In France, Amazon has expanded its web in all sectors. Here’s what you need to know about the band from Seattle.
The logo in the form of a smile changed the face of worldwide distribution. Since its founding in Seattle in 1994, Amazon has become an essential e-merchant, specialist in fast delivery, an optimal online experience and a plethora of offers. But Amazon is more than just a merchant. The American group has expanded its business over the years: a highly profitable cloud service (AWS) in 2006, a marketplace for traders looking to sell for commission on its platform in 2003, premium video, the Netflix-like video-on-demand platform in 2006…
In 2017, Amazon’s revenue reached more than $177.9 billion. “This incredibly rapid growth, rarely seen in the history of the economy, was made possible by the typical web business model: rapid global deployment and then drive for profitability,” summarizes Yves Marin, partner at Bartle and specialist in consumer goods. In comparison, Carrefour achieved a turnover of 88.24 billion euros in 2017 and Walmart, the world leader in distribution, 500.3 billion dollars.
Amazon United Kingdom
Amazon landed in France in 2000, after the United Kingdom and Germany, as a simple online bookseller. Today, his official numbers are scarce, but here are a few. The company refers to nearly 250 million products. On its marketplace, nearly 10,000 French VSEs and SMEs sell for commission. According to a Kantar Worldpanel survey for LSA, Amazon holds 20.2% of the market share of online spending, excluding food sales.
At the end of 2017, the Seattle giant employed nearly 5,500 people in France.
The jobs Amazon creates in France are mainly commercial and logistics. The R&D centers are not located in France. At the end of 2017, the Seattle giant employed nearly 5,500 people in France and announced that it would increase to 7,500 people over the course of 2018. Amazon has 5 warehouses in France in Saran (Loiret), Montélimar (Drôme), Lauwin-Planque (Nord), Sevrey (Saône-et-Loire), Boves (Somme) and a small Parisian warehouse for Amazon prime now. A warehouse is under construction in Bretigny-sur-Orge (Essonne). In addition, there are sorting offices throughout France and the Amazon Web services premises in Courbevoie. The head office is located in Clichy in the Paris region. The director of Amazon in France is Frédéric Duval.
The Amazon Prime loyalty program is meant to be effective. This is a plan that allows for free and unlimited delivery. “This loyalty program is completely based on a transaction and logistics model,” explains Yves Marin. In other words, Amazon does not bet on so-called “relational” programs, that is, offering original experiences aimed at creating a privileged connection with the brand.
Amazon Prime exceeds 100 million paying subscribers worldwide
Amazon Prime was launched in 2005 in the United States, in 2008 in France under the name “Premium”. In 2018, it surpassed 100 million paying subscribers worldwide, according to the group’s latest financial reports. In 2017, Amazon shipped nearly 5 billion items worldwide with Prime.
The costs of Prime are 49 euros per year or 5.99 euros per month. In return, Amazon offers several free deliveries on more than 2 million items:
- Express (2 to 5 business days)
- Same Night Eligible Areas
- Within 1 business day.
In addition, subscribers get access to Prime Video series and movies. They can also read digital books in a regularly updated catalog (Prime-reading) or even listen to 40 hours of music per month on 2 million titles without advertising (Amazon music).
Amazon Prime Day
This is the day Amazon spoils its Prime subscribers. In 2017, Amazon Prime Day, this commercial event of promotions and discounts for the Prime loyalty member, took place from July 16 to 17, 2018. The e-merchant is still waiting for the last minute to announce this date in order not to be competitors don’t give the time to respond online. In general, the event takes place in early July.
In 2018, almost two million products were purchased by Amazon Prime members in a day and a half
How did Amazon rate the event in 2018? In France, in a day and a half, almost two million products were purchased by Amazon Prime members in 2018. One of the most popular products: Amazon Echo, the fifteen-month subscription to Playstation Plus or games education Lunii. Globally, more than 100 million products were sold during Prime Day 2018, more than the sales of Black Friday 2017.
Amazon Echo and Alexa
“Alexa, what’s the weather like today?”, “Alexa, order me a three cheese pizza at Domino’s” or “Alexa, turn off the light in the living room and start my music playlist”…. Here are some examples of what Amazon’s Echo Connected Speaker and Alexa’s Artificial Intelligence can do.
Echo and Alexa arrived in France in June 2018, two years after its official release in the United States. In total, the Echo range consists of eight terminals: Echo, Echo Dot, Echo Spot, Echo Plus, Echo Show and Echo Look, all of which will eventually be available in France. Here are all the details about Alexa and Amazon Echo.
Bulbs, pens, lamps for a seminar… Since February 2018, Amazon in France has been trying to meet the product needs of companies with its Amazon Business service. In concrete terms, on Amazon.fr, professionals can buy what they lack, at advantageous prices, all with an interface comparable to that of the general public, with possible discounts on large purchases or even with a simplification for downloading invoices.
Amazon Business specializes in small non-strategic purchases
In 2018, Amazon targeted ten billion dollars in business volume in 2018 in the eight countries where this B2B platform is present (Japan, India, United States, United Kingdom, Germany, France, Italy and Spain). Amazon specializes in small non-strategic purchases (class C), which usually have a value of less than 5,000 euros.
Amazon Black Friday
Amazon’s Black Friday is a strong commercial moment for Amazon. In 2017, the latter sold nearly two million units on Black Friday alone, with peak orders of 1,400 per minute. In 2018, Amazon offered nearly 70,000 products for sale throughout the week of Black Friday. For the occasion, the American e-merchant even opened a short-lived store, called “Amazon Christmas House”. In this 350 square meter space, a first in France for the e-retailer, the products could be tried out and then ordered online from a tablet on site.
Amazon is also working to get off the web to create stores of the future. The name of his project in this area: Amazon Go, a supermarket without tills, where the customer takes their items off the shelves and leaves without queuing. Everything works on the basis of image analysis by the camera and the consumer’s smartphone. This innovation forced distribution professionals in France to experiment with similar models such as the 4 Casino or Monop’Easy. “You have to keep in mind that Amazon invests more than 10% of its turnover in research and development. No retailer can compete technologically: most never exceed 1% of the R&D expenditure of their turnover,” underlines Marine Yves .
“Amazon invests more than 10% of its sales in research and development. No retailer can compete technologically”
These Amazon Go stores are meant to be deployed everywhere. In January 2018, a first test store opened in Seattle exclusively for employees. The company hopes to open 3,000 worldwide by 2021. Amazon also plans to open its first Amazon Go in London soon, according to The Telegraph.