Amazon boosts financial involvement in Germany
Amazon, the global e-commerce giant, has been steadily increasing its presence in Germany over the past decade. Between 2014 and 2023, the company invested a staggering €9.6 billion in computing capacity and other areas within the country. This investment has been part of Amazon's broader €90 billion commitment to Germany since 2010.
The latest investment, announced in 2024, saw Amazon pumping an additional €14 billion into the German market, marking a significant increase from the previous year. This new investment will be spread over three years, rather than the ten-year period of previous investments.
Amazon's growth in Germany is evident in its workforce. The company currently employs around 40,000 people in the country, an increase of 4,000 from the previous year. These employees work in various sectors, including logistics, sorting, development centres, and independent contractors who deliver packages for Amazon.
In terms of infrastructure, Amazon has built new facilities in several locations, including Horn-Bad Meinberg (NRW), Dummerstorf (Mecklenburg-Vorpommern), and Erfurt (Thuringia). Additionally, new logistics centres are set to be established in Bietigheim (Baden-Württemberg), Köhnern (Sachsen-Anhalt), and Rohr (Bavaria).
Amazon's expansion in Germany is not limited to its physical presence. The company has been developing an AI tool to help entrepreneurs manage their businesses more efficiently. This tool can automatically reorder stock, manage advertising campaigns, and issue commands for storage or price changes. The AI tool is expected to be released in Germany in the coming months.
However, Amazon's dominance in Germany's online retail market, accounting for around 60%, has attracted the attention of Germany's competition authorities, who are closely monitoring the company due to its dominant market position.
Smaller competitors in the German online retail market, such as the Hamburg-based online retailer Otto, are also vying for a share of the market. For entrepreneurs using Amazon's marketplace, the AI tool offers a degree of autonomy that can help streamline operations. Entrepreneurs can decide how much control they want to give to the AI assistant.
Amazon's development centres are also working to enhance the Alexa voice assistant. Amazon Germany CEO, Rocco Brauniger, has stated that developers are working to improve speech recognition so that Alexa understands Saxon, Bavarian, and North German dialects.
Looking ahead, Amazon Web Services (AWS) plans to invest €8.8 billion in its infrastructure in the Frankfurt region by 2026. While specific details about planned expenditures for 2025 and 2026 have not been announced, Amazon Germany CEO Rocco Brauniger has stated that the company will continue to invest heavily.
In summary, Amazon's continued investment and expansion in Germany are set to shape the future of e-commerce in the country. The company's AI tool and enhanced Alexa voice assistant are expected to provide significant benefits for entrepreneurs, while its physical infrastructure expansion will support the efficient delivery of goods to customers. However, the company's dominance in the market has raised concerns from competition authorities, and smaller competitors are vying for a share of the market.
