Amazon Inc., the US-based global e-commerce retailer, which has been taking measures to stay ahead in the retail space, is facing a tough time in the European market.
Contrary to its domestic market where it commands 35 per cent share, Amazon just has 8 per cent market share when it comes to apparel and footwear in Western Europe.
The Wall Street Journal citing Euromonitor International data reveals that the absence of top fashion brands and not at all a ‘conducive’ website while browsing for clothes and a fragmented market full of plucky competitors has put Amazon behind in Europe.
It is being said that other fashion-specific e-commerce websites are designed to provide brands with more control over presentation, and thus have a sleeker appearance that is attractive to European shoppers.
The retailer’s struggle in Europe has come at a time when it reported a 43 per cent increase in its net sales in the first quarter of this fiscal. The e-retailer is yet to announce its financial details on the European market. Last year, in Europe, its international business sales were US $ 54.3 billion, which was up 23 per cent y-o-y, with an operating loss of US $ 3.06 billion.
However, Amazon has now started equipping itself with means to woo European customers by taking several measures such as the launch of three of its own clothing brands and has also started encouraging US merchants to ship abroad.
Inditex-owned Zara, Boohoo.com and Berlin-based Zalando SE are counted among the major e-retailers in Europe. People prefer these retailers over Amazon when it comes to buying clothes, the report highlighted.
It seems Amazon’s extensive efforts in order to enhance its reach and serve better its customers have not come out well in Europe.
On the other hand, the retailer is doing good in India where it witnessed an 80 per cent increase in its seller base to 2.7 lakh and the majority (50 per cent) of the merchants are from Tier II cities and beyond in 2017.
