It’s no secret that Amazon’s CEO Jeff Bezos is expanding his Amazon empire into Australia. It’s no longer a question of “if” but “when” Amazon is coming to Australia.
According to a recent Australian Financial Review (AFR) report, Amazon is planning to launch in Australia. This includes setting up physical warehouses which will mainly be located in regional areas.
To avid Amazon shoppers, this will be a welcomed relief from high shipping fees and Amazon products not available for shipping to Australia.
For Amazon FBA Sellers, the news of being able to sell products online in Australia is a potential gold mine. This is the chance to cash-in on the massive disruption to online retail that Amazon is creating globally.
It seems Amazon has seen the Australian retail market is ripe with opportunities. What’s good for Amazon translates into being exceptionally good for Amazon merchants who choose to sell products on the Amazon platform.
With a population of only 24.6 million why is Amazon launching in Australia? The answer is that it potentially represents a highly attractive market for Amazon.
For starters, more than 90% of Australia’s population has internet access. According to Google’s Consumer Barometer, Australians are highly connected, with an average of 3.1 devices per person which is one of the highest rates worldwide.
Adding to that detail, Nielsen’s annual Australian Connected Consumers Report found nearly ALL online Australians have used the internet to buy products online; and around one-in-four purchase items online at least weekly.
As further validation…studies show that approximately 30% of Australian consumers spend more time shopping online than in a physical store which means that online shopping is already the norm.
Even more compelling stats show that Australian consumers spend roughly A$5,857 per person annually on e-commerce sites. Not only is that up by 45% since 2013, but to provide some perspective: American consumers only spent an average of A$2,348 online in 2015.
Based on these compelling numbers only insiders know what’s taking so long for Amazon Australia to launch.
After all, the eCommerce giant has already expanded from the U.S. to Amazon Canada, Amazon Mexico, Amazon UK, Amazon Germany, Amazon France, Amazon Italy, Amazon Spain, Amazon Japan, Amazon China and Amazon India.
Will Amazon keep its 2017 rollout plan for launching in Australia? Only time will tell.
Reports say that big box stores such as Woolworths, Wesfarmers, Myer, RCG and JB Hi-Fi are not passively waiting for Amazon to launch in Australia. Their plan of action – building more consumer loyalty by enhancing the customer’s shopping experience. Such strategies may keep the heads of these Australian retailers above water once the Amazon Australia launch is in full swing.
So what’s the likely strategy for Amazon to gain momentum with Australian consumers?
Sell cheaper and earn less profit margin. Amazon is no stranger to operating with little to no profit margins as a means of reinvesting revenue into expansion. Reports that Amazon plans to drop product prices by as much as 30% to win over consumers and give them more bang for their Australian buck. This alone has Australian retailers nervous as their profits margins could potentially drop by 20%.
Build Amazon Australia Fulfillment Centres. In order to accommodate the Amazon Prime membership program for free shipping; order processing and product-filled inventory warehouses with those famous Amazon robots are a must. Accustomed to high shipping rates, this could be the strategy where the winner takes all with Australia Consumers.
Offer more products and brand names. Australian Amazon shoppers are nothing new. Nielsen Omnibus research showed that the Amazon U.S. site converts almost one in two Amazon Australian shoppers (49%) into sales.
Offering a full spectrum of items in categories such as electronic goods, books, clothing and shoes in local fulfillment centres established around the country is likely to prove irresistible to Australian shoppers on Amazon.
Express Delivery. Part of Amazon launching in Australia in a big way includes offering Amazon Fresh which requires Prime Now, a same day delivery service. Initially, it is likely food would be imported by Amazon until agreements are made with local suppliers. This would evolve into physical stores for Amazon Fresh in Australia.
In a January 2017 Nielsen survey, 75% of Australians aged 18 years and older said they are interested in Amazon Australia and 56% are likely to purchase from the Amazon Australian website.
Nielsen’s research also showed Amazon already has a high level of engagement with Australian shoppers. Name recognition and established credibility laid the groundwork, but expanding product availability and recognized brand names at discounted prices along with Amazon Prime services will inspire Australians to put out the welcome mat.
For all of the Amazon Sellers in Australia already selling on Amazon.com or Amazon.co.uk; it’s time to prepare for expansion right in your backyard. What are the best products to sell on Amazon Australia? What are you currently selling on Amazon that are likely to appeal to Amazon customers in Australia? Take time to review the private label products sold on Amazon and look for Australia-specific products to sell on Amazon.
Like entering any new marketplace, craft your strategies early before Amazon launches in Australia. Below are suggested guidelines for selling products on Amazon Australia:
Broaden your Amazon product research to other popular eCommerce sites in Australia. Be sure to join online Amazon seller communities in Australia as they may be a rich source of valuable product research.
Once you’re launched your private label products on the Amazon Australia platform make a budget that incorporates the Amazon seller tools for your products which may include Money Off or Buy One Get One (BOGO). Also, plan to run keyword-targeted Amazon Sponsored Product pay-per-click ads as soon as you qualify.
Citigroup’s head of research, Craig Woolford, believes Amazon Australia could capture sales of at least $4 billion within five years selling products in Australia, representing 14% of all online spending. Are you ready to earn a piece of that pie?
Preparing which products to sell on Amazon Australia requires that you keep both the shopper’s and the Seller’s perspectives in mind. Use each one to fully guide efforts in building YOUR next Amazon marketplace empire.
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Our course teaches you everything you need to know about how to start selling products on Amazon when it arrives in Australia. In it Adam Hudson takes you inside his own successful Amazon FBA private label business so you can learn everything you need to know about how to selling a product on Amazon Australia.
Adam will also answer common questions like…what is Amazon Prime, what are the most profitable products to sell on Amazon, what Amazon seller tools you need, how to find Amazon reviewers for your products, how to sell on Amazon USA, when is Amazon launching in Australia, how to open an Amazon UK seller account, how to prepare an Amazon business for sale …and many other proven strategies for building a successful Amazon product importing business.
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