Have you heard that online retail giant Amazon is now ready to grab the Australian market by 2018? They have launched their new Australian website offering millions of products of several renowned brands. This business giant is already dominating the US market.
43% of the online revenue is in their pocket and now to capture the Australian market, they are going to offer more items at the most reasonable rate with fastest delivery time.
In short, they are striving to seize the online retail market of this advanced nation.
What does it mean? That can be spell danger for Australian E-commerce websites and retailers.
First of all, Amazon offers millions of products which, is divided into 30 different categories which include clothing, electronic apparatus, sports equipment and so on. Along with that, the one-day delivery, as well as free delivery services on some products, is an added advantage. A Nielsen Survey has already declared that 75% of adult or 18+ Australians are very much interested in this leading brand while 45% is ready to take paid membership for other benefits and to get faster delivery services.
Australian customers can order things from the American site too, but they have to wait for a longer time due to international shipping procedure. Amazon has already solved this problem by opening their new website for Australian consumers.
The local bricks and mortar companies like Rebel Sports, Harvey Norman, JB Hifi, Kmart, etc., can take it as a severe threat because of people’s growing interest. Myer has already predicted that these local companies which offer similar products can see over 56% drop in their profit in next five years. According to a report, Amazon’s future strategy is to seise 30% of the local revenues while the former CEO of the Wesfarmers, Richard Goyder explicitly stated that they are not at all threatened by Amazon or any other company.
According to the report, Amazon has already listed different new stuff from several big names. It even includes heaters, vacuum cleaners etc. It is still not confirmed that how aggressively they are going to attack the local retailers but the listed items have already revealed a lot about it.
The Australian consumers can now purchase electric blankets to smartwatches from the best-selling big brands like Huawei, Dyson etc.
Amazon Prime Now is their new secret weapon to apprehend the Australian market. Subscription of Prime Now offers 2 hours delivery on specific products. Along with free shipping options, the varieties of perks are available such as music, streaming video, books etc.
Various local bricks & mortar companies offer similar products. However, the same favourable offers are still not provided by them. Amazon is not going to leave this opportunity which can be utterly beneficial for them. It will help them to win the market share effortlessly.
Amazon Fresh will be launched in Australia for grocery delivery service. Online shopping brands like Coles or Woolworths have to face a direct competition for that.
On the other hand, Australian farmers will be hugely benefitted out of it.
The producers and growers are already struggling to get a good return for supermarket goods. In that case, Amazon is going to give a profitable discount to them. The consumers should be aware of another incredible offer which is known as Amazon Go. However, it is on hold until the viability is not confirmed.
Local Australian E-commerce giants should immediately find out a new way and brilliant marketing technique to compete with this world’s largest online e-commerce platform. This leading brand is all set to grab the profitability of the Australian market. According to a report, the consumers of Australian market are going to be the witness of the most prominent change in online shopping industry in recent few years. Moreover, to combat this solid marketing strategy, the local bricks & mortar companies have to find out a stable ground as soon as possible.