Online shopping platform Amazon is preparing to build a Polish-language website so that local shoppers no longer need to order products through its German website. The company said on Wednesday that this has caused the share price of its biggest local competitor Allegro to fall by more than 7%.
Since 2014, Amazon has 9 logistics centers in Poland, but customers must order through its international website, which increases costs. Local media have been reporting for months that the group is preparing to launch a local online shopping platform.
“Amazon has been supporting Polish customers for many years and helping us sell Polish entrepreneurs’ products in European stores. The next step is to provide Polish consumers with comprehensive retail services. Now is the time to take this step,” Alex Ootes, vice president of Amazon’s EU expansion, said in a statement.
Amazon’s expansion has increased competition in the Polish Allegro market, which is the country’s main e-commerce platform.
mBank analyst Pawel Szpigiel said in a report: “Allegro will be forced to provide more free shipping options, which will increase logistics costs.”
Allegro made its debut on the Warsaw Stock Exchange in October and is one of Europe’s largest IPOs in 2020.
At 10:12 GMT (3:42 PM U.S. Standard Time), Allegro’s stock fell more than 7%.
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