Amazon Business is set to enter new markets, both in Europe and beyond. 

 

Speaking to Reuters in London, Amazon Business VP Alexandre Gagnon said Amazon’s B2B arm was planning to expand in Europe and internationally – although he didn’t specify which countries. 

 

Given that Amazon Business is likely to open in countries where Amazon already has some scale, future possibilities likely include Australia, the UAE, Mexico, Brazil and Turkey. Given its proximity to Germany and the online purchasing maturity of its consumers, the Netherlands could also be on the list.

 

Amazon Business – started in the US in 2015 – came to Europe in 2016 when it launched in Germany. The UK followed a year later, with France, Spain and Italy added in 2018. The unit also operates in Canada, India and Japan, meaning Amazon’s nine largest markets are already covered.

 

As Amazon CEO Andy Jassy revealed in his recent annual shareholder’s letter, Amazon Business is trending at an annualised revenue rate of around US$35 billion. 

 

Amazon Business is spending on logistics to make it easier for companies in Europe to buy items such as office chairs, desks, paper and printer ink in bulk, with a view to winning contracts to supply them.

In a recent blog post, Amazon Business Director Todd Heimes highlighted the opportunity the company has to work with large customers. He said these businesses typically negotiate and buy from a limited set of suppliers, while Amazon

 

Business enables them to access hundreds of thousands of suppliers in one store.

 

“It’s a really big opportunity for those large organisations,” he said. “It allows them to become much more efficient, reduce costs and streamline their suppliers, which is a huge benefit to them.”

 

Another area that Amazon Business is looking at is bulk purchases.

 

“If you want buy 500 black chairs, we will take that quote, send it out to sellers we know sell chairs, and give them the opportunity to bid on that order,” Heimes said in the blog post. “It’s called a ‘request for a quote’, and it’s our offering to address our customers’ forecasted and large purchase needs.”

 

For more on this story and other global news from OPI, go to https://www.opi.net/news/analysis/amazon-business-poised-to-expand/