Amazon plans to expand its office supplies business in Europe and globally, capitalizing on the pandemic-induced surge in online shopping and bulk purchases. In an interview, Alexandre Gagnon, vice president of Amazon Business, said the company’s gross sales in Europe grew at a compound annual rate of 25% from 2020 to 2022. The business launched in Germany in 2016, followed by Britain, Italy, Spain, and France. Gagnon declined to specify which countries Amazon will target next, but said the company is investing in logistics to make it easier for companies to purchase office chairs, desks, paper, and printer ink in bulk.
Gagnon stated that the Amazon Business model offers potentially higher margins than the main consumer business, due to cheaper fulfillment economics for bulk deliveries. Additionally, Amazon gives companies discounts for bulk orders. The company aims to win contracts to supply office supplies to companies, such as Siemens Gamesa, Centrica, and ABB, which are already Amazon Business clients.
During the pandemic lockdowns of 2020 and 2021, many companies and individuals had to invest in furniture for their home workspaces. As a result, there was a surge in demand for office supplies. Amazon Business’ growth in Europe suggests a market shift, as more businesses shifted to remote work and digital purchases.