Hugely popular online with shoppers from diverse countries and of diverse ages, Amazon is increasing its domination on the UK market. That is not surprising, given the diversity of items on sale, and the convenience for online shoppers. More and more people like shopping online and become repeat shoppers. Many of them shop on Amazon.
Until recently, the UK revenues for Amazon were modest, but the situation is changing dynamically.
The figures are eloquent
Let us start with the revenues the UK Amazon accomplished in 2015: $9.0 billion, then, in 2016, the revenues grew by $0.5 billion and reached $9.5 billion; in 2017, it rose to $11.4 billion. Compare the numbers to the 2010 revenues of $3.9, and the difference is eloquent enough.
Now let us quote the 2017 revenues in British pounds: they are £8.8 billion. These are figures released by the GlobalData market researcher. One more fact is sufficiently telling: in 2017 Amazon’s growth occurred at the fastest rate since 2011. The growth rate was an impressive 25%.
The transfer of sales share from physical retailers to the online behemoth is inevitable
Online trading is spreading, and increasingly more people realise the convenience and time saving of shopping online on Amazon. Word of mouth advertising helps to spread information on indispensable everyday items available on the online store, plus appliances and other commodities used by households and individuals. The impact Amazon has on purchasing habits is fast and significant, as GlobalData underscore.
Amazon’s UK market is relatively small, but it is increasingly expanding
As already pointed out above, the UK market share is small, it accounts for under 7% of Amazon’s total sales. However, as its importance is growing, and also on account of the 2016 devaluation of the pound, it is bound to expand.
Not only is Amazon taking over shares of the online market for the UK, it is also acting as a market driver there. The latest data suggest Amazon’s impact on the UK online shopping grounds is going to expand faster than anticipated.
The expansion is boosted by overseas orders
The increasing number of overseas orders placed on Amazon’s UK platform contributes to the rising in UK sales. The 2016 pound devaluation has been an important factor for that: prices have become more appealing to shoppers from overseas.
Amazon is investing in British infrastructure
Preparing for a larger and larger share of the market, Amazon is investing in its infrastructure in the UK. Since 2010, the amounts invested have totalled in excess of £6.4 billion. The investments comprise a new headquarters in Shoreditch, London, a development centre in Cambridge, plus new fulfilment centres in Daventry, Warrington, Doncaster, and Tilbury. The enhancement of its infrastructure means more job positions: over 5,000.
Amazon is a major factor impacting the UK market
Expanding fast, Amazon is becoming a dominant store on the online market for the UK and overseas based shoppers alike. With its investments in the infrastructure in the UK, the behemoth is confirming its goals of expanding further in the country’s online shopping grounds.