E-Commerce Giant Investing Heavily in Europe
If Amazon is not already known as the global online shopping authority, they will be soon. The e-commerce giant is already responsible for as much as 34% of all online shopping in the United States and according to experts they will be the dominant force in the US digital commerce realm by 2021. But, what about Europe?
Amazon Pushing for Prime in EuropeWith around 80 million Prime members in the US, it can be safely assumed that this is the biggest driving force behind Amazon’s increasing popularity – and this popular two-day subscription shipping service with all its’ perks will be making its way to Europe soon. In late 2017 the company invested in 1,300 warehouses throughout Europe, all set to be distribution points serving Prime Now – the one-hour delivery service available to Prime members.
Meeting Germany and France’s Online Shopping Needs
The small warehouses dotted across Europe are also set to cater to Amazon Fresh, the company’s grocery delivery service – perfectly timed to accommodate Germany, which is expected to experience a massive expansion in online grocery delivery requirements – as predicted by experts. France is also said to benefit from the investment. Although the order volume in the country has dropped, France has been experiencing an increase in orders, making the free shipping perk an ideal service.
It’s Not Surprising
To those who have been paying attention to Amazon’s investment potential and earnings call – this would hardly have come as a surprise. A shift away from the United States has been in the cards for a while. As in 2017 the European e-commerce market is estimated to be worth around US$545 billion and the total sales Amazon made outside of the United States and Canada was a mere US$44 billion, which totals to less than half of the sales in North America (which amounted to around US$80 billion). Growing Amazon’s Prime membership is expected to drastically increase these numbers.