Jeff Bezos originally wanted to call his online bookstore ‘Cadabra’ – with his products arriving like magic. Abracadabra!
But after being advised it sounded too like ‘cadaver’ over the phone, Bezos opted for the name Amazon, after leafing through the A section of the dictionary.
What has been like magic is the transformation of Amazon into a global superpower in the retail world.
With Amazon.ie opening its virtual doors last month, many small Irish businesses are wondering if the king of the jungle is coming to eat their lunch.
“While it doesn’t keep me up at night, I think any Irish retailer would be naive not to be worried about any large player like Amazon expanding in Ireland,” said James Byrne, Co-Founder of Faerly, an online store that stocks eco-friendly products.
He set up the company with his husband Eoin back in 2020 to share sustainable products they were using in their own lives – some which are also stocked on Amazon.
“Amazon is unique in that they sell such a wide range of products – at some level they compete with everyone,” he said.
But he believes competition is a good thing.
“It helps us all be better which is ultimately good for consumers and good for business,” he said.
According to Mr Byrne, Faerly offers a compelling alternative to Amazon.
“For example, we offer a wide range of products that are not sold on Amazon, we plant a tree for every order and we avoid virgin cardboard for the majority of our deliveries,” he explained.
The team also writes a personal handwritten note to every single customer and includes a sweet treat.
“We want all of our customers to know that we truly appreciate it every time they choose to support our business and shop with us,” he added.
When it comes to next day delivery, they’re also on par.
“Generally, if we receive an order by 2pm, our customers in Ireland will have it at their door by DPD on the next working day,” he added.
However, on a personal level, Mr Byrne feels the race to faster and faster deliveries is a bit unnecessary.
“Where are we all rushing to? Do any of us really need coffee delivered by drone? Is getting my delivery on a Sunday really improving my quality of life? Do I definitely need the latest trend from Temu or TikTok shop?,” he asked.
“We don’t believe in policing how anyone shops but we do believe there’s a lot to be said for slowing down a bit and investing in fewer but better things that last longer and bring more satisfaction in the long run,” he added.
To help small businesses compete with the big players, Mr Byrne believes more Government supports are needed.
“Small retailers have the same burden of rules and regulations as all the big players, but we get much less support and we just don’t have the same level of resources,” he said.
“A business like ours doesn’t have the resources to have an in-house HR, IT or finance function – we have to wear many hats.
“The Government could do a lot more to help reduce this burden on small and micro businesses and to combat the constantly rising costs of doing business, and to make sure that all businesses, regardless of size, are contributing to our society by paying their fair share into the social pot,” he added.
While Mr Byrne believes Irish consumers want to support local, it doesn’t always happen.
“There’s always a disconnect between the good intentions of how much Irish people express that they want to support Irish brands and products, compared to the reality that over 70% of online shopping in Ireland still comes from abroad,” he pointed out.
While Faerly and many other Irish companies are in direct competition with Amazon, others are deciding to join them.
According to Amazon, over 1,000 Irish businesses are selling on its global platforms, supporting 2,500 jobs and exporting €170m worth of goods.
One such company is EarthChamp, which produces plant-based protein powder at its factory in Dublin.
“EarthChamp is one of the best-selling plant-based protein powders on Amazon in both the UK and Germany, which is something we’re really proud of,” said Founder Dave McGeady.
As a small manufacturing business, Mr McGeady said one of their biggest challenges was reaching new customers abroad.
“Ireland’s brilliant, but it’s a small country – and if you want to grow, you’ve got to export,” he said.
“We were struggling to do it on our own.
“A few friends who were selling on Amazon told me to give it a shot – and honestly, it changed everything.
“Amazon helped us solve two of our biggest headaches – finding customers, and actually getting the product to them,” he added.
By letting Amazon handle the heavy lifting of logistics and deliveries, the team at EarthChamp could focus on producing their product.
Today, most of the company’s sales go through the Amazon platform.
“We can now ship pallets straight from our factory in Dublin to Amazon’s fulfillment centres in Boston, Birmingham, Berlin – and now Baldonnell.
“It’s honestly opened up the world for us,” he said.
When asked how he believes the rollout of Amazon.ie will impact the business landscape in Ireland, Mr McGeady said he’s excited about it.
“I think Amazon.ie will create new opportunities for small Irish businesses to start selling online more easily.
“I’d love to see more Irish brands using Amazon.ie as a kind of launchpad – learn how it all works here at home, and then use that experience to go bigger, into places like the UK, Germany, and the US,” he said.
Brands of Ireland
The new Amazon.ie platform features a ‘Brands of Ireland’ page, which sells products from Irish companies including Barry’s Tea, Bewley’s, Swifter, and Ella & Jo.
Alison Dunn, Ireland Country Manager at Amazon said the number of Irish businesses listed on the site will continue to grow.
“Our selling partners tell us that Amazon is great value, that their customers trust shopping with us, and that the services we invest in and provide help their businesses grow.
“Take for example Ella & Jo, one of our Irish sellers who are Ireland’s fastest growing skincare brand – they have driven 300% growth in their business selling on Amazon,” she said.
According to Ms Dunn, it’s a straightforward process to get started selling on the platform.
“We’re proud to be working with Enterprise Ireland to support even more Irish-owned businesses achieve greater scale and success through Brands of Ireland on Amazon.
“We’re also holding workshops with Enterprise Ireland and Bord Bia clients to ensure Irish sellers have the best opportunity to grow, both in Ireland and in export markets.
“So, we’d encourage Irish businesses of all kinds to get in touch with us to see how we can help,” she said.
When asked what she would say to Irish businesses concerned that the rollout of Amazon.ie will negatively impact their small operation, Ms Dunn said:
“We only do well when our selling partners do well, in fact more than 60% of the products we sell are from our selling partners – most of whom are small and medium businesses, so we’re doing a lot to support Irish businesses and help them get online.
“This is also why we’re working with Enterprise Ireland and Bord Bia to help Irish businesses learn more about the services we provide, and how we can help them grow, both in Ireland and abroad,” she added.
‘No one-size-fits-all solution’
While many Irish businesses like EarthChamp and Ella & Jo are thriving by selling through Amazon, Retail Excellence Ireland is advising its members to approach this option with careful analysis.
“For some businesses – particularly those with high-margin products that can be sold in significant volume, Amazon’s marketplace can provide valuable additional exposure and sales,” said Jean McCabe, CEO of Retail Excellence Ireland.
But she said this isn’t a one-size-fits-all solution.
“Many retailers who rush to Amazon without thoroughly understanding the fee structure, competitive dynamics, and operational requirements often find themselves in a challenging position, generating sales but seeing their margin shrink after fees are deducted,” she warned.
“One has to be careful not to become a “busy fool” – working harder than ever while watching margins shrink,” she added.
While the rollout of Amazon.ie is new, Irish businesses have been competing with the UK site and other international platforms for decades.
Retail Excellence Ireland says its members are resilient.
“Remember that you have advantages Amazon doesn’t – local knowledge, personal relationships with customers, and the ability to create memorable in-store experiences,” Ms McCabe said.
She said these distinct advantages can’t be replicated by online giants.
“While we acknowledge the competitive challenge, we’re focused on helping our members leverage their unique strengths, their brick and mortar presence and innovate their business models,” she explained.
Ms McCabe’s advice is to focus on what makes you different.
“Always remember the simplicity of a great retail experience: People buy people first,” she said.
Retail Excellence Ireland will be holding its annual Retail Retreat on 27 May at Lyrath Estate Hotel in Kilkenny, where they will be working with retailers to build upon strategies that create distinctive shopping experiences.
‘Compete where Amazon ain’t’
Retailers have also noticed that consumers are using Amazon as a price setting mechanism.
Neil McDonnell, CEO of business group ISME, said this is of great concern for small companies.
“Potential customers are coming into shops, checking the price of products such as electronics or hair and beauty products, and then they’re looking for cheaper prices online.”
He admits this is tough for businesses to deal with, but said online shopping is here to stay.
“The changes in shopping patterns that came in after the pandemic are permanent now, there is no point in pining for a pre 2020 retail world,” he said.
While competing with the purchasing power of giants like Amazon is almost impossible, Mr McDonnell said the key is to find a niche product, echoing the point that’s it’s all about differentiation.
“It’s about competing where Amazon ain’t,” he said.
“Of course, Amazon’s product range is massive, so that’s far easier said than done,” he added.
Over the last 20 years Amazon has invested €22bn in the country and now employs around 6,500 people here.
Much as world leaders have accepted that for better or worse they’re living in Donald Trump’s world, so too have retailers accepted that they must operate alongside the big spending, fast shipping superstore that is Amazon.
There may always be a king of the jungle – but the king never lives alone.
