Amazon to Acquire Souq.com, Gaining Middle East Footprint
April 11, 2017
Amazon has just extended its international presence by acquiring Souq.com for an estimated $700 million. Dubai-based Souq.com was described by Amazon as the largest online retail platform in the Middle East with more than 8.4 million products for sale, and a reported 45 million visits per month. Of all Souq.com visitors and users, approximately 45% make purchases at least once a month. Although Amazon’s international efforts to break into the Far Eastern e-commerce market through China flopped, with the company controlling less than 1% of B2C e-commerce sales activity since 2004, the company expects to hold their own in the Middle East. Amazon has also turned its attention to India, as well as Southeast Asia by way of Singapore. Alibaba will be their largest competitor having won in China, as well as buying and heavily investing in local platforms in order to contend with Amazon in both India and Southeast Asia.