Introduction:
The landscape of commerce in Italy is undergoing a profound transformation, with e-commerce taking center stage as a potent catalyst for economic development. A recent study conducted by The European House – Ambrosetti, in collaboration with Amazon, unveiled at the Cernobbio Forum 2023, reveals the remarkable significance of e-commerce in Italy. This study, titled “The Scenarios of Today and Tomorrow for Competitive Strategies,” underscores the pivotal role played by e-commerce in fostering growth opportunities for businesses.
E-commerce’s Expansive Impact:
The data from this study paints a compelling picture of the e-commerce revolution in Italy:
- €48 billion in transactions
- €71 billion in turnover
- 380,000 employees engaged in e-commerce activities
Italian businesses embracing e-commerce have experienced remarkable growth, with an average increase in turnover of 8.8%, a margin of 8.1%, and exports surging by 8.1%. Notably, small and medium-sized enterprises (SMEs) have reaped even more substantial benefits, witnessing an extraordinary increase in turnover exceeding 9.3%, margins exceeding 64%, and exports growing by over 3%.
Multifaceted Benefits of E-commerce:
Companies adopting e-commerce in Italy are not limited to online gains; they also witness substantial improvements in their physical operations. Key benefits include:
- Increased Brand Awareness: Seven out of ten companies surveyed reported enhanced brand visibility.
- Innovation and Multichannel Experience: Six out of ten companies innovated their offerings through a multichannel approach, improving after-sales services.
- Wider Customer Base: Six out of ten companies expanded their customer base both domestically and internationally.
The cumulative effect of these benefits, when extrapolated to all Italian companies poised for digital integration, could inject a substantial boost of over €110 billion into Italy’s economy, equivalent to 6% of the GDP in 2022.
E-commerce as an Inflation Buster:
E-commerce’s positive effects extend to combating inflation, a concern for Italian households and businesses alike. Online shopping has facilitated access to lower prices and a broader range of available products. Even during periods of inflation, online prices in Italy remained stable, totaling approximately €40 billion in purchases over the last three years. Remarkably, without the widespread adoption of e-commerce, inflation over the last six years would have been on average 5% higher.
Amazon’s Role in the E-commerce Landscape:
Amazon, a pioneer in e-commerce, plays a pivotal role in the Italian market. Recognized as the leading brand, Amazon is lauded by Italians for its contributions to purchasing power, affordability, diverse offerings, and expansive product variety. Amazon’s commitment to customer-centric decisions has garnered widespread acclaim.
Amazon’s contribution extends beyond retail, as it serves as a platform for third-party sellers and SMEs, with nearly 60% of items sold on Amazon originating from these entities.
In 2022, Amazon invested over €8 billion in logistics, services, tools, and training across Europe. This commitment led more than 21,000 Italian SMEs to choose the Amazon store, with over half of them exporting their products, resulting in export sales exceeding €950 million—a 20% increase from the previous year.
SMEs flourished on Amazon’s platform, listing over 125 million products, an increase of 20% from the prior year, translating to more than 250 products sold per minute. Among these SMEs, 850 exceeded €1 million in sales, and over 5,100 surpassed €100,000 in sales. Amazon remains steadfast in its support of local entrepreneurs, with a goal of helping them achieve €1.2 billion annually in export sales by 2025.
Unleashing E-commerce Potential:
Despite the transformative impact of e-commerce, Italy has yet to fully tap into its potential. E-commerce currently represents only 12% of total retail sales in Italy, significantly lower than the European average of 18%. A mere 13% of Italian SMEs engage in online selling, further underscoring the untapped possibilities.
Supporting Italian Growth:
Amazon is committed to empowering Italian businesses and the “Made in Italy” label. Initiatives such as the Amazon Made in Italy showcase, featuring over 5,500 Italian companies across 11 countries, and the “Accelera con Amazon” training program, supporting over 35,000 Italian businesses in their digital transformation and internationalization journeys, exemplify this commitment.
Collaboration between the public and private sectors is pivotal to unlocking the full potential of e-commerce as a growth multiplier for the Italian economy. It entails promoting awareness of e-commerce benefits, fostering trade industry development, launching national plans to enhance digital workforce knowledge, bolstering Digital Export support, and harmonizing legislative and regulatory frameworks between Italy and the EU.
The partnership between Amazon and ITA Agency, initiated in 2019, continues to drive these initiatives. Together, they are dedicated to showcasing Italy’s excellence to a global audience, emphasizing the collaborative spirit that fuels Italian e-commerce growth.
