Amazon plans to expand its business efforts for selling office supplies internationally — including in Europe — after the COVID-19 pandemic led to more companies shopping online and looking for bulk discounts.
Amazon Business’s gross sales in Europe grew at a compound annual rate of 25% from 2020 to 2022, Amazon Business Vice President Alexandre Gagnon said in an interview with Reuters on April 20.
The company is investing in logistics to make it easier for companies in Europe to buy supplies such as office chairs, desks, paper and printer ink in bulk, according to Gagnon, with “a view to winning contracts” to supply them. He added that Amazon gives companies discounts for bulk orders.
The business offers potentially higher margins for Amazon than its main consumer business, as making a smaller number of bulk deliveries is cheaper per unit than getting millions of small parcels to individuals’ doorsteps.
“Because businesses buy in larger quantities, the fulfillment economics are more advantageous,” Gagnon said.
Amazon Business has expanded across Europe over the past decade, first launching in Germany in 2016, Great Britain in 2017, and Italy, Spain and France in 2018.
In his 2022 letter to shareholders released earlier this month, Amazon CEO Andy Jassy said that Amazon Business “today drives roughly $35 billion in annualized gross sales.” Based on the announced numbers, Amazon Business over the past two years has grown its Gross Merchandise Value (GMV) by 40% and its global customer base by 20%, up from five million customers in 2022.
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