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Ronan Smyth: Amazon.ie a prime marketplace that brings concerns

Ronan Smyth: Amazon.ie a prime marketplace that brings concerns

  • 19.03.2025 08:27
  • msn.com
  • Keywords: Marketplace, Prime

Amazon has launched Amazon.ie to support Irish SMEs through its "Brands of Ireland" initiative, but retailers remain cautious due to concerns about relying on a global tech giant. While Prime membership costs have dropped for Irish consumers, potential risks and rising costs could impact long-term benefits for both businesses and customers.

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Amazon is accused of manipulating search results to promote its own products at the expense of other sellers.

Context

Analysis of Amazon.ie Launch in Ireland: Business Insights and Market Implications

Key Facts and Data Points:

  • Amazon.ie: Launched as a dedicated marketplace for Irish consumers and businesses.
  • Brands of Ireland Page: Focuses on supporting small- and medium-sized enterprises (SMEs) with growth opportunities.
  • Prime Membership Price:
    • New price: €6.99/month (reduced from £8.99/€11.26 via Amazon.co.uk).
    • Potential for future price increases.
  • Employment: Already employs ~6,500 people in Ireland across roles like data engineering and operations.
  • Brexit Impact:
    • Previously, most products were dispatched from the UK, subject to import fees post-Brexit.
  • 2021 Allegations: Amazon faced accusations of manipulating search results and creating knockoffs to promote its own merchandise in India. The company denied these claims.

Market Trends and Business Impact:

  • Consumer Benefits:
    • Reduced Prime membership costs.
    • Removal of import fees for Irish consumers.
    • Potential increase in website traffic due to localized branding and SME focus.
  • SME Concerns:
    • Risk of being at the mercy of Amazon's algorithms and policies.
    • Fear of unfair competition from Amazon’s own products or manipulated search results.

Competitive Dynamics:

  • Amazon’s Strategy:
    • Building a strong local presence through partnerships with Irish businesses.
    • Using "Brands of Ireland" to differentiate itself while expanding its marketplace.
  • Potential Risks for SMEs:
    • Dependency on Amazon's platform and rules.
    • Historical issues in other markets (e.g., India) raise concerns about fair treatment.

Strategic Considerations:

  • Amazon’s Investment:
    • Established a fulfillment center in Dublin (2022).
    • Indicates long-term commitment to the Irish market for ROI.
  • Consumer Attraction:
    • Lower prices and localized services aim to drive traffic and loyalty.
    • Risk of cutting these initiatives if costs rise or profits decline.

Long-Term Effects:

  • Irish Business Decisions:
    • SMEs must weigh benefits (growth opportunities) against risks (algorithmic bias, dependency).
  • Market Expansion:
    • Amazon’s move could intensify competition in the Irish e-commerce sector.
    • Potential for broader implications on pricing and consumer behavior.

Regulatory Implications:

  • While not explicitly addressed, past allegations highlight the need for scrutiny of dominant players in online marketplaces.