Industry information

Amazon is expanding its supply of office supplies in Europe in pursuit of higher profits and growth!

2024-07-09 09:23:59 zhangtq 1

    AMZ123 has learned that according to foreign media reports, Amazon plans to increase its influence in the global market by expanding its supply of office supplies in Europe. Due to the impact of the pandemic, more and more businesses are shopping online and seeking bulk discounts.

The e-commerce giant is seeking high-growth, high-margin businesses to weather the current economic downturn, fend off expenses, and cut costs. Previously, Amazon announced plans to close all 68 of its physical bookstores, pop-up stores, and "4-star" stores in the United States and the United Kingdom, as well as end some long-term experimental projects in physical retail.

Alexandre Gagnon, vice president of Amazon, said that from 2020 to 2022, the total sales of Amazon Business had a compound annual growth rate of 25%.

Amazon Business was first launched in Germany in 2016, expanded to the United Kingdom the following year, and then to Italy, Spain, and France in 2018. Some of Amazon Business's corporate customers in Europe include Siemens Gamesa, Centrica, and ABB. It also offers IT and healthcare equipment as well as school products.

Alexandre Gagnon said that Amazon is investing in logistics to make it easier for European businesses to purchase items like office chairs, desks, paper, and printer ink in bulk, aiming to win long-term supply contracts.

However, Amazon has not disclosed which countries the new initiative will target.

   The report said that this business offers higher profits than Amazon's primary consumer business, as the cost of shipping fewer but larger shipments is lower compared to millions of small packages.

"Since businesses order in larger quantities, the cost of delivery is lower," Alexandre Gagnon said. He also indicated that Amazon would offer discounts to businesses that order in larger quantities.

AMZ123 understands that entering the office supplies sector is part of Amazon's expansion strategy to diversify its business and tap into new markets. In 2020, the company also launched Amazon Pharmacy in the United States to expand its healthcare business. Through these initiatives, Amazon is positioning itself as a dominant player in the global market.

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