Table of Contents
- 1 The fear continues to grow
- 2 Italy is Amazon stronghold, Brexit is being felt in the UK
- 3 What happens in the world
- 4 To what extent can Amazon’s early establishment and lack of strong local competition explain its continued success in the Italian e-commerce market, and what implications might this have for the development of a competitive domestic e-commerce ecosystem in Italy?
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We are in the middle of Black Friday, a great opportunity (paying close attention to what and where you buy) to complete some good online purchases. And the “2024 Marketplace Map” developed by Yocabè, a digital platform that helps brands sell online, reaching over 300 million customers, is dedicated to e-commerce and understanding its dynamics on a global scale. Well, among the many indicators that emerge from this study, one relating to Italy stands out, the only Central European market to record growth in Amazon’s sales, which instead is declining almost everywhere in the Old Continent due to competition from e-commerce. local shops (totally absent in our country), namely companies such as El Corte Inglés in Spain, Otto and AboutYou in Germany, Leroy Merlin and Decathlon in France, Argos in the UK, Bol in the Netherlands and Blocket in the Scandinavian ones.
The fear continues to grow
Generally speaking, B2C e-commerce in Europe continues to grow albeit unevenly, reaching 887 billion euros this year, but with an uneven increase between the various regions and with operators losing appeal such as eBay (down a almost everywhere) and others like Vinted who continue to run hand in hand with the growing attention to sustainability and circular economy models by many companies. However, second-hand goods are less attractive to e-shoppers than fast fashion goods and this is confirmed by the results of Temu (which rightfully enters the top 5 of many countries) and Shein. Finally, in the background, one of the most relevant trends is linked to artificial intelligence and augmented reality, technologies that are revolutionizing the retail sector, significantly impacting supply chain management, the purchasing experience (increasing the level of personalisation) and on customer support activities.
Italy is Amazon stronghold, Brexit is being felt in the UK
That the North American e-commerce giant has a “special” relationship with our country is not last-minute news, precisely because of the impact that the marketplace designed by Jeff Bezos has been able to give to the development of e-commerce in Italy in the early 2000s. And this forward race has not stopped: Amazon is growing by 6% compared to 2023, reaching an online transaction value of 58.8 billion euros. Among the numbers that characterize its supremacy among the large virtual shops we highlight the most interesting: 47% of site users between 16 and 64 years of age completed purchases every week, fashion leads the sales ranking with over 15 billion dollars and an increase of approximately 26% (electronics follows with 10.7 billion and a growth of 11%) and 188 million average monthly visits in 2024, with a leap forward of 18%. Behind Amazon, in terms of number of visits, are clearly behind names well known to online shopping lovers, namely eBay (with 39 million visits), Temu and Zalando. Looking beyond our borders, among the countries of northern and central Europe, the case of the United Kingdom is emblematic, where the decline in visits to marketplaces is generalized and massive. Amazon and eBay are reporting drops in customer engagement in the order of 50% and the other marketplaces in the top 5, namely Argos, Etsy and Temu, are also down.
The fault is probably attributable, as Vito Perrone, CEO and co-founder of Yocabè explains, “to Brexit, which has accentuated the difficulties in managing customs operations and led to an increase in shipping costs both from Europe to the United Kingdom and vice versa , reducing the number of products available on the marketplaces and inducing several international operators to give up working in this market”.
What happens in the world
Having said that about Europe, and explained how the southern and eastern areas of the continent record double-digit growth rates reflecting the post-pandemic evolution of consumer behaviour, what are the behaviors of the other regions of the world? The answer can only start from the United States, the home par excellence of e-commerce: the Stars and Stripes confirms itself as the third online market in the world, after China and India (the data are from Statista) and rewards in order, in terms of product categories, fashion, electronics and drinks (which exceed 90 billion dollars by virtue of a year-on-year increase of almost 30%). Very interesting, according to the Yocabè experts, is what is happening in Russia, where Ozon has overtaken Wildberries in the rankings and where, above all, the marketplace dedicated to Farfetch fashion has recorded a real boom in monthly visits.
To what extent can Amazon’s early establishment and lack of strong local competition explain its continued success in the Italian e-commerce market, and what implications might this have for the development of a competitive domestic e-commerce ecosystem in Italy?
## Yocabè’s “2024 Marketplace Map”: A Deep Dive into E-commerce Trends
This article, based on Yocabè’s “2024 Marketplace Map,” offers a compelling snapshot of the global e-commerce landscape, highlighting key trends, regional disparities, and the evolving competitive dynamics.
**Italy: An Amazon Bastion in a Turbulent European Market**
* While Amazon sales are declining across much of Europe due to stiff competition from local e-commerce players, Italy stands out as an exception.
* **”That the North American e-commerce giant has a ‘special’ relationship with our country is not last-minute news, precisely because of the impact that the marketplace designed by Jeff Bezos has been able to give to the development of e-commerce in Italy in the early 2000s.”** – *Vito Perrone, CEO and co-founder of Yocabè*
* Amazon’s impressive growth in Italy (6% compared to 2023) is attributed to its established presence and the absence of strong local competitors.
**The Brexit Fallout: A UK E-commerce Downturn**
* The United Kingdom presents a stark contrast, experiencing a significant decline in marketplace visits.
* **“to Brexit, which has accentuated the difficulties in managing customs operations and led to an increase in shipping costs both from Europe to the United Kingdom and vice versa , reducing the number of products available on the marketplaces and inducing several international operators to give up working in this market…”** * – Vito Perrone, CEO and co-founder of Yocabè*
* Brexit-induced complexities have impacted shipping costs and product availability, leading to reduced marketplace engagement.
**Global Trends:**
* Fashion and Electronics Drive Sales: These categories remain key drivers of online sales globally, with fashion dominating Italy.
* Temu and Shein on the Rise: Fast fashion platforms are gaining traction and outperforming second-hand marketplaces like Vinted.
* AI and Augmented Reality: These technologies are transforming the retail experience, improving supply chain management, personalization, and customer service.
**Discussion Elements:**
* **Amazon’s dominance in Italy and its potential long-term implications.**
* **The impact of Brexit on the UK e-commerce market and whether this trend is reversible.**
* **The rise of fast fashion platforms versus sustainable shopping alternatives.**
* **How AI and augmented reality will shape the future of e-commerce.**
This article provides valuable insights into the constantly evolving e-commerce landscape. Deeper analysis by experts in specific market segments would further illuminate these complex dynamics.
