Ecommerce Briefs from Europe: Development, Acquisitions, Amazon, Supply


“Ecommerce Briefs” is my occasional sequence on information and developments that affect on-line retailers. On this installment, I’ll concentrate on happenings in Europe.

Development in European Ecommerce

Ecommerce in Europe has grown dramatically because the onset of the pandemic. Based on the “2021 European E-commerce Report” (PDF) from Amsterdam College of Utilized Sciences, lockdowns contributed to the elevated use of digital applied sciences, notably on-line shopping for in international locations that beforehand had low ranges of ecommerce.

Aggregator Seems to be to Develop

Based in March of this yr, ecommerce aggregator Opontia is pursuing acquisitions of small ecommerce firms in Japanese and Central Europe, particularly Poland and Turkey. Japanese Europe has the bottom penetration of ecommerce customers in Europe and presents a development alternative, particularly with Covid-19 limiting in-store buying.

In contrast to different aggregators that focus solely on Amazon sellers, Opontia prefers retailers that promote throughout a number of channels — marketplaces, branded web sites, and extra. Japanese Europe has the bottom penetration of ecommerce customers in Europe and presents a development alternative, particularly with Covid-19 limiting in-store buying.

Primarily based in Dubai, with satellite tv for pc workplaces in Warsaw and Istanbul, Opontia additionally intends to purchase ecommerce companies in Africa and the Center East. The corporate not too long ago accomplished a $42 million Collection A spherical of funding and goals to amass 20 manufacturers within the subsequent six months.

Italian Regulator Fines Amazon

The Italian Competitors Authority (AGCM), a quasi-governmental regulator, final week fined Amazon a report €1.3 billion. Based on AGCM, Amazon abused its market dominance, harming opponents. AGCM alleges Amazon sellers that deal with their very own achievement don’t obtain sure advantages, akin to elevated visibility on the positioning and entry to the Prime label.

The regulator ordered Amazon to develop the advantages and visibility on its Italian market loved by Success by Amazon prospects to all third-party sellers that meet sure requirements. Amazon is interesting the choice. In November, AGCM fined Amazon €68.7 million for violating E.U. legal guidelines by means of restrictions that penalized sellers of Apple merchandise.

Supply Begin-ups

Europe has seen a increase in same-day (and same-hour) grocery supply.

  • Frankfurt-based supply firm Grovy, based in 2020, not too long ago closed a €3 million financing spherical to develop into Central and Japanese Europe, with workplaces already working in Prague and Bucharest. Grovy claims a 15-minute supply timeframe and fosters sustainability — utilizing solely bikes and electrical autos for deliveries — and gives reductions on soon-to-expire produce and perishables. It additionally solely hires full-time staff — 250 of them — in contrast to different supply companies that depend on gig employees.
  • Prague-based grocery supply agency Rohlik Group not too long ago raised €100 million in Collection C funding, bringing the corporate’s complete valuation to $1 billion — unicorn standing. Rohlik’s income exceeded €300 million in 2020. The corporate operates in Hungary, Austria, and the Czech Republic, serving 750,000 prospects, with plans to develop into Germany. Based in 2014, Rohlik provides deliveries inside two hours.
  • In October, Gorillas, a Berlin-based grocery supply unicorn, raised about €860 million in Collection C funding. Since its founding in June 2020, Gorillas has grown to over 180 warehouses in eight European markets plus the U.S., delivering over 4.5 million orders previously six months. The corporate has roughly 11,000 staff.
  • The success of grocery supply in Europe has caught the eye of Amazon. Through the previous yr, Amazon has operated an Instacart-like supply enterprise within the U.Okay. Prime subscribers can order groceries from two main U.Okay. shops — Morrisons and Co-op — with same-day supply fulfilled by Amazon Flex drivers.

On-line publication The Info reported that Amazon plans to develop on-line grocery ordering and supply all through Europe and the U.S. in 2022.


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