Amazon VP Marseglia: E-commerce and Physical Retail Will Coexist

Predicting a future “where e-commerce and traditional commerce will coexist,” Marseglia stated, “Customers don’t prefer only physical stores or only e-commerce; they use both.”

Marseglia: Online Stores Are a Complementary Service to Traditional Retail

Emphasizing that consumers need both online and physical store options, Marseglia said that the industry should address both sides. She noted that online stores like Amazon offer a perfect way to access special or rare products that physical stores cannot stock due to space limitations. She continued:
“When I started working at Amazon, I was leading the books division. We offered millions of books on our endless shelves, including foreign language books and rare books. A regular bookstore cannot accommodate these products. So this is a complementary service to traditional retail.”

Citing the example of UK-based supermarket chain Morrisons, which offers delivery services via Amazon, Marseglia said, “This model has been successfully run alongside physical stores and their own online delivery services.”

“Customers Are Delaying Purchases”

Marseglia noted that rising living costs have had a significant impact on customers’ spending habits: “What we observe is that people are becoming a bit more conscious in their spending. They focus more on basic needs and act more cautiously when deciding on long-lasting products. For example, they used to replace a washing machine every 10 years; now they are delaying this even further. They are postponing such purchases. Also, they are showing much more interest in promotional campaigns. They wait for these periods to seize opportunities and save money.”

“More Than 127,000 European SMEs Operate on Amazon”

Marseglia stated that more than 127,000 European-based SMEs operate on Amazon and added: “We are not a disruptive force. On the contrary, we are a catalyst for their growth, an ally. Thanks to a company like Amazon, the job of SMEs becomes easier. Because we, for example, allow them to export abroad very easily.” She also noted that Amazon has contributed €41 billion to the European Union economy — a figure equivalent to the entire economy of Latvia or Estonia.

Underlining that the business environment in Europe is more challenging compared to the United States, Marseglia continued: “The U.S. market consists of a single large common market. In Europe, we must do more to make it a single market because it still functions like 27 different markets. As a large and established company, we can handle this. But for small businesses selling on our platform, it is much more difficult. Dealing with complex regulations and legislation is much more burdensome for them.”

Amazon Employs Around 230,000 People Across the Continent

Amazon is the market leader in the largest e-commerce markets in Europe. Last year, its revenue in Germany increased by 8.7%, while its revenue in the United Kingdom grew by 12.7%. An increasing portion of its revenue comes from advertising sales, as the company continues to leverage its wide reach in this way. Last year, Amazon invested €55 billion in the European economy. It employs approximately 230,000 permanent workers across the continent.