Around the year 2008, Amazon and Otto had comparable revenues in online retail in Germany (Otto’s home market). Since then, Amazon has left its German and European competitors far behind: in 2023, 17 percent of the total online retail revenue in Germany was generated through Amazon.de’s direct sales, and an additional 43 percent through the Amazon.de Marketplace. This means that 60% (previous year: 56%) of total online revenue in Germany is generated by the e-commerce giant. (Source: Statista)
Visually, this dominance of Amazon in Germany (and similarly in other countries) is represented as follows; these data are also from Statista. The graphic shows the ranking of the top 10 B2C online shops for physical goods by e-commerce revenue in Germany in 2023 (these figures refer only to the direct sales of amazon.de, otto.de, etc. – without including marketplace revenue):
Amazon is now widely used as a search engine for shopping and product searches. And anyone traveling across the country frequently sees Amazon’s massive logistics centers: its dominance is also visible in the physical world.
Just a few years ago, I published a clear statement on my blog, committing to avoiding the “octopus” Amazon and instead supporting German or at least European players in the digital industry: “I firmly believe we need European champions, which is why I always try to order from OTTO first when shopping online.” But in the very next sentence of the same blog post, I admitted that this resolution can only be maintained with great patience at times: “However, the selection there is smaller, and in terms of ease of use and processing, the traditional German retail group visibly lags behind the market leader. It’s sometimes incredibly frustrating.”
And this brings us right to the heart of the issue. It’s well-known that European players in the digital industry face several significant disadvantages: from more difficult access to growth capital to the challenges of scaling in a legally and linguistically fragmented European market. As a result, U.S. players often win the race in oligopolistic-to-monopolistic markets.
Recently, Otto has been making negative headlines. As reported in the Handelsblatt: “The extent of the crisis can now be quantified: Between April and August of this year, 1,178 seller accounts were deleted from Otto.de, according to an analysis by marketplace expert Mark Steier. (…) And then there’s the issue with the technology. ‘The technical competence is roughly equivalent to the year the company was founded,’ joked the top manager of a technical service provider about the retail group, which celebrated its 75th anniversary this year. The communication is ‘absolutely arrogant’ and in no way resembles a partnership.”
I haven’t completely turned my back on Otto. For instance, two years ago, I made a larger purchase (specifically, a dryer), and the transaction went smoothly. However, I now make the majority of my online purchases through Amazon.
The convenience offered by Amazon is simply too tempting: a product selection that leaves nothing to be desired, helpful reviews, fast delivery (including same-day delivery), reliable tracking of shipments, wish lists that can easily be shared with friends, and a return policy that works smoothly without the hassle of Kafkaesque return processes.
Now, convenience is, of course, not a particularly compelling argument. And if I now order much more from Amazon than I could have imagined five years ago, it’s not simply because I’ve become lazier. Or because family life has become so hectic that I just take the path of least resistance.
It’s not that simple. I live with my family (with two 6-year-olds) without a car, and we manage just fine. In many cases, having a car would be much more convenient and time-efficient. So, it’s not just about convenience.
The difference between giving up the car and shopping on Amazon lies in the following: For ethical reasons, I believe it’s important to minimize my ecological footprint and to model a lifestyle for my community and my children that aligns with these ethical values. One could debate whether this personal sacrifice will stop climate change or not (objectively: probably not), but giving up the car is undeniably a contribution—it reduces my ecological footprint.
Establishing such an indisputable line of reasoning when it comes to using Amazon becomes significantly more challenging. What values are at play when deciding between Amazon and Otto? And can a strong argument be made linking such a value to the purchasing decision for one eCommerce provider over another?
First, we can assume that I would be buying the same product on both platforms (e.g., a printer cartridge or a book). So, it’s not about the question of ethically produced goods.
But what about the working conditions for Amazon’s employees in Germany? In my perception, Amazon may not be a top employer, but I also don’t view the company as an exploitative operation.
And what about the profits that largely flow back to the USA instead of staying in Germany? That’s certainly a valid argument; however, in today’s interconnected world, it’s also unrealistic to expect that a “Buy German” approach could be consistently maintained.
What is undeniably problematic, however, is that Amazon is evolving into a quasi-monopoly (60% market share!). While disadvantages for customers or marketplace participants are not currently evident, the risk is certainly there. That said, I find it difficult to base my purchasing decisions on economic policy or antitrust considerations.
Yes, we as consumers have a responsibility. But the answers to ethical questions surrounding purchasing decisions are not always clear-cut, as the above reflections suggest. And sometimes they aren’t convincing enough to break established routines. Nonetheless, the goal must be to act in a value-driven way and to stay consistent. Lastly, I should mention that earlier this year, I deactivated my Facebook account because I find the corporate philosophy of Meta (cf. Frances Haugen) highly problematic. That decision was not difficult for me—it was clear-cut.
