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Amazon Operations in Europe and the US

Interestingly, Amazon has greatly benefited from the European market, which has become a huge part of its international business. For instance, UK and Germany alone accounted for seventeen percent of the annual sales in 2016 (Whitehead, 2018). Its success can largely be attributed to its expanded distribution networks. Since 2010, it has greatly expanded its infrastructure in Europe, currently reaching nations like Turkey and Romania (Kim, 2017). Presently, the company operates in over fifty nations in the European continent, and its FBA (Fulfillment by Amazon) is eligible in twenty-six nations (Ecommerce News, 2018). Germany and UK are Amazon’s largest market outside the US. In 2016, the two nations generated twenty-three billion dollars in revenue for the company.

Two decades after Amazon began operating in Europe with committed e-commerce websites; the United States company still struggles on the side of the world. Mostly, the company has been experiencing trouble gaining traction in footwear and apparel, which are key fragments of its US dominance. Overall, Amazon has deeply penetrated the European markets. However, unlike in the US, its presence in footwear and apparel market in Europe is less obvious. Experts argue that Amazon doesn’t have top fashion, its websites are not optimized for searching these products, and the European markets have serious competitors like Asos and Zalando. In the United States, Amazon has fifty percent of the online sales market share, and it is the top ranking footwear and apparel retailer with thirty-five percent of the market share (Ecommerce News, 2018). However, in Europe, Amazon has only acquired twenty-two percent of the overall market share and eight percent of the footwear and apparel portion of the market (Whitehead, 2018). Currently, the company is encouraging US merchants to ship their products internationally in order to improve its business in Europe.  

Amazon brands are also widely used in Europe. Kindle, Twitch Tv, Alexa, Prime Music and others have taken Europe by storm. Although they are not market leaders in the business categories they operate in, they have to make a huge impact. Twitch Tv has revolutionized online gaming not only in the US but also in countries like the UK, France, Spain and others. Before Amazon acquired Whole Foods two years ago, the company was already present in London and other parts of Europe (Whitehead, 2018). However, ever since the acquisition, the company has been growing even larger in Europe. Although Amazon’s are not as popular in Europe as they are in the US, experts agree that within the next few years, the brands will grow to become one of the market leaders.

The United States is still the largest global market for Amazon. European markets like the UK are more price sensitive than the US. On the other hand, the German markets is an emerging marketplace with much sensitivity of price, although it’s the biggest EU Amazon market. Germany has complex anti-spam regulations that negatively impact Amazon email follow-up sequence after clients purchase products. For instance, unlike in the US, Germany sellers can only send a single follow-up email to their customers after they make purchases. This limits the freedom of Amazon sellers to promote their products in Germany particularly because emails are very effective in Europe than in the United States where clients have become numb to pleas for programmatically sent feedback after they purchase items on Amazon. In addition, unlike in the United States market where the majority of people speak English, the European market is characterized by different languages which present an obstacle to sellers. Some sellers do not even try to enter this market.

The Culture of Online Shopping in the World Today

Experts agree that the emergence and rise of the internet have transformed the way people live today. Almost every aspect of human life has been impacted the internet, more so the business world. Its rise provided marketers with tools to interact with and sell to people directly. Online shopping is the fasted growing utilization of the internet. It is expected that online shopping will continue to grow in the coming years (Lim et al., 2016).

Currently, people are spending more time on the internet than ever before. Millennials have almost become addicted to their laptops and mobile phones. This shift in lifestyle and culture has also affected business, some positively and other negatively (Lim et al., 2016). Amazon has taken advantage of this shift in behavior by venturing in the online retailing business. More and more people are shopping only, particularly in the United States and Europe. The millennials and post-millennials largely dominate the online retail market and e-commerce. They are more tech savvy than the generations before them, and although the comprise about twenty-five percent of the global population, they account for nearly thirty-five percent of the overall retail spending which is mostly done through the internet (Lim et al., 2016). Consumers today are seeking options that provide them with increased flexibility and convenience. Many companies, including Amazon, are responding to this paradigm shift in the behaviors of consumers. People who shop online have more bargaining power and control than those shopping in brick and motor stores.


Ecommerce News. (2018). Why Amazon Struggles in Europe. Retrieved from


Kim, E., (2017). This Map Shows How Quickly Amazon has Expanded in Europe. Retrieved from https://www.cnbc.com/2017/08/30/amazon-in-europe-c…

Lim, Y. J., Osman, A., Salahuddin, S. N., Romle, A. R., & Abdullah, S. (2016). Factors influencing online shopping behavior: the mediating role of purchase intention. Procedia Economics and Finance, 35, 401-410.

Whitehead, D., (2018). Amazon Market Trends 2018: EU vs the US. Retrieved from https://privatelabeljourney.de/amazon-market-trend…

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