Amazon announced on January 15 that it will launch new categories this year, in addition to the books that are now only available on Amazon.nl. Dutch and foreign companies that want to offer their products via Amazon in the Netherlands can now register on services.amazon.nl. The official start seems to come at the end of February.
Amazon Netherlands announcement
"We are delighted to launch a more extensive shopping experience on Amazon.nl," said Alex Ootes, vice president of EU enlargement at Amazon. “Selection, value and convenience are the main drivers of our retail experience for Amazon customers and Dutch companies play a crucial role in delivering them. We are pleased to offer Dutch companies, small and large, the opportunity to sign up to sell on Amazon.nl and reach a larger audience, both at home and abroad, which increases the selection for our Dutch customers. "
“We are delighted to take the next step to grow our business in the Netherlands. Today we announce that we will expand Amazon.nl later this year and offer our Dutch customers a larger and wider selection of products, "said Roeland Donker, Country Manager Benelux. “We have just started, but we are optimistic that over time we will focus on customer confidence in the Netherlands by focusing on the things that we think customers value the most - low prices, extensive selection and fast delivery . "
Price battle on the way
Amazon has been in the Netherlands for several years, first with the cloud. In 2013, Amazon Web Services (AWS) opened its first Development Center in The Hague, and an AWS office in 2015. The step this year is aimed at e-commerce. However, Amazon is already one of the top six in the Netherlands in terms of turnover. To do this, it took minimal effort: translating the German Amazon site into Dutch, offering Amazon Prime to the Dutch in 2017 and making iDEAL possible as payment in 2018.
With this announcement now in 2020 and an invitation to selling parties to register, a true price war can be expected with web shops and retailers. With this official entry millions of products are being introduced on the Dutch market. It concerns categories such as food, clothing, electronics and beauty products.
Price battle affects web shops and physical retailers
Generic products are about low prices and availability. The competitive edge and fame of Amazon makes it possible for the e-commerce giant to win every competition for this type of product. Parents who buy piles of diapers every month, for example, will be guided in advance by price. Retailers and retailers in particular will therefore feel the arrival of Amazon. In America there has been a term for this for some years: Death by Amazon.
This term was coined by the Bespoke Investment Group in 2012. It follows an index of 54 store shares, the so-called 'Death by Amazon index', which the group considers the most vulnerable to Amazon. Dramatically yes, macro-strategist at Bespoke George Pearkes says to The Guardian, but it does well reflect what happens in retail land when Amazon comes.
How to survive Amazon?
Distinguished yourself. Do you sell special niche products in a relatively small market? Then offers Amazon as a sales channel opportunities to reach a much larger target group. For that you give a margin, but you win the customers and the market. Prefer not to be on Amazon? Then focus on service and added value. Many stores only offer generic items with the distinction of local availability. But when exactly the same product is offered online at half the price, on which purchase arguments do you still retain your customers? The adage has been for years: shopping is experiencing. Do you make your customers happy with a cup of coffee and a good conversation? Personal advice that makes sense? Useful local services that think along with you?
Also the combination of online and offline, so-called omnichannel, will have to be fully embraced. So: being able to order from the store, pay and have it delivered to your home. Or: order at home and then pick up and pay at the store. If you set that up properly, then you have an asset that Amazon can never refute: physical presence.