Amazon was ridiculed when it took over Sweden exactly one year ago with an online store where merchandise was displayed with machine translations.
Amazon’s entry into Sweden appears to have been lukewarm, as two of its most powerful cards have yet to be used. It’s about fast delivery and the Prime subscription service, which is actually reminiscent of a customer club.
Amazon is now taking action by improving home delivery and introducing Amazon Prime in Sweden.
It is expected to have immediate effects. According to the Boston Consulting Group (BCG), the Internet giant Jeff Bezos could raise tens of billions of kroner in its turnover in a few years.
BCG estimates that Amazon could capture 5-10 percent of the market across the entire Nordic region within five years. The total e-commerce market in the Nordic region is estimated at NOK 230 billion.
It is at least interesting that BCG rejected the estimates for 2018, when they expected Amazon to take 8-20 percent of the North market.
Although the startup was somewhat tentative, BCG still believed that Amazon could become one of the largest pure e-commerce companies in the Nordic region.
In Sweden, Amazon has the most customer visits with 13 million visitors per month, According to Dagens Industri.
Within a year, Amazon captured three percent of the market in Sweden. Now it is Denmark’s turn, and perhaps Norway as well, for the next stage.
– Before Prime Prime, Amazon’s offering in Sweden was somewhat weak, but when Prime is on, the traffic to the Amazon platform will increase. App downloads are already increasing, and it’s no coincidence that the service is now launching before Black Week and Christmas, David Sandberg, e-commerce expert at BCG tells DI.
For NOK 59 per month, Swedish customers can have goods delivered for free at home as well as get Prime Prime service. The price is lower than in many other countries. In Norway, the cost of the energy service alone is 65 NOK.
delivered on the day
In the United States, its distribution network has been one of Amazon’s strengths.
Recently, Amazon’s new head of Sweden, Gelvim Toygar, said that they will now offer same-day deliveries in Stockholm. So far, Amazon has used traditional logistics companies and deliveries have taken up to two days.
Amazon has now acquired Swedish home delivery company Airmee to improve the offer on last mile home.
– We use several delivery players and they are all great. Postnord, Airmee, and Bring. The system works very well, but the challenge is that Sweden is big and how do we get to the farthest places? That’s something we’re working on with our partners, Toygar tells DI.
In Norway, Porterbuddy specializes in same-day delivery and has positioned itself at the forefront of an anticipated entry into Amazon. Among others, it has entered into partnerships with a number of Norwegian e-commerce giants such as Varner and several online stores that were part of Stein Erik Hagen’s e-commerce empire. (Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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