Since Amazon began opening distribution centers and hiring employees in Poland, it has become quite popular. However, few Poles actually know what this company does or have used its services. What is Amazon? What significance does it have in the domestic and global markets? How does it operate? We explain!
Amazon – the largest online store in the world
Amazon is now a global brand and the largest online retailer in the world. Its origins date back to 1994. Back then, Jeff Bezos founded one of the first online bookstores, despite the fact that no one expected online shopping to become so popular in the near future. Books are still sold on Amazon today and constitute a significant portion of its offerings, but today, the range is much broader. At the same time, the company has grown into a massive corporation, employing nearly 800 people worldwide, over half a million of whom are in the United States alone. In this respect, it is surpassed only by another massive American corporation, Walmart (2 million employees worldwide, 1,5 million of whom are in the US). Interestingly, in 2019, Amazon added 150 employees – more than Apple.
Over the past quarter-century, Amazon has transformed almost beyond recognition – from an online bookstore to a massive multi-sector store where you can find almost any product. In addition to selling its own products, the site also shares its inventory with other sellers. The Amazon Marketplace platform allows anyone who partners with it to list their products and reach millions of buyers worldwide. The service is particularly active in the US, where it is unrivaled in both transaction volume and product diversity. However, it is also increasingly expanding its presence in Europe, creating separate versions of the site dedicated to customers in specific regions (we're still waiting for Amazon.pl!). It's also easily conquering European markets – Amazon.de recently surpassed Google as the most popular product search tool in Germany.
Amazon is modern technologies and huge opportunities
Amazon is a retailer, but also one of the most important players in the world of cloud computing – right next to Google and Microsoft . Its most profitable part is Amazon Web Services, an online platform offering cloud services (including hosting). This is important, among other things, because by making money in this area, it can lower product prices in its own store. This is what makes it so competitive. It's quite common for goods on Amazon to be available at prices below market prices. This makes it relatively easy to eliminate the competition. It's thanks to such tactics, among other things, that Amazon is so powerful today, and especially in the American market, it remains unrivaled.
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The store has created dozens of its own brands, which are available there and are popular due to their affordable prices and excellent quality. It has also created numerous unique services that have inspired others. An example is Amazon Prime, a subscription that entitles you to various services, such as Prime Music, a music streaming service similar to Spotify or Tidal, and Prime Reading, which provides access to free e-books. Furthermore, Prime subscribers have access to Amazon's own video service, which is increasingly competing with Netflix and HBO GO, offering exclusive productions and original films, series, and programs. They also benefit from free 24-hour delivery, special promotions, and other privileges.
A revolution in the e-book market
One of Amazon's groundbreaking inventions was the Kindle e-book reader, which not only contributed to the development of this market but actually revolutionized it. Previously, electronic editions of books were not very popular because reading them was simply not convenient. The portable e-book reader was one of the first to use E Ink technology, also known as electronic paper. This makes reading less tiring for the eyes. The screen is designed to mimic the look of a book page. It doesn't reflect light, making it comfortable to use in any conditions. It also consumes very little power, so a single charge can last several weeks.
The first Kindle, released in 2007, was awkward, unattractive, and expensive (priced at $399), but it still sold out very quickly. Subsequent generations experimented with various features designed to make the device easier to use. Design improvements were also made. Subsequent Kindles were increasingly slimmer, lighter, and more attractive, while also boasting larger storage capacities.
- In the fourth generation (2011), a model with an additional screen (Kindle Touch) appeared for the first time.
- The fifth generation (2012) saw the introduction of a variant with a backlight (Kindle Paperwhite) built into the screen casing. This made reading possible even after dark, in a consistently comfortable and eye-safe manner.
- The technology was refined over subsequent generations, and in late 2018 the waterproof Kindle Paperwhite was released for the first time.
Currently available models are lightweight, aesthetically pleasing, and very spacious (they can hold thousands of books, magazines, and documents). They also offer many convenient features, including virtual highlighting and saving of text fragments and a built-in dictionary that allows for the instant search for unfamiliar words. They also connect to the internet, allowing you to purchase books directly from your device and synchronize with the cloud, as well as search for entries on Wikipedia by highlighting a word in the text you're reading.
The Kindle is the reason the e-book market is what it is today. It's the most popular e-reader in the world, helping many people abandon paper books. In addition to the device, Amazon offers the Kindle Direct Publishing service. This free tool allows authors to publish their work in virtual formats and sell them in the Kindle Store. The uploaded document is automatically converted to the appropriate format and can be DRM-protected. It only takes a maximum of 24 hours for the e-book to appear in bookstores. You can set any price for it (from $0,99 to $200). After purchase, the author receives 35 or 70% of the net price. The service proved to be a huge success, allowing amateur authors to reach a wider audience. At the same time, it strengthened the Kindle brand and the Amazon brand as a whole.
Amazon is simplicity and convenience
Despite its expansion into a massive shopping platform, Amazon's user experience remains remarkably simple, as is its website design. The company's focus remains on the customer and their convenience. Jeff Bezos, the company's founder and CEO (and the world's richest man), admits that his focus on positive customer experiences is downright obsessive. The company boasts a highly developed delivery network, allowing ordered goods to reach their destination quickly. This is another factor that makes the service so popular. Amazon prioritizes customer satisfaction over profit from a specific transaction, which is why it often sells below cost, profiting from other services. This also allows it to offer customers an attractive returns and complaints policy. The e-commerce giant's vast resources allow it to set a very high bar that other online stores often struggle to meet.
Amazon dominates
The site's vast scale gives it access to a vast amount of data. This allows it to perfectly recognize and predict trends, focusing on promoting the right products at the right time. This knowledge also allows Amazon to create its own brands, under which it offers a very wide range of products. This allows it to compete on price even with sellers operating on the same platform. The store's own products also receive support in the form of promotion in search results and on the homepage. This is a self-perpetuating machine that allows the site to sell even more and thus create an increasingly attractive offer. This is why Amazon is increasingly being described as a monopoly, especially in the United States. Competing with it, at least in some areas, simply makes no sense.
The focus on customer satisfaction is so extensive that the service actually loses money on certain products and services (e.g., Kindle e-readers or Prime subscriptions). However, this way, it gains new customers and information about their shopping habits. This allows it to capture an even larger share of the market while simultaneously making up for lost sales in other areas of its business.
Currently, the service dominates half of the entire e-commerce market in the US. It leverages its position primarily to offer customers increasingly attractive shopping conditions and increasingly better products at increasingly lower prices. Moreover, Amazon's strength is constantly growing. It already possesses enormous capabilities and capital, making global market domination seem only a matter of time. Acquiring other relatively powerful market players or competing with them on price is no stranger to the store, so it's likely it will continue to operate this way.
Amazon's success is also driven by easy access to financial resources – it feeds its investors with constant growth and innovations, such as sky-high warehouses (who knows if this vision will ever come to fruition). Regardless, everyone is interested in capitalizing a company that is only going up.
Amazon in Poland
Amazon doesn't officially operate in Poland, although rumors of the launch of Amazon.pl have been circulating online for several years. This doesn't mean, however, that Polish residents can't use the e-commerce giant's services. Shopping is generally possible on any of Amazon's regional websites. Poles most often use the German version (Amazon.de), which has recently also launched a Polish language version. Many products can also be ordered to Poland from the British website (Amazon.co.uk) and the American parent site (Amazon.com). In Europe, the French version (Amazon.fr), Italian version (Amazon.it), and Spanish version (Amazon.es) also operate. However, it's worth noting that when ordering from overseas, for example, you may have to pay an additional, high shipping fee – especially for purchases from Marketplace, i.e., individual sellers listing their products on Amazon's platform. Buying from the German website often offers free shipping (usually for orders exceeding €39). Thanks to logistics centers located in Poland, delivery is fast – processing time is 3 to 5 business days. You can also pay extra for express or even 1-day processing.
How to order from Amazon to Poland? The process is very simple. However, you'll need to create an account on the site. You'll need to provide your address and, ideally, a credit or debit card number. This gives you access to a simplified shopping process with just one click. Interestingly, this feature is currently used by many e-commerce sites , but it was developed and first introduced by Jeff Bezos's website. A payment card is also required to use subscription services like Amazon Prime. On the German version of the site, you can also pay using Przelewy24 or standard direct debit, among other options. When browsing the site, you can immediately see whether a given product is being shipped to Poland, making it easier to find the right offer. Prices are displayed and billed in euros. In other national versions of Amazon, prices are always displayed in the local currency (pounds, dollars, etc.) and then converted to the payment currency using their own exchange rate. As already mentioned, the German Amazon has a Polish language version, which makes shopping almost as convenient as through the Polish website.
Will Amazon decide to officially enter Poland and offer a dedicated website? Time will tell. However, if it does, it could become a serious market threat, especially to Allegro, which currently dominates the domestic market and is still growing. The arrival of Bezos's website in Poland would likely result in fierce price competition with Allegro or even its acquisition.
Selling on Amazon from Poland
Amazon has recently been opening up not only to Polish customers but also to Polish sellers , allowing them to join its Marketplace platform. A dedicated website in Polish has even been created ( https://services.amazon.pl/ ). This allows you to list your products on all of Amazon's European websites, thus reaching hundreds of millions of customers! This is a very tempting opportunity, and a growing number of Polish e-commerce businesses are taking advantage of it. Fees for working with the service can vary. However, most stores use the plan costing €39 per month. Additionally, Amazon collects a commission on each purchase.
The service allows sellers to take advantage of various services. One of the most important is Fulfilment by Amazon, which operates similarly to dropshipping. Using the tool, the user must ship the listed goods to one of the retail giant's own warehouses and pay the appropriate fee. In return, after the customer places an order, it will be automatically fulfilled. This ensures fast delivery and the high standard of service they're accustomed to. Sellers can work much more conveniently, especially since Amazon also handles returns. Furthermore, products from stores using Fulfilment are more frequently promoted on the website, meaning they can reach a larger number of potential buyers.
Is it worth it? Each seller must decide for themselves, especially since competition on Amazon is fierce. However, it's an opportunity to expand their business into entirely new markets, which can be especially beneficial when selling unique goods, such as handmade items. Importantly, this platform makes operating across virtually all of Europe very easy. It's worth remembering, however, that knowledge of English is essential – all communication with the service is conducted in that language.
An e-commerce giant with many faces
Have we managed to answer the question, what is Amazon? We hope so. However, it's worth noting that the giant's operations are so extensive that enumerating all the areas in which it operates would require writing a book. In a relatively short time, the service has grown to such enormous proportions that it's now likely unstoppable. However, it's not free from controversy. Recently, there's been much discussion about working conditions at the company. Employees are increasingly accusing the company of exploitation – underpaid for a wide range of duties and responsibilities. Meanwhile, Jeff Bezos continues to grow wealthier – his net worth recently surpassed the magical $200 billion mark. The company's stock value is also soaring – at the beginning of the year, it exceeded $2000, and then, after a slight dip in March, it steadily rose to over $3000 today.
Amazon FAQs
Amazon is currently the world's largest e-commerce platform (marketplace) with a global reach. Founded in 1994 by Jeff Bezos, it was initially an online bookstore. Today, it's a technology giant that not only sells millions of products across almost every category but also offers its own devices, cloud services (AWS), and a streaming platform (Prime Video).
Sellers have two main cooperation models to choose from:
- Seller Central (3P): You sell products directly to end customers under your own brand, setting your own prices and managing your account. This is the most popular model for most businesses.
- Vendor Central (1P): You act as a wholesale supplier. Amazon buys your products at wholesale prices and handles the sales, pricing, and customer service itself. This option is available by invitation only.
When choosing the Seller Central model, you need to decide how you will fulfill orders:
- FBA (Fulfillment by Amazon): You ship your goods to Amazon warehouses. The platform handles the entire logistics process: packaging, shipping, returns processing, and customer contact.
- FBM (Fulfillment by Merchant): You store the goods yourself and are responsible for shipping to the customer and the complaints process (similar to your own online store).
Amazon Prime is a popular subscription program for shoppers that guarantees free and lightning-fast (often one-day) shipping. From a seller's perspective, this is crucial, as Prime users shop more frequently and are more likely to choose offers marked with the Prime logo. The easiest way to obtain this label for your products is to use FBA logistics.
Usually not. Due to the enormous competition on the platform, organically launching a new product is very difficult. The key to success is proper product page optimization (Amazon SEO – titles, bullet points, images, keywords) and launching paid Amazon Ads campaigns (e.g., Sponsored Products), which allow you to reach customers precisely when they're searching for a given product.
Summary
The above article covers the following topics:
- Amazon as a global leader in the e-commerce sector,
- Amazon's presence and role in Polish e-commerce,
- Amazon's multidimensional structure: from commerce to cloud services.
