Amazon in Switzerland: Opportunity or Threat for the National Market?

In 2024, Amazon's expansion into Switzerland marks a turning point for the local market. With concrete plans to increase its presence in Europe, Amazon is preparing to enter the Swiss market, promising to bring significant transformations to the retail sector.

Opportunities and Challenges for the Swiss Market

• Greater Variety of Products at Competitive Prices: Amazon's entry promises to offer Swiss consumers a wide range of products at more accessible prices.
• Support for Local Businesses: Swiss companies can benefit from Amazon's platform to expand their business, filling infrastructure gaps in the online sector.
• Competitive Challenges: Amazon presents itself as a threat to local retailers, with its ability to offer a wide variety of products at competitive prices.

Amazon's Expansion Strategy in Europe Amazon

The online sales giant is planning to significantly increase the number of logistics platforms in Europe, of which Switzerland could be a key point. This expansion is part of a broader strategy that includes the use of automation and artificial intelligence to increase efficiency and reduce delivery distances.

Innovation and Investments

• Amazon Web Services and Digital Advertising: Amazon continues to invest in key areas such as AWS and digital advertising, indicating significant growth prospects for 2024.
• Revenue Diversification: Amazon is diversifying its revenue sources, reducing its reliance on retail sales and strengthening its position in the market.

Collaboration with Swiss Post

A collaboration agreement between Amazon and the Swiss Post will allow customs clearance to be carried out in record time, guaranteeing rapid delivery of Amazon products in Switzerland (source: The Daily Geek).

Amazon's arrival in Switzerland represents a crucial moment for the country's retail trade. As local businesses prepare to face more intense competition, significant opportunities are also emerging to expand their reach and innovate in their business models. The future of retail in Switzerland appears to be one of innovation and transformation, with Amazon playing a key role in this new scenario.

Amazon is already expanding its proposal for Switzerland and is doing so temporarily through the marketplaces of neighboring nations (Amazon.it for example). Have you already tried to buy, for example, a smartphone from Switzerland on Amazon.it and request delivery in Switzerland? You can often find advantageous prices compared to Swiss competitors, especially on electronics for the moment, automatic customs clearance with Italian VAT discount and application of Swiss VAT. The result? Much lower prices due to this double deduction (Amazon discount, 22% Italian VAT deduction and 8.1% Swiss VAT application), obviously fast delivery in full Amazon style. In this way it is already increasing its Swiss customer base. It's easy to imagine the next development steps of the giant founded by Jeff Bezos.

Cit. Dario Manduca

Strategic hypotheses for Amazon's expansion in Switzerland

1. Immediate opening of a warehouse

• Internal Logistics: the opening of a warehouse in Switzerland would mean that Amazon would be able to manage all logistics internally, from receiving to shipping the products. This could lead to faster delivery times and greater efficiency in customer service.
• Local Economic Impact: Amazon's physical presence through warehouses would create jobs and stimulate the local economy. However, this could also lead to increased competitive pressures for local retailers.

2. Make more products available online

• Gradual Increase: If Amazon chose to progressively increase the range of products available for online purchase from Switzerland, this could represent a less invasive but equally effective strategy. This approach would allow Amazon to evaluate the market response and adapt accordingly.
• Consumer Relations: Increasing product availability would allow Amazon to build a loyal customer base in Switzerland before investing in physical infrastructure.

Conclusion: the impact on Swiss online giants

Regardless of the strategy chosen, Amazon has clearly set its sights on Switzerland. This translates into significant competition with Swiss online commerce giants such as Galaxus and Digitec. Amazon's presence in the Swiss market is likely to be a catalyst for innovation and competitiveness, prompting local retailers to review their strategies to maintain their market share.

In a rapidly changing business world, we emphasize the importance of developing your business both online and offline.
Significant events such as Amazon's entry into Switzerland, or unexpected situations such as the COVID-19 period, should not only be seen as challenges, but as opportunities to grow, differentiate and strengthen your business.
Using these events to your advantage, rather than experiencing them as a threat, can turn any major change into an opportunity in the business world.
Now is the time to act.

Don't wait for circumstances to change further. The right time to invest and develop your online and offline business is today. Get in touch with us at Professione Business to start your Online and Offline Development immediately. We are ready to support you in creating tailor-made strategies that allow you to navigate and thrive in this dynamic business landscape.

Contact us now and start your path to success!