Amazon market share in Europe affect local players
Amazon is taking e-commerce market share within Europe
After dominating the US e-commerce landscape, Amazon has started putting lots of effort into succeeding in international markets that have increased Amazon market share in Europe. Nowadays, its European presence is becoming increasingly merciless and presents a threat to other e-commerce sites within Europe, as it is constantly trying to enter new markets and conquer a massive part of e-commerce market share.
Amazon market share in Europe
How does Amazon influence the European e-commerce market?
How real is the “Amazon effect” and how Amazon market share in Europe affect local players? Should European retailers be getting ready for it? And how?
It all started in 1998 when Amazon expanded into UK and German markets. France followed in 2000. By 2010, Amazon had launched in Italy, being swiftly followed by Spain, and then the Netherlands in 2014. Which became the latest European country at that time where Amazon hosted a specialised e-commerce website.
In Germany, the largest European market, close to 50% of total e-commerce takes place through Amazon. And more than half of all product-specific online searches start with Amazon, not Google. It is particularly the products offered through Amazon Prime that have a significant impact on consumer behaviour and loyalty.
In 2020, Amazon officially launched in Sweden, bringing more opportunities for Nordic businesses and opening the doors to highly scalable markets with enormous sales potential.
So, what is the "Amazon effect"?
The meaning of this varies depending on the industry in question. In general, it describes the scenario that many stores face when they have to compete with Amazon. The online retailer's wide selection, fast shipping, low prices, free returns and "Prime" service, tend to create high customer expectations. Which can be challenging for other retailers to match.
Will it destroy the competition? Well, it depends. Studies show that Amazon's success has caused some businesses to close. But at the same time, dozens of companies have tackled the Amazon effect, head on, to compete for customers. The Amazon effect is a good reason why the retail environment is in flux.
Is Amazon coming to Denmark?
As soon as the Danish e-commerce market heard rumours that Amazon was planning to come to Denmark, the story was massively covered by the press and the media, which alerted all the webshop owners in the country.
History has shown that in any European market where Amazon has established its e-commerce platform, a situation is then created where one dominating e-commerce player has the monopoly. Amazon piles on the pressure because it has the muscles to outperform everything and everyone on both price and delivery.