‘How big is the cross border success of Amazon in Europe?’The e-commerce market has changed rapidly the last two decades since Amazon established their position in the market. With a total revenue over $100 billion last year, Amazon became a leading and indispensable player on the e-commerce market. The influence of Amazon on the e-commerce market in the United States is massive. The company is integrating itself in Americans’ lives. Customers will check a product on the Amazon website, even if they have already found it on the e-commerce website, to check if the product is cheaper on Amazon. However, the European e-commerce market environment differs from to the US.
Most European countries have already established marketplaces for B2C, which makes it difficult for Amazon to fight against the majority. Our experience with cross border expansion to new markets is that it requires also a lot of research, adaptation, flexibility and understanding of the new market to be successful. Amazon wants to improve their position in the European market in the coming years expand their market share and create strong growth. This market is important for Amazon because it runs 12 R&D centres for innovation in Europe. Amazon experiments with services like Prime Air, a delivery system using drones. The strategy of Amazon to realize growth is to expand their item catalogue all over Europe to give the customer the ability to buy whatever they want. They are also employing thousands of extra employees in their fulfilment centres to handle the demand. Amazon is not yet on the level where they are in the US where they are almost integrated in people’s lives, however with the announced strategy and the available resources we expect that they will increase their market share in Europe in the coming years.