Daily Management Review

In Europe, Second-hand Shopping Generates Over $1 Billion In Revenue For Amazon


In Europe, Second-hand Shopping Generates Over $1 Billion In Revenue For Amazon
According to Amazon's UK CEO, the demand from consumers for reconditioned and pre-owned products in Britain and around Europe has grown to be a billion pound ($1.3 billion) industry.
Many manufacturers and merchants anticipate that tendency to continue as consumers seek to make more sustainable purchases and save money in response to growing borrowing rates and prices.
Amazon's UK Country Manager, John Boumphrey, informed reporters that the e-commerce behemoth sold over 4 million discounted used or refurbished items in the UK alone last year.
He continued, "Amazon's sales of used goods in the UK increased by more than 15% on the same period last year in the first nine months of 2023."
In 2022, Amazon UK made a total of 24 billion pounds.
"Customers are telling us that they’re shopping second hand items to save money in the ongoing cost of living crisis and because they want to shop more sustainably," Boumphrey told reporters.
He was giving a speech at the opening of Amazon UK's "Second Chance Store," a London pop-up store for Christmas that sells reconditioned and returned goods.
By 2040, Amazon wants to have zero net carbon emissions.
Many environmental activists doubt that big businesses will be ready to reduce their emissions since they regard it as more of a publicity stunt. However, big businesses assert that their size allows them to have an impact.
Additionally, Boumphrey told Reuters that Amazon executives were wondering if they had enough visibility to spend due to the volume of legislative changes occurring in Europe, especially in Britain.
"There’s an awful lot of changes to regulation, not only in the UK but also in Europe, and one of the things they’re asking is: is this going to give us long term certainty," he said in an interview.
He raised worries about the Digital Markets, Competition and Consumers Bill, which is presently passing through the UK parliament and would allow the country's antitrust agency to legally create regulations specifically for large digital corporations.
Following the uncertainties caused by its leaving from the European Union and the political unrest of last year, the UK government this week celebrated 29.5 billion pounds of foreign investment as evidence that Britain was regaining its economic attractiveness. This is when Boumphrey made his comments.
According to Boumphrey, Amazon has made 56 billion pounds in investments in the UK since 2010, of which 12 billion were made in just 2022.
(Adapted from CNBCTV18.com)