In August 2023, Amazon inaugurated its first fulfillment center in the Netherlands , 25 years after launching the center in Marston Gate, United Kingdom. Throughout the quarer century, the U.S. e-commerce behemoth has generated increasing revenue in the European region, challenging domestic players and quickly becoming the leading e-commerce company in several EU countries. In terms of online traffic, Amazon was by far the
in the region, with nearly double the amount of monthly visits of competitors like eBay.
A hub for small businesses
As the European business economy is largely made up of small and medium-sized enterprises (SME), Amazon plays an important role in e-commerce employment in the region, serving as a contractor for more than 275,000 sellers. The e-commerce giant can count on an extensive network of both distribution facilities and sellers mostly in the UK and Germany. In the last years, logistics services managed by Amazon subsidiaries have also expanded in Spain, Poland, and Italy.
Amazon shoppers
In countries where Amazon has fewer domestic competitors, it becomes the main shopping destination, claiming a larger share of consumers’ digital wallets. In Germany and Italy, online shoppers spent the most on Amazon, with the Italians having the biggest online baskets on average. French consumers were the most reluctant to shop on Amazon, with the lowest share of wallet allocated to the marketplace, as well as the lowest sale increase during Prime days. Besides differences between European markets, Amazon generated most of its sales from consumer electronics, which made up between 22 and 31 percent of Amazon’s sales on European marketplaces.
Turbulent times
2023 marks a peak in Amazon’s lobbying expenses in Europe, signaling the company took initiative to limit EU authorities’ action on several issues – from data protection and treatment of workers to its general monopoly in the European market. As Amazon’s activities range from e-commerce, logistics, media and video streaming to digital and cloud services, the company might influence law making in multiple sectors. Lobbying activity against EU policy making led to unsettling episodes like the banning of Amazon’s lobbyists from European Parliament in early 2024.
Amazon Europe is attempting to recreate the dominance that it has achieved across the Atlantic. Its sheer size makes it hard for local e-commerce players to compete, and its latest political influence is an indication that further growth is on the cards.
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