Amazon Australia

Towards the end of 2017, Amazon opened up local warehouses in Australia in an attempt to expand the company’s reach in the 12th largest consumer market in the world.

While sellers for Amazon in Australia have had to compete with the local bookstores in the region, sellers have seen promising results in what they’re calling the fastest-growing market for Amazon sellers.

Amazon Sellers Have Huge Opportunities in Australia

First, let’s talk about why some people might be hesitant to join Amazon Australia (we’ll get to why you shouldn’t worry about it later on).

Australians are loyal to their local bookstores more than the average global citizen. People here pride themselves on shopping in family-owned stores where they can socialize with and purchase from their neighbors. The cultural significance of buying from friends and family has so far withstood the rise of online markets in the last couple of decades. In 2015, family-owned independent bookstores accounted for 26% of all book sales in the country.

Amazon sells more than just books these days, but Australians have taken that mentality and applied it to most shopping experiences. Australians would rather get their shopping done in person where they can physically see and feel what they are buying.

The convenience of shopping online may seem like an obvious boon for those who are unfamiliar with the nation’s commercial landscape, but through the first few months, it appears as though Amazon’s presence isn’t making much of an impact yet.

According to a recent report from The Daily Telegraph, 90% of Australian customers said they’d prefer to make purchases in person rather than online during the holiday season. Amazon arrived in Australia just before the holiday rush with hopes of raking in profits during the most shopping-friendly time of the year, but it was to little avail.

“People are telling us they don’t feel it is Christmas until they have been into the store,” David Jones deputy store manager Courtney Owings said yesterday.

A survey of more than 1100 people commissioned by the up-market department store found nine out of 10 people were still doing their Christmas shopping in person in a shop.

This mentality runs against the grain of the way shopping is done in America, where just over half of all holiday sales were made on the internet according to multiple reports. Sellers who are looking to make an impact in Australia will have to re-think their business model to fit the different mentality.

Amazon’s Efforts for Sellers Going into Australia

But Amazon certainly isn’t struggling due to a lack of convenience. The company’s arrival in Australia brought a number of local warehouses for the company and for sellers to store goods, allowing for fast delivery that can take as little as a single day to certain Australian locations. That’s a better deal than some stateside customers get.

Amazon Prime is expected to arrive in Australia later this year, where the company should pick up some more traction. Prime is one of Amazon’s most attractive features in the states, and some of Australia’s customers may start using more of Amazon’s features once it gets the full package. Sellers might be smart to get a jump start and get their businesses set up in Australia before Prime launches so they’re ready for a potential boom in sales growth when it drops. That’s not to mention the fact that Alexa is expected to arrive in Australia very soon as well.Amazon Australia

As of right now, Reuters reports that third party sellers are responsible for 90% of products that appear on Amazon Australia, an abnormally high ratio compared to Amazon’s distribution in the states. Online sellers don’t need to challenge Amazon itself very much at the moment, which allows them to be more competitive. That alone is a pretty good business opportunity for sellers regardless of whether or not the rest of the features have arrived yet. Sellers can build customer loyalty among a completely new crop of buyers by getting in the game early.

New Media Confirms Amazon Sellers in Australia Have Great Opportunities

The New Daily reports that a number of sellers have already started to open up shop on Amazon, and the results have been pretty promising.

“The Australian market seemed very excited to welcome Amazon,” he said.

“It is growing strongly despite how early it is. Amazon Australia passed the marketplace in Brazil in size in January.”

One Amazon seller, which also sells on the eBay.com.au marketplace, told The New Daily that its eBay sales had “dropped dramatically”, proportionate to an increase in their Amazon sales.

This could be the first sign of customers turning away from competing retailers in favor of the new market entrant.

It’s looking like Australia could be a promising new market for Amazon and its sellers. Although there are going to be some hoops to jump through, Amazon has found a way in the past and has the funds needed to adjust and make upgrades as necessary to ensure that Amazon’s businesses can thrive overseas.


This article was researched and written by Anders Jorstad.  Anders is a content creator for Rosenbaum Famularo, P.C., the law firm behind AmazonSellersLawyer.com.

Anders will be earning his degree in journalism from Hofstra in the fall and has five years of professional journalism experience. He has written for numerous online and print publications including SB Nation and The Hofstra Chronicle.