"Retailers, wholesalers and distribution businesses that are going to be presented with challenges they havent previously encountered as Amazon continues to scale up its business in the UK"
Manchester based Maginus, a leading wholesale distribution and retail IT solution provider, has warned that Amazon’s increased activity in the market will seriously challenge the entire retail supply chain.
Speaking at a conference at its Manchester headquarters, attended by retail, wholesale and distribution businesses, Maginus Marketing Director Mark Thornton told delegates that Amazon would pose a series of unique challenges as existing businesses in the sector seek to remain profitable.
With the US giant building several new distribution centres around the UK, Amazon will continue to shake up the retail sector as it continues to offer a range of ‘value add’ services and makes forays into new sectors as seen with its efforts to enter the grocery market with Morrisons.
Furthermore the company is continuing to develop its Amazon Business offering, which launched in the US last year, offering 20 million items, with Amazon itself selling nearly 2 million products directly to businesses. A BETA version of the service is currently available in the UK as Amazon looks to expand the offering into new geographies. The Business offering has been an instant success, recording $1 billion in sales in the year since it launched.
“Retailers, wholesalers and distribution businesses that are going to be presented with challenges they haven’t previously encountered as Amazon continues to scale up its business in the UK,” commented Mark Thornton, “Amazon has proved itself to be ruthlessly capable and highly efficient, using technology to drive down costs and develop ever more product lines and service offerings. If UK businesses are to see off this challenge they must look to exploit the weaknesses Amazon has and invest in technology to level the playing field. By doing this they will be well positioned to thrive in a market where Amazon has an ever growing presence.”