Let the games begin...

29. April 2020
by Bob Chermin

There has been speculation in the media that Amazon is looking to launch a full store offering in the Netherlands in 2020. With good size players already present in the market, such a change would cause some interesting dynamics to evolve.

Some thoughts for retailers and suppliers:

We would expect that Retailers and Suppliers would see some price pressure in the market - Amazon prices in Germany are typically below those in the Dutch market

Retailers should aim to differentiate by supporting the whole consumer buying decision with localized content - to win vs Amazon, you need to play a different game

Suppliers should

  • Utilize their local knowledge in the first months to capture the top seller positions - every new launch requires recalibration of the A9 algorithm, creating a new opportunity to capture that top spot
  • Only compete with products on the platform where they can differentiate versus their own suppliers - marketplace on Amazon allows the global supply base to become competitors

We watch these developments with interest. Let the games begin...

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.

Amazon wants to turn its Dutch website into a fully functional web shop in 2020. Until now, only e-books have been for sale on that Amazon.nl; for other products, Dutch customers are referred to Amazon.de.