Amazon grows 8.7% in Germany, 12.7% in UK
In 2024, Amazon reported revenues of €39.6 billion in Germany and €36.7 billion in the UK, marking growth rates of 8.7% and 12.7% respectively. This is a major achievement, especially considering that overall e-commerce growth was just 4.8% in the UK and 1.1% in Germany. Amazon’s ability to grow significantly faster than the industry average proves its continued dominance.This is despite external pressure with newer low price marketplaces like Temu and Shein that have put pressure on.
Despite these competitive pressures, Amazon continues to thrive due to several key factors:
Amazon continues to offer same or next day delivery which suits the modern shopper with expectations of fast service.
Amazon has a great offering of products that continues to expand. Amazon is still recognised as a place for consumers to get great deals on large quantities of product.
Amazon’s ability to track product prices off its platform and match has made it consistently competitive. Consumers know that Amazon is the one-stop shop for the best priced products.
What are some high growth opportunities for Amazon?
Although they haven’t fully cracked the opportunity, grocery is still a massive opportunity for Amazon and they keep making strides with various high profile hires to make this work. When they formulate the winning recipe, they could be unstoppable in the space and further drive growth.
Advertising is an established piece of the Amazon puzzle now representing 8.8% of total revenue and expected to grow through further developing their retail media offering to other retailers, the continued expansion of Prime Video and potential to partner with other providers, just to name a few.
AWS continues to be a key profit driver, with AI-powered cloud services and custom AI chips (like Trainium 2, a competitor to Nvidia) driving new business adoption.
In conclusion, Amazon's impressive growth in Germany and the UK is the result of a clear strategy that has many facets focusing on product expansion, convenience, great pricing and innovation. These efforts have solidified its position as a leader in the European e-commerce landscape and with aggressive expansion into grocery, advertising, and AI, Amazon isn’t just growing—it’s redefining the e-commerce and digital landscape.
