Amazon expands warehouse space in Germany

Recently, Amazon announced that it will expand its warehouse scale in Germany and open eight more logistics and distribution centers by mid-2022.

Currently, Amazon has 17 large logistics centers and more than 30 logistics sites in Germany, with 19,000 warehouse employees. It is expected that the number of employees will increase to 28,000 by the end of 2021.

New logistics centers are planned in Mecklenburg -Vorpommern, Bavaria and Lower Saxony, while distribution centers will be built in Neu-Ulm, Friedrichsdorf, Weiterstadt and Wenden. In addition, there will be a new sorting center in Erding near Munich.

In the face of the current labor shortage, Amazon also emphasized that it would provide a basic salary of 12 euros per hour, a measure that has been effective for most employees since July.

Germany is currently the largest market in the European Union, with a population of nearly 84 million, and is also the best performing country in Europe in terms of GDP, which means that the income level of the entire population is high, and therefore the purchasing power is also high. According to Statista, before the pandemic, Germans spent 76 billion euros on clothing and footwear in 2019.

During the epidemic, the scale of e-commerce has grown tremendously. According to recent data, Germany's e-commerce sales have increased by 15 billion euros in the past year, almost tripling the growth rate. Among them, Amazon accounted for approximately 11.4 billion euros, making it the most popular e-commerce platform among German consumers.

The survey on German shopping behavior also showed that in terms of the frequency of online shopping on Amazon , 92% of respondents said that they had shopped on Amazon at least once in 2020, and almost half (46%) had significantly increased their online shopping frequency.

As for the reasons for choosing Amazon, 41% of consumers were attracted by the low prices online, 37% said Amazon delivered goods faster, and 36% thought that the Amazon platform page was simpler and easier to operate. Skin care products, cosmetics and toiletries are more popular in the local area.

As an important e-commerce market in Europe, Germany's potential cannot be underestimated, and Amazon is the most popular platform there. Relevant sellers can pay more attention to local market trends.

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