Amazon has acquired the Middle Eastern marketplace Souq.
This acquisition will mean that Amazon have a much more prominent presence in the Middle Eastern market. Amazon acquired Souq for around $580 million. This was after a fierce rivalry over it with Emaar’s Noon.com, among others.
Customers of Souq who also have Amazon accounts can now log in at Souq’s site using their Amazon account log in details.
This acquisition is just the most recent in a number of acquisitions Amazon has been doing lately. A little bit earlier, Amazon has also acquired Whole Foods Market for $13.7 billion.
Who are souq.com?
Souq has a large market in the Middle East. It has around 45 million visitors per month and has about 8.5 million products in 31 categories.
With this acquisition, Amazon has gained a much firmer hold on the Middle Eastern market.
The next plan is to integrate the products and services from the two sites, making it easier for visitors to buy and sell without having to switch between the two.
Souq is the leading marketplace in the middle east and as some analysts see it, this acquisition means that Amazon will be in prime position for a developing eCommerce audience.
The already established souq.com means that Amazon now have the largest market share in the region and if anyone can overcome the logistics challenges in the region it is the might of Amazon.
Let us know what you think, surely this is good news for sellers as this will lead to the opening up of a whole new region and more customers.
Let us know down below.