Amazon delivery network in Germany?

It has been reported that Amazon is looking to set up an in house delivery network in Germany. With some companies’ parcel volumes from Amazon being as high as 35% of their total, this could be a significant threat to the parcel delivery business as a whole in the country.

It is reported that Amazon has been looking at taking over a distribution centre in Olching near Munich, which would serve the major city. German media is reporting that Amazon is setting up a distribution network to serve major cities in Germany. Bernd Schwenger, a manager of Amazon.de, is reported as saying that this would be to add flexibility to the company’s delivery options, and that it would still work with the delivery companies it currently does business with.

Industry analysts say that should Amazon take all of its delivery business in house it could seriously impact the e-commerce delivery business throughout Europe. A report published last year suggested that Amazon accounts for as much as 35% of some delivery businesses’ parcel volumes.

Amazon has invested in a number of delivery companies across Europe, notably Yodel in the UK after one of its major delivery companies City Link went bust in 2014. The report, Amazon’s move into Delivery and Logistics, suggested that with the major investments in fulfilment centres around the world, there is only so much investors would allow. Buying in massive fleets of vehicles and distribution centres would cost billions of Euros and this would probably be a step too far for its investors.

Amazon has been trialling an air freight service across northern Europe and domestically in the US. Though some suggest that it won’t take the leap there are signs that it may just be doing what industry insiders say is unlikely…

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