12/02/2024
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Is European eCommerce dominated by foreign platforms? eCommerce News No. 85

European online stores are facing the challenge of increasing competition from global eCommerce giants. Amazon is launching a new platform to take on Chinese titans like AliExpress and Temu. Meanwhile, Perplexity is redefining online shopping in the world of language models, offering users a completely new shopping experience.

What’s happening in the eCommerce industry? Find out in the 85th edition of Advox Press Release - packed with the latest news and inspiration from the world of online retail!

¾ of all eCommerce traffic in Europe is generated by companies outside the continent

Sales platforms from outside Europe dominate the continent’s market. According to the Internet Retailing report by RetailX, 51% of the 1,000 largest online retailers in Europe are headquartered outside the continent. Moreover, their share of online traffic is even more significant, reaching a staggering 74%.

Among these platforms, well-known American marketplaces like eBay and Amazon hold a prominent position. However, Chinese marketplaces such as Temu, AliExpress, and Shein are rapidly catching up in popularity.

Does this mean there’s no room for local players in the European market? On the contrary - RetailX reports that local eCommerce platforms are growing just as dynamically as their international competitors. This growth spans both the B2C (business-to-consumer) and B2B (business-to-business) sectors, with over 250 European platforms already in operation.

The report highlights that a key strength of European platforms lies in their ability to better meet customer expectations and their high level of innovation. Key advantages of European eCommerce platforms include:

  • Click & Collect delivery options - European consumers increasingly favor picking up their orders in physical stores, which eliminates delivery costs and speeds up the shopping process. According to RetailX, 54% of the top 1,000 online retailers offer this option.

  • Ease of product comparison - European platforms serve as intuitive shopping search engines, allowing customers to compare offers and find the best deals.

  • Advanced search capabilities - by leveraging modern technologies like artificial intelligence and personalization, European platforms deliver highly tailored search results to meet customer needs.

Despite the global dominance of companies from the US and China, local businesses still have opportunities to grow their market share. By focusing on innovation, building strong customer relationships, and investing in cutting-edge technological solutions, European entrepreneurs can continue to compete successfully in the eCommerce landscape.

Amazon Haul - American giant takes on Chinese marketplaces

Amazon has launched a sister sales platform called Amazon Haul, focusing on offering products at exceptionally low prices. This new initiative is a direct response to the dominance of Chinese eCommerce platforms such as Temu, AliExpress, and Shein, which have virtually monopolized this market segment.

Amazon Haul is designed specifically for mobile users - accessible only via a browser or a dedicated app. Its standout feature is its incredibly attractive pricing - all products, regardless of category, cost less than $20. The platform’s creators assure that every item will come with a guarantee, similar to those on the main Amazon platform. However, there are more differences than similarities between the two platforms.

Firstly, Amazon’s signature minimalist design has been replaced with a style reminiscent of its Chinese counterparts - vivid graphics, flashing promotions, and dynamic elements dominate the interface, designed to grab the attention of bargain-hunting customers. Secondly, Amazon Haul offers a longer delivery timeframe compared to the standard Amazon platform - orders will be fulfilled within two weeks, a notable departure from Amazon’s renowned delivery speed.

The Haul platform signals Amazon’s intent to strengthen its position in the budget-friendly product segment. It also addresses growing consumer demand for low-priced goods, which could attract new customer groups to the company. Although the platform is currently available only in the United States, analysts predict it may soon expand to European markets, including Poland. If that happens, it could significantly reshape the competitive landscape of the eCommerce market.

“Shop like a Pro”: AI-Powered Shopping on the Perplexity Platform

“A first-of-its-kind AI-driven shopping experience” - this is how the language model provider Perplexity is promoting its new feature.

Perplexity, like ChatGPT or Google’s Gemini, is an AI-powered search engine that has traditionally helped users find answers to their questions. Now, it has expanded its capabilities with an innovative shopping feature. Shop like a Pro stands out from competing solutions by offering comprehensive support throughout the online shopping process. But how does this tool work?

Shop like a Pro allows users not only to search for and compare products but also to make purchases all in one place. Offers are displayed as clear product cards that include images, prices, reviews, and key features. This format enables users to quickly compare options and make informed purchasing decisions.

A major convenience for Perplexity Pro users in the U.S. is the ability to complete purchases directly within the app or on the Perplexity website. By saving payment and shipping information, users can place orders with just one click—without needing to navigate to the retailer's website.

But that’s not all. With its visual search capability, users can snap photos of products to quickly retrieve information and find them for sale, even without knowing the product name or detailed description.

Thanks to integration with eCommerce platforms like Shopify, Perplexity provides access to a wide range of products from sellers around the world who ship to the U.S. The company also plans to expand this functionality to other markets, potentially redefining the consumer experience in the AI era.

Want to learn more about these topics? Check out the sources!

The dominance of foreign eCommerce platforms in Europe
Amazon Haul – Amazon's new project
“Shop like a Pro” by Perplexity

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