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Amazon has launched three of its private label brands in Spain and other European markets.

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Amazon has announced 5% cash back on Whole Foods Market purchases for Prime members that use a Prime Rewards Visa Card.

This is the latest incentive introduced by Amazon to encourage its Prime members to shop with Whole Foods Market.

Amazon Rewards Cards

The Prime Rewards Card was introduced just over a year ago, designed to encourage Prime memberships and spending on Amazon.com by offering 5% cash back on Amazon purchases.

Its benefits will now extend to Amazon's US acquisition Whole Foods Market. The online retailer is offering Prime shoppers 5% cash back on purchases made with Whole Foods Market. Additionally, non-Prime members that pay with the regular Amazon Rewards Visa Signature Card will earn a 3% cash return. This perk marks the first time that Amazon has offered up to 5% back on purchases made outside of its own website.

Source: IGD Research

Loyalty programme

When Amazon acquired Whole Foods Market it stated that Prime benefits would become integrated into the grocer's loyalty programme, in a bid to encourage Prime members to shop there.

Earlier this month, Amazon began offering Prime members free two-hour delivery slots on Whole Foods Market orders in four US cities. The online retailer has also been offering Prime-exclusive deals on Whole Foods Market's products since its purchase. Most recently, Amazon discounted Whole Foods Market roses for Valentine's day.

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DIA and Amazon have extended the reach of their partnership, adding Prime Now delivery of La Plaza de DIA’s range in Valencia.

Building on Amazon and DIA's existing agreement

The DIA-Amazon alliance began in September 2016, when the two companies reached an agreement that saw DIA launch an online store on Amazon. Orders from the store were fulfilled from a single La Plaza de DIA store in Madrid, with orders completed and delivered via Amazon’s Prime Now service. The Prime Now service offers Prime customers deliveries within a one or two-hour window between 10:00 and 00:00, seven days a week.

An evolving partnership

After a positive reception for the service from shoppers in Madrid, it was extended to Barcelona. Orders in that city are managed and fulfilled from a DIA warehouse dedicated exclusively to online orders.

With the recent announcement, DIA and Amazon have extended it to Valencia. Shoppers in the city can now choose from 6,000 SKU's. Unlike the Prime Now service in Madrid and Barcelona, Prime customers in Valencia can also purchase Amazon’s own products as part of their order.

Amazon’s Spanish network is expanding across sectors

As Amazon has expanded in Spain it has been able to grow its range, add-value for shoppers through its short delivery times, helping it to integrate itself into their buying habits and setting shopper expectations of what ecommerce should provide.

For example, Amazon’s partnership with Madrid’s Mercado de la Paz was the first time in history that a market was integrated into Prime Now. In Valencia, Amazon is continuing this trend by partnering with merchants from the Central Mercat de Valencia. Orders can be placed through Prime Now, with delivery charges applying on orders under €50.

Spain’s municipal markets are deeply rooted in Spanish society, and represent the Spanish cuisine’s renown for creativity, freshness and quality. Partnering with local and emblematic markets is a powerful and innovative way to increase Amazon’s brand awareness and reputation in Spain.

Furthermore, it gives Amazon the potential to boost the uptake of ecommerce in the country more widely. Amazon’s growth, therefore, should help other retailers expanding online, if they can make their offers and deliveries work. If not, Amazon and DIA, through its partnership, could benefit more than most from ecommerce’s growth in Spain.

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Amazon has announced the launch of Amazon Business on amazon.fr, its third European marketplace.

Companies with operations in France can now purchase business supplies and access a range of business-tailored features in their local language.

Strong French market

Amazon have successfully tapped into a French B2B e-commerce market worth €71 billion. Amazon claim that online B2B sales represent around 3% of total commerce in France, and Amazon.fr saw 16 million visitors a month last year. Such a strong French market will help to increase Amazon's business clientele even further, having already served over 90,000 business customers since its launch in the UK last April.

Implications for UK business

The addition of the French market on Amazon Business means that small businesses in the UK selling on the marketplace have an opportunity to increase their B2B and export sales, as they can now reach new business customers in France. A substantial amount of small UK businesses use Amazon Business, with over 30,000 independent third-party sellers having accessed the seller feature set. Furthermore, UK businesses with entities in France can now manage their business needs across Europe more effectively.

Amazon Business continues to grow globally, with businesses in the US, UK, Germany, Japan, India and now France utilising the service.

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