Amazon Business to expand in Europe
Ecommerce giant Amazon is planning to expand its b2b division, Amazon Business, in Europe. It is unclear which countries it will target. The company is currently investing in its logistics, to supply European businesses with office supplies in bulk.
The online marketplace has been dealing with rising operational costs due to inflation. As a result of that, it has raised its fulfilment costs in Europe this month. It is also planning to close all of its 68 brick-and-mortar book stores, pop up shops and ‘4-start’ stores in the United States and the United Kingdom.
However, Amazon Business was able to grow its gross sales in Europe at a compound annual rate of 25 percent from 2020 to 2022. The business is currently active in several European countries: Germany, Britain, Italy, Spain and France. Now, it wants to expand further.
“The division is spending on logistics in order to accommodate the larger orders typically associated with company purchases, like desks, chairs and printers”, said Amazon Business VP Alexandre Gagnon. It wants to win contracts with businesses to provide them with office supplies in bulk.
Amazon Business is able to keep higher margins than its consumer business, “because businesses buy in larger quantities, the fulfilment economics are more advantageous.”
Related news
Amazon Launches Low-Cost Grocery Delivery Subscription Plan In The US
E-commerce giant Amazon.com has launched a new grocery delivery subscription…
Read more >6 in 10 Gen Zs prioritise user experience and trustworthy reviews
Over 75% rely on reviews and customer service when shopping,…
Read more >There are serious sustainability issues with packaging in e-commerce
With the rise of online shopping, the optimization of packaging…
Read more >Related news
Euro zone inflation was 2.4 percent in April as well after March
In line with analysts’ expectations, annual inflation in the euro…
Read more >Gergely Suppan: the recession is clearly over in Hungary
The recession is clearly over in Hungary, from now on…
Read more >K&H: the inflation anomaly is clearly visible, but customers perceive it differently
Although inflation has slowed down a lot, according to the…
Read more >