Amazon Expands in Australia: What it Means for Retailers


Marketplaces Jennifer Hakim By Jennifer Hakim

With the huge news of Amazon finally announcing its upcoming launch in Australia, the question on every retailer’s lips is now to figure out what the impact of Amazon’s Australian expansion will be.

Amazon called for local retailers to join its global marketplace earlier in May, confirming the roll out of its full retail offering down under for the next few years. But what does it actually mean for retailers? Fear not, we are here to answer your questions:

Expanding Opportunities

With only 11% of retailers thinking Amazon’s launch in Australia presents opportunities for them, what does this new arrival actually entail for retailers? Jumping on the Amazon wagon means finally having access to the array of opportunities the marketplace giant offers. Indeed, joining Amazon means attracting new customers through the huge audience of the marketplace, and being first to market your products the ‘Amazon way’: with attractive low prices, vast selection and fast delivery combined. It is reported that Amazon is currently looking for a large distribution and fulfilment centre in Australia, a sign it will offer the best of its services. Make the most of Amazon’s Fulfilment Options, and services such Amazon MarketPlace, Amazon Prime Now and eventually Amazon Pantry and Amazon Fresh for a bigger audience and optimum customer service. This is the opportunity to offer a compelling customer experience, and focus on customer centricity.

Growing Acceptance of Online Shopping

Amazon’s Australian arrival means the e-commerce market is ready for expansion, and that online showing is becoming more of a cultural habit than it used to.

Interesting Competition

Amazon could potentially lift struggling businesses and offer a breath of fresh air to retailers in need of capacities, resources and a larger audience. This also opens to the door to a new interesting competition, as brands offering unique products might be well placed to compete with Amazon. Amazon’s arrival only underlines the need to continually improve operations, regardless of the competition, and can only lead to a better quality of service and product for customers.

With 56% Australian adults telling Nielsen they will buy from Amazon when they launch, retailers cannot take the risk to miss such an opportunity. But what does it actually take to be successful on Amazon? It’s not just about listing: as the competition gets tougher, retailers need optimisation and technologies such as Repricers, data & insights to help them continue to beat the competition. Invest in technology and an optimum retail infrastructure with future growth in mind is a key for success through Amazon.

Do you have questions about Amazon expanding in Australia? Contact our team for more information.

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