The e-commerce giant Amazon has announced plans to launch in Sweden through its website Amazon.se. With this move, the company is planning to establish a local presence in the Nordic countries. Up until now, the Swedish customers had to use the other websites of Amazon in Europe like Germany to get their purchases shipped with high-delivery charges.
Alex Ootes, vice president for EU Expansion at Amazon, said, “Amazon has been supporting Swedish customers and selling partners across our different European stores for many years, but the next step is to bring a full retail offering to Sweden and we are making those plans now,”
Benefitting from COVID-19
This move comes at a time when the online retail giant is benefiting from an influx of consumers trying to avoid physical shop due to the COVID-19 pandemic. However, the company didn’t disclose any information regarding the launch date, warehouse, and distribution hub in Sweden.
Ootes said: “We are excited to empower small Swedish businesses through Amazon and are investing in tools and services to help them grow. We’re optimistic that by focusing on the things we believe customers value the most – low prices, vast selection, and fast delivery – over time we will earn the trust of customers in Sweden.”
Big challenge for local players
As per the company claims, new opportunities will be available for Swedish businesses to reach new customers, with third-party sales now accounting for approximately 60% of all physical products sold on Amazon globally.
The launch of Amazon in Sweden could pose a big challenge for the local player. “We are positive on Amazon’s plans and are convinced that the increased competition will lead to even stronger growth for e-commerce in Sweden,” said Per Ljungberg from the Swedish Digital Trade association.
Pierre Magnusson, Head of E-commerce at N!CK’S, the Swedish healthy snack business, said: “The opportunities on Amazon are enormous. Amazon has grown to become our most important channel for exports, and within the first months of working with Amazon we were cash flow positive. N!CK’S continues to grow and has become one of the best-selling brands within our category, and we are still seeing 50% year-on-year growth in the EU Amazon stores alone. I would definitely recommend more Swedish companies start selling on Amazon.”
Last week, Amazon reported $ 88.9 billion (approx €75.5 billion) sales last quarter, 40% growth from last year. The profit also doubled to $ 5.2 billion (approx €4.4 billion) even during the warehouse expansion and coronavirus-related expenses.
What do you guys think about Amazon’s entry into Sweden? Do let us know in the comments below.
Main image credits: Tada Images/Shutterstock