The news: While North America remains the engine of Amazon’s business, the retailer is taking several steps to strengthen its international operations.
Amazon is investing more than €10 billion ($11.28 billion) to expand and upgrade its fulfillment network across Europe. The investment includes greater use of robotics such as Vulcan, its first robot with a sense of touch, and an expansion of its STARK robotic system—which works alongside employees to pick full totes from conveyors and place them on carts. Amazon plans to deploy STARK to 15 sites across Europe by next year and hire 25,000 employees for its fulfillment operations over the coming years.
Amazon is also accelerating delivery speeds. Its ultrafast Amazon Now service, which delivers groceries and essentials in 30 minutes or less, is already live in parts of London and is set to expand to Manchester and Birmingham. The service relies on micro-fulfillment centers located near dense residential areas to shorten delivery distances and speed order fulfillment.
The retailer is expanding its same-day delivery in Europe. It plans to add Sub Same-Day sites in more than 25 locations this year, including Coventry in the UK and Nuremberg in Germany. These facilities combine storage, packing, and last-mile delivery in a single location, allowing customers who place orders as late as 5pm to receive them by 10pm the same day.
Amazon is further strengthening its grocery offering. It is adding perishables to same-day delivery in parts of London, a move that mirrors its US strategy that has helped drive higher order frequency and larger baskets.
Beyond Europe, Amazon is expanding its Prime ecosystem. It recently launched Prime in South Africa—its 27th market—offering benefits like same-day delivery, Prime Video, gaming, and access to Prime Day for 59 South African rand ($3.62) a month, or 399 rand ($24.50) a year.
Implications for Amazon and other retailers: While international sales accounted for just 22.6% of Amazon’s total sales last year, up modestly from 22.4% the previous year, the company is investing heavily in the fundamentals needed to drive growth. Faster delivery, expanded grocery offerings, and a broader Prime ecosystem are all designed to make Amazon more convenient, which could increase customer engagement over time.
But scaling internationally isn’t just about replicating the US playbook. Success depends on adapting to local market dynamics. In India, for example, Amazon remains a distant second to Walmart-owned Flipkart and faces growing competition from local players like Reliance Retail, Blinkit, and Swiggy. That’s due in part to its failure to understand the potential of some partnership opportunities and its slow adoption of quick commerce.
For international growth to meaningfully accelerate, Amazon will need to pair its operational strengths with a deeper understanding of local consumers by tailoring its model to each market rather than trying to export a one-size-fits-all approach.
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