Amazon Expands in Australia: What It Means for Retailers

April 26, 2017

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 will be the impact of Amazon’s Australian expansion.

Amazon called for local retailers to join its global marketplace last week, 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

Joining Amazon actually means finally having access to the array of opportunities the marketplace giant offers. 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 as 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 shopping is becoming more of a cultural habit than it used to be. However retailers must keep in mind that it is not guaranteed that the Australian market will act like the US market, where 52% of all product searches now start on Amazon (beating Google). Indeed the Australian market seems similar to the Canadian market, with Amazon making 2.4 billion CAD in a total retail market of around 25 billion CAD.

Interesting Competition

Amazon could potentially lift struggling businesses and offer a breath of fresh air to retailers in need of extra capacity, resources and a larger audience. This also opens the door to 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. Retailers fearing this arrival might need to adapt their core business model and their global standard of operation to remain competitive, and work on building better customer loyalty. Retailers with robust and efficient supply chains must be able to compete with Amazon, but can also ally with the marketplace to make the most of the opportunities.

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