Amazon ranked n°1 in France for the first time

PwC / Toluna / LSA have just released the ranking of the Top30 e-retailers in France for the year 2014.

For the first time, Amazon is ranked N°1 with estimated sales at 1,5Bn€ vs. 1,3 Bn€ for Cdiscount which was before the historic French ecommerce leader.

This new leadership is achieved after significant investments from Amazon on the French market mainly on its market place and its operations & distribution activities. No doubt that Amazon is now leveraging its investment in the parcel distribution company Colis Privé (a challenger of La Poste) along with its 4 distribution centers located close by the major metropolitan areas.

On all categories except food, Amazon ranks N°1 and out performs the traditional French leaders such as La Redoute for fashion or Sephora for cosmetics. Although this performance can be outlined, there is still room for future growth for the American e-merchant as its market share remains under 3% of the 57Bn€ French e-commerce market vs. 25% in the US. « Amazon France is hungry and I’m convinced that this performance is only a starting point » explains Jérôme Gaye, CEO & founder at B.D.C.

In the meantime, other pure-players (only 12 out of 30) are losing ground facing higher competition from retailers that offer slowly but surely better services such as click&collect and click&reserve.

« We believe that Amazon will keep for long the market leadership in France and increase the gap vs. its followers as they are still investing massively in services. For instance, we expect them to launch the same day delivery service in 2015 in major French cities located near by its distribution centers. Retailers are undoubtly willing to come back in the race but investments remain too low and execution too slow to really compete with Amazon and win back the leadership. Even Cdiscount which can rely on the support of the Casino group (its main shareholder) and its large super and hypermarkets network in France» states Jérôme Gayet.

« Nevertheless, the largest retailers should be more aggressive in the coming years as they are all investing in improved e-commerce platforms and new digital talents to compete with the American giant and other pure players. They can rely on large nationwide networks deployed also in medium size towns and thus benefit from a strong proximity for French consumers” adds Jérôme Gayet.

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