Dedicated Irish site means local firms must learn how to compete with Amazon head on, Lansil Global chief tells Fearghal O’Connor
‘Outside of Ireland. If you own an online brand, you have to be on Amazon.’ Above, Amazon’s warehouse in Baldonnel
‘In Ireland at the moment it takes four or five days to get a delivery from a lot of websites. But in the UK it usually takes two or at most, three days.’ Above, an Amazon warehouse in Kegworth, UK. Photo: Chris Ratcliffe/Bloomberg
The opening of a dedicated Irish website by e-commerce giant Amazon will force a transformation of Ireland’s logistics and online retail sectors, a Cork-born logistics entrepreneur has said.
Alan Coughlan, founder and CEO of Lansil Global, is currently building warehouses in the US in order to cut his delivery times to allow his clients keep pace with Amazon. He has built a €40m business supplying e-commerce websites with Chinese products
Mr Coughlan, now based in Dubai, started the firm 10 years ago at the age of 27 after moving from Cobh, Co Cork, to China. He now supplies everything from home and garden furniture to cosmetics, toys, apparel and more to European and American online retailers who operate on Facebook, Amazon, Shopify and other e-commerce platforms.
‘Outside of Ireland. If you own an online brand, you have to be on Amazon.’ Above, Amazon’s warehouse in Baldonnel
The third-party logistics provider now has extensive Chinese operations and this year Lansil hit €40m (£34m) in annual revenue. Mr Coughlan hopes to reach €100m (£85m) in the coming years by expanding his warehouse network across the US and eventually into Europe, with the Netherlands a likely location.
A key motivation for the warehouse expansion is to try to match as much as possible the delivery speed of Amazon. By opening multiple US warehouses Lansil aims to reduce delivery times from a week down to just three days on average. This, he said, has not yet been a big factor for retailers or logistics firms in the Irish market where Amazon orders are originating from the retail giant’s platforms in other countries but all of that is about to change, he warned.
‘In Ireland at the moment it takes four or five days to get a delivery from a lot of websites. But in the UK it usually takes two or at most, three days.’ Above, an Amazon warehouse in Kegworth, UK. Photo: Chris Ratcliffe/Bloomberg
“When Amazon starts its Irish service then two-day delivery times are going to become essential across the industry,” he said.
Amazon.ie is set to launch in 2025, meaning faster delivery times for its Irish customers.
“I think it is fantastic and long overdue. It means everybody else will have to step up their game or Amazon will take all of their inventory.”
Mr Coughlan believes Amazon’s market dominance will force other companies to drastically improve delivery speeds.
“In Ireland at the moment it takes four or five days to get a delivery from a lot of websites. But in the UK it usually takes two or, at most, three days. That is because of the influence of Amazon.”
