Amazon is the largest online retailer in Europe and today took the next step to make these efforts more local. The company has set up a special portal for Sweden on Amazon.se, where Swedish buyers, third-party suppliers and themselves receive a local URL as well as a local logistics system and a local marketing push for buying and selling goods and services online.
Sweden is the 10th largest economy in the world by GDP and a key market for Amazon and its growth strategy.
However, the news comes at a time when big tech companies, and Amazon in Europe in particular, continue to be screened for competition and tax payments issues – or the lack of tax payments in particular. On the former, the European Commission launched an investigation into the company's antitrust practices earlier this year. On the latter point, Amazon is currently denying a $ 250 million tax burden from the EU, dating back several years when the company was much smaller, but has potentially more far-reaching implications for Amazon's taxation today.
Amazon announced that the local store will launch with more than 150 million products in 30 categories – examples of the popular Swedish brands that will include Electrolux, Lagerhaus, OBH Nordica, Ellos, BRIO, Bonnierförlagen and Ifö – and Will offer free shipping if eligible, orders over SEK 229 (USD 26) processed by Amazon.
Alongside Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, the Netherlands, Singapore, Spain, Turkey, the United Arab Emirates and the USA, it will be Amazon's 17th local portal.
Amazon had already done many retail stores in Sweden.
Europe has long had a system of directing buyers from individual countries that did not offer direct operations to those who were closest to them. Amazon URLs that are localized in Denmark, Norway, Finland, Switzerland, and Poland, for example, use Amazon's German website (Amazon.de) by default, but see the text and some special content in the respective language. (And this is where Amazon.se has shown to this day.)
However, this latest move is about doubling the country's potential to open up dealerships and buyers, and potentially compete more aggressively against local retailers like Ikea and H&M.
"We are very excited to launch Amazon.se and offer Swedish customers a choice of more than 150 million products, including tens of thousands of products from local Swedish companies," said Alex Ootes, Vice President European Expansion at Amazon. in a statement, “Today is just the beginning of Amazon.se. We will continue to work hard to win the trust of Swedish customers by expanding our range of products, ensuring low prices and providing a convenient and trustworthy shopping experience. "
Given that Sweden is the 10th largest economy by GDP, it may come as a surprise that it took so long. However, Amazon has been known to be slow when it comes to introducing certain products globally (for example, it took the Kindle years for the Kindle to break out of its home market in the United States).
That's not to say that Amazon didn't have any other direct business in the country. In Sweden, the AWS cloud business is well established. Earlier this month, the first European clean energy wind farm, built in Sweden to power its Swedish AWS data centers, went into operation.
For local retailers, this means another more direct online marketplace where they can sell goods to local customers who already know their brands but have so far done most of their business through Amazon in other countries.
“The possibilities at Amazon are enormous. Amazon has become our most important export channel and within the first few months after working with Amazon the cash flow was positive, ”said Pierre Magnusson, Head of E-Commerce at N! CK & # 39; S, a Swedish healthy snacks company, in a statement. "N! CK & # 39; S continues to grow and has developed into one of the best-selling brands in our category. In the EU Amazon stores alone, we are recording growth of 50% compared to the previous year."
Elisabet Sandström, CEO of Miss Mary of Sweden AB, a manufacturer of high quality lingerie, added: “Amazon is an important channel for our expansion in Europe and the US. We are now looking forward to selling through the Swedish store when Amazon opens our home country. Our sales on Amazon have grown steadily over 50% per year, and Amazon is our fastest growing channel. Germany is currently Miss Mary's largest customer base. When we entered Amazon.de, we noticed an immediate increase in sales. We are now excited about the opportunity to reach out to new Swedish customers and make them happy. "