German market receives strengthened financial commitment from Amazon
In the coming months, Amazon is set to release an AI assistant for businesses in Germany, aiming to automate various tasks such as reordering stock, initiating advertising campaigns, and issuing commands for storage or price changes. This development is part of Amazon's ongoing investment in the country, which has seen significant growth over the years.
Amazon is the market leader for online retail in Germany, accounting for around 60% of the market. The company's stronghold in the market is evident in its continued investment in development sites, with new sites built in Horn-Bad Meinberg (NRW), Dummerstorf (Mecklenburg-Vorpommern), and Erfurt (Thuringia).
Amazon's investments in Germany extend beyond retail. Its AWS division has invested 9.6 billion euros in computing capacity and other areas in Germany between 2014 and 2023. Moreover, Amazon is planning to invest over 8.8 billion euros in AWS infrastructure in the Frankfurt region by 2026.
The entrepreneur can decide how much autonomy the AI assistant has, making it a flexible tool for businesses of all sizes. Amazon's AI applications are becoming increasingly important, including summarizing product reviews and answering specific topics.
Amazon stores goods in logistics centers to sell them online, and the company is planning to establish new logistics centers in Bietigheim (Baden-Württemberg), Köhnern (Saxony-Anhalt), and Rohr (Bavaria) in 2025 and 2026. Additionally, they plan to convert an existing building in Zweibrücken (Rhineland-Palatinate) into a logistics center and to open new sortation and distribution centers in Allersberg (Bavaria), Ettenheim, and Bad Urach (both Baden-Württemberg).
Amazon is also focusing on localising its services. Amazon is developing Alexa to understand Saxon, Bavarian, and North German dialects, making it more accessible to a wider audience.
Amazon now employs around 40,000 people in Germany, an increase of 4,000 from a year ago. The company's continued growth is reflected in its increased investments. Amazon is investing approximately 14 billion euros in Germany in 2024, a 2-billion-euro increase from 2023.
However, the Federal Cartel Office considers Amazon to have an 'overwhelming' cross-market significance for competition in Germany. Amazon Germany CEO Rocco Brauniger mentioned continued strong investment but did not comment on planned expenditures for 2025 and 2026.
Since 2010, Amazon has invested around 90 billion euros in Germany, a testament to the company's commitment to the country. With its new AI assistant, expanded logistics network, and continued investments, Amazon shows no signs of slowing down in Germany.
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