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It is learned that according to foreign media reports, Amazon plans to launch online markets in five new countries between 2022 and 2023. According to internal documents obtained by insider, the five new sites are Nigeria, South Africa, Chile , Colombia and Belgium .
According to the news, the Belgian site will be launched first in September this year , with the project name " Project Red Devil "; Amazon's South African and Colombian sites will be launched in February 2023, and Amazon's Nigerian and Chilean sites will also be launched in April 2023. Among them, the Nigerian and South African sites share the project code name, named " Project Fela ", and the Chilean and Colombian sites are named " Project Salsa ".
What’s different from before is that the five newly launched sites are mostly in economically underdeveloped developing countries that have rarely attracted capital in the past. So, what is the reason for Amazon’s move?
Five new sites , four in less developed areas Although the market transaction volume of these countries is far less than that of traditional European and American markets, and can only be regarded as the tip of the iceberg worldwide, in the past two years, with the increasingly severe global epidemic and the gradual popularization of local Internet , the people of these third world countries have also eagerly joined the trend of online shopping, and local e-commerce has flourished. Nigeria is the largest economy in Africa , accounting for more than three-quarters of the total GDP of the Economic Community of West African States. With a population of 195 million, accounting for 16% of the total population of Africa, it is the most populous country in Africa . At the same time, Nigeria is the country with the largest number of shoppers and the largest online shopping income in Africa, accounting for 40% of e-commerce in Africa, and nearly half of African e-commerce companies are headquartered in Nigeria. The growing population and economic strength guarantee the purchasing power and consumption capacity of residents. ▲ The picture comes from the Internet
South Africa South Africa became the most developed country in Africa in the 1980s. Although its economic performance has been declining since the 21st century, in the barren African land, if you want to invest in cross-border e-commerce, you still have to go to South Africa. According to reports, Amazon is planning to set up its entire African operations headquarters in South Africa. Chile Chile's per capita GDP is close to US$15,000, which is among the top in Latin America, and its Internet penetration rate is as high as 82% . According to CCS research manager George Lever, Chile is one of the fastest growing countries in e-commerce, with year-on-year growth reaching 55% in 2020. It declined slightly in 2021, but still grew by 23% to US$ 7 billion , making it the 31st largest e-commerce market in the world. Colombia is a newly developed cross-border market in Latin America with huge potential. In 2020, the volume of e-commerce in Colombia was about 5 billion US dollars; in the first quarter of 2021, Colombia's e-commerce grew by 46% year-on-year . It is conservatively estimated that by 2022, this figure will increase to 8 billion . From the above data, we can see that the local e-commerce market is thriving. Not only that, there are many other reasons that also affect Amazon's layout changes. Amazon is betting on multiple fronts as market trends drive demand Since the beginning of this year , due to cost increases and other reasons, Amazon has begun to slow down its business expansion and cut some of its retail businesses in the United States. The company as a whole is in a state of strategic contraction , which is closely related to Amazon's home market in Europe and the United States: 1. Consumption in developed regions is declining, and it is difficult for the European and American markets to grow In 2022, the United States fell into hyperinflation not seen in decades due to excessive money issuance during the epidemic. Although the Federal Reserve has continued to raise interest rates to curb hyperinflation, the damage it has caused to the U.S. economy is irreversible, and the U.S. consumer confidence index has fallen to a historic low . On Amazon, many sellers in the United States have seen a cliff-like drop in order volume this year, with some categories even seeing only one-tenth of their peak levels ! ▲ The picture comes from Zhiwubuyan The situation at European sites is not optimistic either. The US economy has always been closely linked to Europe. According to data from the British Retail Consortium (BRC), UK retail sales fell 1.1% year-on-year in May, the biggest drop since 2021. 2. Developing countries have great potential and Southeast Asia is full of vitality Southeast Asia can be said to be the most promising e-commerce market in Asia after China and India. Southeast Asia has a population of more than 600 million, of which 340 million are Internet users, and the e-commerce market is as high as US$ 21.8 billion . Southeast Asia itself has a large demographic dividend, high investment in the digital economy, and the widespread use of mobile devices, all of which have built a huge market volume foundation for cross-border e-commerce in Southeast Asia. Compared with the ups and downs in Europe and the United States, the e-commerce environment in Southeast Asia has been growing steadily since last year. Platforms such as Shopee and Lazada have shined in the local market. The two platforms occupy more than half of the e-commerce market in Southeast Asia, with an average monthly visit volume of nearly 200 million. In 2021, Shopee's GAAP revenue was US$5.1 billion, a year-on-year increase of 136.4% , of which at least 80% came from the Southeast Asian market. Amazon 's market share in Southeast Asia ranks only tenth, and it will be difficult for it to compete with local e-commerce platforms that have been deeply rooted in the region for a long time. In the past, the high revenue from European and American sites made Amazon not seriously consider investing in these third world markets. Now that the situation has reversed, Amazon will have to re-examine the company's business allocation . In conclusion : Sellers on European and American sites have been in a state of fierce competition for a long time in the past. Now that Amazon has decided to open up new blue ocean markets, these underdeveloped regions may be good opportunities for sellers.
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