What’s Next for Australian Marketplaces?
The marketplace tipping point is here. With the launch of Catch, the evolution of eBay and of course, Amazon’s arrival to Australia, marketplaces are beginning to make their mark and shift the e-commerce goal posts. We recently hosted a webinar with Power Retail to explain the recent changes in the Australian marketplace landscape and to give some insight into what retailers can expect next.
You can download the webinar here, but in the meantime, here are some quick takeaways from that presentation:
With the recent marketplace boom, there are plenty of options for local marketplaces. Each one comes with a different audience and demographic which is why your marketplace strategy needs to take into account both long term and short terms results. The Catch marketplace is relatively new to the market, offering a seamless shopping experience for consumers. It has 2 million weekly site visitors and an average week sees over 8,000 new customers. It has grown from 27,000 products in July 2017 to 600,000 products. It has over 800 third-party sellers and large brands are also able to take part in the Catch Outlet site to clear excess inventory and stock.
For many retailers, eBay Australia is the one they are most familiar with. In 2016 alone, there were 122 million new listings on the marketplace and it has over 11.3 million unique monthly visitors. In Australia, 80 of the largest 100 Australian retailers are on eBay. The marketplace recently launched eBay Guaranteed Delivery, which can increase your listing visibility and ensures that buyers will get their items in three days or less. It’s an exciting development for both retailers and consumers alike. In terms of what’s next? eBay is working on some exciting pilot programs with ShopBot, the personal shopper and has teamed up with Mashable for shoppable images. Expect to see these kinds of developments hit our shores in the future.
And we can’t talk about the future without talking about the growth of Amazon. Since December, Amazon has grown from over 3,000 sellers to over 10,000 sellers this March. While some Australian retailers are uncertain about Amazon’s impact in Australia, it’s important to understand that the marketplace is willing to play the long game. Fulfilment by Amazon (FBA) has only just launched and we expect to see Amazon Prime by mid-year. This is really where we will start to see things shift and the Amazon momentum pick up. With FBA, Amazon will store, pick, pack and ship your products and provide customer service. Prime is Amazon’s paid membership program which offers free one- or two- day shipping on most items as well as other perks. In the US alone, there were 90 million Prime members in December 2017.
We know that keeping on top the fast pace and ever-changing marketplace landscape in Australia can be difficult, which is why we recommend streamlining processes and ensuring you have a multi-marketplace strategy that takes into account the differing requirements, algorithms and demographics. For more information on how you can prepare for what’s coming next, contact us today.