly pose challenges, whether that's tackling complex regulations, adapting to cultural differences, or standing out in a highly competitive market. If you're prepared to overcome these obstacles with flexibility and persistence, you'll be successful in the long run.
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