Amazon puts on hold its expansion plans in Spain

September 20, 2022 by
Frank Calviño

Amazon has decided to delay its planned new logistics warehouse in Spain until, at least, 2024. 

The e-commerce titan was planning to build a new logistic warehouse with a blueprint size of 150,000 square meters. 

🔥Do you want to know more about international commerce and e-commerce, and also get all the tips and news that might give your company an edge? Subscribe to Cross-Border Magazine and get your digital copy now for free!🔥

According to Amazon itself, the decision was taken based on two factors: a considerable decrease in consumer demand and the rising inflation in Spain. But the company is also canceling other expansion plans in different European nations like Germany, Poland, and Austria, where multiple logistic centers and new warehouses were put on hold. 

Amazon Post-Covid Growth Effect 

Amazon seems to be suffering from another acute case of the Post-Covid Growth Effect, having expanded significantly during the Covid crisis to cope with the rising online demand, but facing now the high operational costs derived from an expansion without the same sales volume. 

This situation previously hit other online companies from the e-commerce industry like Shopify, which had to layoff 10% of its staff, also due to a massive overgrown during the Covid Crisis, and then the later natural reduction of income due to the rekindling of physical stores activities. 

In Amazon's case, the company had to increase its warehouse network in the last couple of years to deal with the increase in demand during the Covid Crisis, but now this is costing Amazon close to 5.6 billion euros in Q2 this year, of wasted money due to excess capacity, lost productivity and inflation. 
For the time being, Amazon has halted all possible new logistic and warehouse facilities programmed in the cities of Murcia, Zaragoza, Vitoria, San Sebastián, Asturias, Vigo, Seville, Girona, and Reus (Tarragona).

H&M will charge customers for online returns in the UK
H&M will charge customers for online returns in the UK starting in September. The Swedish company will begin charging £1.99 (€2.29) for returns on online orders in the UK. In-store...
September 26, 2023
Microsoft 365 Chat will introduce the new AI Copilot System for Windows
Microsoft has announced the launch of Microsoft 365 Chat, an AI tool that will be an integral part of the new Microsoft Copilot system that is already being integrated into...
September 25, 2023
TikTok's Black Friday: a challenge to Amazon!
TikTok's Black Friday program has been announced. The brand keeps pushing to dominate social media e-commerce and this sale is a direct challenge to Amazon. The social network is planning...
September 21, 2023
Top crossmenu

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.