Amazon’s expansion into the Australian market is expected to launch by the end of 2018. Three-in-five Australian shoppers are looking forward to buying a wide range of products including electronics, books, clothes and groceries from the (soon to be local) online retail powerhouse.
Brand awareness of an Australian Amazon site has been building, with nearly half (47%) of consumers now aware of the impending launch, growing by nine percentage points over two months from January to March. Top of the digital shopping list is Electronics, Books and Clothes with 60%, 54% and 46% consumers planning to purchase the categories from Amazon respectively.
What does Amazon’s arrival mean for local e-commerce retailers? We expect that Amazon Australia will grow the eCommerce channel overall, increasing the number of purchases Australian consumers make online. When it comes to its products and services, Amazon will be a big market disrupter to the online retail landscape.
Building on its existing shopper base (18% currently shop the Amazon international site), Amazon is poised for growth (to stated purchase intent of 58% once launched) by capitalizing on the three key drivers of online purchasing:
Price – Amazon is perceived as great value and consumers expect to benefit from cheaper prices online than in-store.
Range – Amazon is associated with a wide range of products and brands, only eBay is perceived as having a wider range of products. Amazon will become a platform for local manufacturers to reach more Australian shoppers.
Accessibility – Amazon’s proposed distribution centres will break barriers around delivery costs and time, same day delivery is expected within metro areas. Local presence also ensures a smooth and easy return process for Australian buyers.
Now is the time for local eCommerce retailers to understand and plan for the impact of Amazon Australia to their categories. It’s an opportunity to optimize their online offerings, provide customers a great in-store experience and capitalize on the consumer trust they currently enjoy from the length of time they have been operating in the market.