Adrian Weckler, Tech Correspondent with the Irish Independent, discusses the launch of Amazon.ie in Ireland, which eliminates the need for local users to rely on the UK version. He delves into its subscription model, which is cheaper but raises questions about the equivalent shopping experience. The conversation highlights potential challenges for small retailers due to Amazon's impact on local competition and the necessity for them to adapt to new consumer behaviors. Weckler also addresses the hurdles faced by Irish businesses navigating the Marketplace.
The launch of Amazon.ie in Ireland reduces subscription costs and allows local sellers to reach consumers without customs duties, expanding product availability.
Irish retailers emphasize their competitive edge in personal service and unique offerings, aiming to retain customers despite the challenges posed by Amazon's dominance.
Deep dives
The Significance of Amazon.ie Launch
The launch of Amazon.ie represents a major step for online shopping in Ireland, allowing local sellers to access the marketplace without facing customs duties typically associated with purchases from the UK. This change enables products like protein powder to be sold directly in Ireland, broadening the range of what's available to consumers. Additionally, the pricing structure has shifted, with a new monthly subscription price of €7 compared to the previous €11 for Amazon.co, attracting interest from potential customers. However, this lower price comes with limitations, including fewer products available for Prime shipping and missing features like family sharing and Prime reading, prompting many users to reconsider switching from the established .co version to the new .ie service.
Challenges for Local Retailers
The existence of Amazon.ie raises concerns for Irish retailers who have faced competition from the online giant for years. Local retailers emphasize their strengths in personal service and unique product offerings as key areas where they can compete against Amazon's convenience. While Amazon's arrival may lead to an increased reliance on online shopping, local retailers are promoting the importance of supporting brick-and-mortar stores that provide community connections and personalized service. Despite the competition, many retailers believe they can maintain their customer base through quality service and the value of in-person shopping.
Economic Viability for Irish Brands
The financial implications of selling on Amazon's platform may prove challenging for many Irish businesses due to high commission rates that benefit only those with high-margin products. The platform takes a sizable cut of sales, leading some local businesses to question the feasibility of competing on the marketplace. Although Amazon offers logistical support for sellers, small retailers may struggle to turn a profit under the existing economic model, limiting their participation. This situation highlights the stark contrast between the operational needs of traditional retailers and the demands of selling on a large online marketplace like Amazon.