Amazon entry into Egypt heat up the local

On Aug 31, Egyptian Prime Minister Mustafa Madbouly introduced a logistics zone for e-commerce giant Amazon. This zone is about 28,000 square meters. Many misters and representatives of Amazon had attended the opening ceremony of it. 

The introduction of this new zone corresponds with the re-branding of Souq.com. Souq.com is the online retailer which Amazon now owns since 2017. This website is now known as Amazon.eg.

Also Read: Automotive sector is struggling to survive the chip shortage.

Amazon Services to Egyptian

Amazon marks its words that they will try their best to provide the facility of good products, fast delivery, great prices and easy payment options through them. 

Amazon’s investments have exceeded up to 1 billion Egyptian pounds ($63.5 million), and they have almost  15 delivery stations across Egypt. 

So they are going to utilize all these resources to provide such offers. 

All these services will not just help Egypt’s in such gestures only. This will lead up to steady growth of the economy as well during such covid pandemic. 

Prosper from Amazon

According to official stats, the e-commerce market volume in Egypt is now worth about 80 billion Egyptian pounds ($4.8 billion).Including the informal pages on social media platforms of buying and selling goods. The worth of the volume of e-commerce will reach five times that in the future, i.e. 400 billion Egyptian pounds ($25.4 million). 

However, the coming of Amazon in Egypt is a prosper in many ways. It will create job openings for the folks of Egypt who were unemployed during the pandemic. Also, it will help to increase the size of the internal trade sector and trigger the competition a lot. The increasing competition among the retailers will help to give a high-quality product. 

E-commerce has its own strategies and customers. And itself targets a specific segment or group of elements of consumers accordingly. 

The presence of such a big international company, which is very well reputed in other countries, helps a lot in the growth. This also conveys that Egypt can invite huge investments in there. When Amazon first came to Egypt, it announced the 3,000 local job opportunities. Amazon also asks for the land from Egypt to set up the warehouses. 

Egypt is the prominent source of foreign investors in Africa. And having successful investments in Egypt will make investors more to invest in African countries. 

The negative impact on Egypt?

Amazon’s presence will built competition among the local companies. And then local companies will try their best to improve the products so that they can win the consumers’ trust. However, the presence of Amazon will indeed affect the small merchants in Egypt. Small merchants try their best to sell their products through social media. Still, they are unable to sell it due to the competition of global companies. 

Amazon provides the best discount offers, which consumers can also feel from Black Friday. 

Egyptian companies now have the better opportunity to enter new markets by displaying products via Amazon.eg. This is boosting up foreign trade. 

Abdo requested the Egyptian government to support its experiment with Amazon.eg. The government should build trust so that it will be more ease for foreign investors to invest in Egypt. 

Amazon was able to understand their Egypt customers needs and demands. So it was not challenging for them to overcome the expected problems. 

Amazon.eg also trying its best to improve the quality of its products; otherwise, it will lose its customers trust.

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