7 Reasons Why Businesses Should Get on Amazon Australia in 2021
1. Amazon is one of the most trusted e-commerce brands in the world
Use Amazon's brand equity to boost your sales and gain consumer trust.
US surveys have shown that Amazon is trusted across all age demographic segments.
"Amazon provides a helping hand to smaller brands and allows you to compete with larger more established brands."
"Amazon ranked #1 in the 2019 American Customer Satisfaction Index Internet Retail Category and has been ranked in the top 10 for the past 11 years. In the U.K., the Institute of Customer Service named Amazon as the company with the best customer service score for the past decade." (Source Amazon Corporate website)
2. 15,000 small and medium-sized businesses successfully sold over USD $1m on Amazon in 2019
Amazon supports SME business as part of its platform,
Amazon announced that more than 15,000 small and medium-sized businesses selling in Amazon’s stores in the U.S. surpassed $1 million in sales in 2019. Additionally, third-party sellers sold more than 700 million items that shipped with Prime Free One-Day Delivery or faster in the U.S. in 2019.
3. 40% of all shopping searches start on Amazon or eBay in Australia
You are placing your products in front of consumers with buying intent. In the US market where Amazon is more established this increased to over 70% in some categories.
Is this the starving crowd your business is looking for?
4. Amazon continues to invest heavily in Australian distribution
A new warehouse was launched in Brisbane in 2020 with further capacity being built. There are two new warehouses underway in Melbourne and Sydney bringing the total number to 6.
Amazon distribution provides small businesses with world-leading logistics capabilities at rates that are usually lower than competing 3PL providers. Businesses can take advantage of this to fulfil non-Amazon orders using Amazon's multi-channel fulfilment (MCF) service.
Melbourne's new warehouse covering 37,000 square metres, almost double the size of the Melbourne Cricket Ground. - The facility will have enough capacity to house up to six million items.
The giant new Sydney warehouse currently under construction will house 11 million items with the ability to sort 25,000 packages per hour. At 200,000 square metres across four levels, it is the largest warehouse ever built in Australia.
5. eCommerce sales have rocketed in Australia
The pandemic has shifted the landscape with eCommerce spending in 2020 exceeding all growth forecasts.
Prior to the pandemic eCommerce sales were projected to grow to AUD $37.2 billion in 2020 with a compound annual growth rate (CAGR 2020 -2024) of 5.4% and a projected market volume of AUD $46 billion (Source Statista)
Online spending surged by 57 per cent in 2020, when Australian consumers spent a record AUD $50.5 billion online, compared with $27.5 billion in 2018.
Amazon’s total e-commerce revenue in Australia doubled to $1.2 billion in the 12 months ending December 2020, and gross sales are estimated to have reached $2.6 billion, according to the ACCC. (Source; AFR)
Amazon has reached $2.6 billion in sales, 3 years after the Australian launch in late 2017 and remains on a strong growth trajectory.
6. Amazon Prime
Amazon Prime is a paid subscription service offered by Amazon. In the US Prime members on average spend 133% per year than non-prime customers.
Prime benefits including access to Ebooks, Prime TV, Digitial Music and fast & free shipping.
With these results, it is no surprise that Amazon is investing heavily in Prime with streaming of live sport likely to increase customers in Australia. In the US Prime TV streams Thursday night NFL (Grid Iron) Games and the UK streams EPL football. Globally there are estimated to be 150 million Prime subscribers with 112 million in the USA.
Some rumours suggested the NRL may be coming to Prime in Australia.
During 2020 Amazon Prime TV subscribers grew by 190.2% to 3,293,000. (Source: Roy Morgan)
Fast & Free Shipping for 3.3m households via Amazon Prime, an incredibly convenient way to shop"
7. Easy Access to New Zealand Consumers
Amazon announced in July 2021 that it is now officially offering its services to customers in New Zealand
This opens up an additional marketplace of nearly 1.7M Households at no extra cost or effort for Amazon Sellers on the Australian Market Place.
Shipping rates will start at NZ$3.20 while some major centres have expedited delivery for around NZ$7.49. Up until now Kiwi's had to use the US Marketplace. (Amazon is also in talks with the All Black's in respect of a shirt sponsorship deal). This clearly demonstrates Amazon's intent in New Zealand.
Clover Global Pty Ltd is an Australian based consulting agency that is primarily focused on helping established Australian small and medium-sized businesses be successful on Amazon. We are Amazon sellers ourselves!
Our services include expert advice on set-up, listing and growing sales on Amazon marketplaces.
Find out more about our Amazon Consulting Services or Get In Touch with us today to see how we can work together to successfully launch your products on Amazon.
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