Amazon in Scandinavia, now what?
Jeff Bezos' giant eCommerce platform has conquered the first Nordic country, Sweden. How does that influence the Scandinavian eCommerce market?
In the Nordic countries, eCommerce has been steadily rising, and the corona pandemic accelerated the shift towards online commerce. In October 2020, Amazon made its entry into Sweden, which will leave an impact on not only the Swedish but the entire Scandinavian eCommerce market.
Together with Amazon experts from Maze-one, we have investigated how you can deal with it - either by harvesting the new sales channels possibilities or fight against the new landscape of competition.
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Online shopping sales are rapidly increasing
Not only was 2020 the year in which Amazon came to Sweden, but it was also the year of the corona, which accelerated digital development by two to three years. Many new people, including the more unmatured digital generations, started shopping online because that was what they could do.
Like corona, Amazon feeds this development because they put price pressure, the eCommerce market becomes transparent, and they raise the bar for the delivery and return of goods.
Amazon will change Scandinavian eCommerce. Is your business ready?
As visualized in the graphic above, Amazon will undoubtedly have a major effect on Nordic online shopping. The consulting company Boston Consulting Group predicts that Amazon may end up taking over up to 20% of Nordic eCommerce during the first 5 years if the development follows the same speed as in other European countries.
“eCommerce in Scandinavia is about to reach new heights in its evolution – Globally Marketplaces account for about 50% of total eCommerce revenue. In Scandinavia, it is about 5-10%. This will change.”
Managing Partner & Co-founder
Maze-One, Global Marketplace Expert
The Scandinavian consumers and companies
Several experts express a consensus that Amazon will change the Scandinavian eCommerce market. At the same time, there is also agreement that this will happen gradually, as the Scandinavian customers are digitally mature consumers, and many well-established Nordic eCommerce companies already exist. Another reason is that Nordic consumers are generally aware of working conditions, the environment, and other softer values.
However, on the other hand, they also have high standards for the online shopping experience, which is reflected in wide assortments, fast delivery, and easy returns - which in all its simplicity is the DNA of Amazon.
How is the Scandinavian customers' relationship with Amazon?
Bring Research has surveyed Scandinavian customers on their experience with buying products on Amazon. One result that stands out is high customer satisfaction. Bring reports, among other things, that 63% of customers were very satisfied with their recent purchases on Amazon, compared to only 52 percent in another online store.
Another interesting result is that Amazon has created a large number of returning customers as 8.5 out of 10 Scandinavian consumers will most likely shop on Amazon again.
Amazon is coming, now what?
Which strategy is right for your business? Get 5 tips whether you want to sell on Amazon or meet the competition