Amazon's Impact on the Development of E-Commerce

Abstract

A study of Amazon's European expansion in Sweden, the Netherlands and Poland revealed that the company did not perform as expected, with local competitors' knowledge and innovative solutions, as well as local market-specific offers and services, proving more effective than Amazon's global strategy. The lesson from the study is that Amazon should place more emphasis on local market specificities and consumer preferences. This includes taking into account local holidays, customs and the promotion of possible 'holiday' promotions, as well as further optimising delivery and returns processes. Competitors' responses, such as bol.com's commission cuts, and Allegro's investments in markets not yet served by Amazon, further increase Amazon's challenges in these markets. The study suggests that Amazon needs to adapt to local market dynamics and respond strategically to competitors' actions. In short, the Amazon brand name alone is not enough to succeed. The company must do more than simply underprice competitors: it must take into account local market characteristics, competitors, and consumer expectations to successfully increase its market share in these countries. Considering local regulations and government decisions is also an important factor in ensuring your company's success.