“Amazon Egypt”…Does it add value to the local market and the consumer, or does it overthrow small traders?

The American e-commerce company “Amazon” officially launched, yesterday, Wednesday, its new website in “Amazon Egypt”, which will be an alternative to the “Souq.com” that it acquired years ago.

Also this week, the Egyptian Prime Minister, Mostafa Madbouly, witnessed the opening of the company’s first warehouse in Africa, on an area of ​​28,000 square meters, which comes as part of Amazon’s planned investments in Egypt.
The company said that it will display millions of high-quality international brands through its new website, and pledged to provide a unique and competitive experience for Egyptian consumers, including competitive prices and fast and reliable delivery.

According to Egyptian media reports, Amazon’s investments in Egypt now, despite its recent history, amount to one billion pounds, and its choice of the state as the center of its business in the region undoubtedly reflects the growing confidence in the Egyptian market and the elements of expansion and spread through it.

However, while many welcomed the economically important step, which gives young people new job opportunities, others expressed fear that the dominance of “Amazon” could lead to the overthrow of small business owners, in a scene that was demonstrated through social media platforms.

Some have cited the e-commerce giant’s superior financial capabilities, warning that it will cause the closure of many stores, given its ability to offer significantly reduced prices to customers with excellent customer service.

They pointed out that competition with a company of this size will be almost impossible for small investors, citing the pressures on small traditional stores in the United States and Europe as a result of the spread of e-commerce concepts.

Others of economic opinion said that Amazon’s investments in the Egyptian market will not be of real benefit to the country, as it relies on foreign products, and thus consumes foreign currencies in Egypt in favor of boosting production in other countries.

Of course, there were those who warned about the possibility and ability of “Amazon” to master monopolistic practices, which some small American companies complained about.

However, there were a number of benefits for Amazon’s entry into the Egyptian market, and how it would constitute exceptional support for the consumer in the first place, despite their recognition that it would affect other merchants…but it is the nature of the free market, so why not.

Also, many celebrated Amazon’s announcement of its need to fill new jobs with the opening of its new warehouse, not to mention the jobs that will be added in other complementary fields, for example, the company’s e-commerce activity will constitute an additional demand for delivery business.

According to the “Masrawy” website, the company provides more than 3,000 jobs, and owns more than 15 delivery stations nationwide.

The website quoted Omar Al-Munir, CEO of Sigmavit for clothing technology, and founder of the Sigmavit platform for selling sports products online, as saying that the influence of “Amazon” will not be evident before the end of its first year in the Egyptian market.
While the founder and former CEO of the “Nafsak” e-commerce website, Sherif Nassar, said that the company’s success in implementing its global controls in Egypt will benefit the entire Egyptian market.

But Al-Munir warned that the experience of “Amazon” in the markets of the neighboring region, such as Saudi Arabia and the UAE, did not match what it was doing in America, where it could not compete with e-merchants in the UAE, wondering if it was able to compete with traditional merchants in Egypt.

In the same context, a report by the “Al-Ahram” portal stated that “Amazon’s” expansions in Egypt reflect the attractiveness of its market and the capabilities it possesses, increasing competitiveness in the field of e-commerce, and creating more job opportunities.

The report stressed the importance of Egypt’s expansion in the field of e-commerce, as it is one of the main trends towards the future economy, according to what economists and investment experts confirmed.