Last week, Amazon officially announced that the Polish site was open for registration, which means that Amazon has taken another big step forward in its march into the European market. Many sellers are also eager to try out this "e-commerce dark horse market."

But Amazon's ambition to make money in Europe does not stop there. Judging from the various signals Amazon has released recently, Amazon's next step may be to target Ireland , the "darling of the world's famous companies", to expand its European market .

Amazon may open a site in Ireland

It is learned that Amazon’s first Irish logistics center will be established in Baldonnell, a suburb of Dublin, which indicates that Amazon may launch a dedicated Irish site.

According to foreign media reports, the new Baldonnell logistics center is similar to the logistics distribution centers opened by Amazon in the United States and elsewhere . The new Baldonnell logistics center will not only sort packages from the UK like the Rathcoole logistics center in Baldonnell, but will also list the inventory of products to be sold on the Baldonnell website.

Although the logistics center is only a small distribution center with no inventory and basically just coordinates packages shipped from abroad, it is of great significance to Amazon's Irish buyers .

Currently, most Amazon Ireland customers’ parcels are packed in the UK and then shipped to Ireland by An Post. The logistics and delivery process must follow a series of new regulations after Brexit, which means that Irish parcels are at risk of additional costs and delays.

It is learned that when the Baldonnell logistics center is put into operation, the packages of Irish buyers will bypass the UK and be picked up and packed at the Dublin logistics center in Ireland for the first time, and then delivered to Irish buyers faster. Most Amazon Irish buyers will experience same-day or next-day delivery services.

Although the opening of a new Amazon Ireland site is currently limited by UK facility services, it is only a matter of time before the much-anticipated Amazon Ireland site is established.

Amazon has recently paid special attention to the European market, with big moves one after another. This is partly due to the rapid growth of e-commerce in the context of the pandemic, and is also closely related to Brexit.

Brexit affects Irish orders

On January 1, 2021, the United Kingdom officially left the European Union, and the policy of Amazon paying the value-added tax on the UK site also came into effect. The increased tax burden and rising operating costs made many sellers miserable.

In this context, Irish buyers who previously placed orders on the UK site will bear more taxes, which increases the shopping costs for Irish buyers , but also brings opportunities to local retailers.

At the same time, due to Brexit, there will be a series of changes in the transportation of orders from the UK to Northern Ireland.

Many sellers have reported that the site’s order volume and profits have been much lower than before since Brexit, and this is partly why Amazon is now accelerating its pace to expand into the European market.

Since the British market is no longer prosperous, sellers may wish to give the new site a try. What is the prospect of the Irish e-commerce market?

What is the outlook for the Irish e-commerce market?

In fact, last year, Amazon had already set its sights on the big cake of Ireland and started strategic layout and business expansion early on.

Last July, Amazon announced that it had invested in a new 170,000 square foot area in Charlemont Square as its headquarters in Ireland, which is expected to open in 2022. At the same time, 1,000 new jobs will be created in the next two years, bringing the total number of employees to 5,000.

Ireland has been ranked first in the world for "attracting high-value project investment from all over the world" for six consecutive years, becoming a well-deserved darling of world-famous companies. What is its charm that attracts world-famous companies to compete for investment? Next, let's take a brief look at the e-commerce market in Ireland.

Ireland is a member of the European Union, with a population of nearly five million and a per capita GDP of $80,000 - ranking among the top five in the world , so its spending power is unquestionable.

The ultra-low corporate tax rate of 12.5%, the favorable business environment, the young and high-quality workforce, the convenient entrepreneurial environment and the complete investor protection system have attracted giant companies from all over the world to enter Ireland. Ireland's investment potential is self-evident.

In addition, Ireland has multiple advantages that deserve the attention of e-commerce companies and cross-border sellers.

1. Language attributes

Ireland's native language is English, and it borders the United Kingdom. As a result, many customs and cultural preferences are similar. The main battlefield of many cross-border e-commerce sellers is the United Kingdom, which is of great advantage for the subsequent development of business in the Irish market.

2. Economic level

Although Ireland has a population of only 5 million, its per capita consumption level is extremely high. Moreover, Ireland is still a member of the European Union and the Eurozone, and can enjoy the customs clearance policies of EU member states and the lowest tax rate in Europe.

3. Industrial structure

Ireland's pillar industries are finance-aircraft leasing/computers/pharmaceuticals, and there is no more labor force engaged in industrial manufacturing (such as clothing), so there is an crowding-out effect. Research company analysis shows that clothing and footwear are the most popular product categories in Irish e-commerce.

4. Development speed

A report released by IBISWorld shows that e-commerce sales in Ireland are expected to grow by 12.9% to €2.2 billion in 2019. The research company predicts that over the next five years, Irish e-commerce sales will grow at a compound annual growth rate of 11.2% to €3.8 billion.

It can be seen that Ireland is indeed a cross-border e-commerce market that cannot be underestimated, and Amazon's presence in the European market will become larger and larger in the future. In the battle to chase the euro, Amazon has a promising future.

Are sellers interested in the Irish site? Feel free to leave a comment in the comment section.