Amazon To Depend On Online Grocery Shopping Amid Europe Expansion
Amazon will make online grocery shopping and delivery the focal point of European expansion plan in 2016
At this moment, Amazon Inc. is very much focused on its European expansion plan. The company is preparing to expand its services in the European region where it will be taking various top services ‘deeper into the continent’. This includes the services, online grocery shopping and online delivery, which are already a success in a few regions encompassing of United Kingdom. The Seattle based firm is the biggest and largest online retailer in the United States which recently surpassed the likes of its domestic competitors Wal-Mart and EBay Inc.
Online grocery shopping and delivery is the top service that Amazon provides throughout the world. However, the retail of food items is still not represented like the same other goods and products are done. Hence it is the most under represented part of the online retail space by the company but it expects to change strategies in order to make it work in the near future. According to analysts it is believed that more global consumers are expected to prefer and go for online shopping in 2016 than they did last year.
This is good news for Amazon regardless as the US e-commerce giant is steadily generating revenues not only in the United States but in foreign markets as well. Study shows that Amazon’s two major markets are North American and Western Europe from where it generates major chunk of its revenues. Furthermore, the firm has captured a bigger market share in these regions in the past years.
According to a statement issued by Amazon, it is said that the total work force of the company in Europe is more than 40,000 employees and it will further add a several thousand more amid is European expansion plan in 2016. The Financial Times reported that online grocery shopping and delivery will play a major part in the expansion strategy. Moreover, Amazon’s sales in the Western Europe region are constantly increasing and at some points it has even surpassed the expectations. Hence these are the positive signs for the firm as it looks to further expand its services in the continent.
An analyst at Moody’s, Charlie O’Shea, stated in an interview to Quartz, “When I look at Amazon, you’ve got a very sophisticated grocery market in the UK, that I would argue is more advanced than it is in the US. We would expect the UK model to be more the model when expanding the grocery delivery business to larger continental cities.”