The Amazon opportunity for Aussie online retailers

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The Amazon opportunity for Aussie online retailers

Ninety-five percent expect to be selling through Amazon Australia by the end of 2018, according to survey.

This week’s launch of Amazon Australia is likely to have a significant impact on local retailers, but it seems many view it as an opportunity too.

A new survey suggests 95 percent of Australian online retailers expect to be selling through Amazon Australia by the end of 2018.

The survey was conducted for ecommerce provider Neto just before Amazon Australia officially launched.

Neto does have an axe to grind because its retail management platform does integrate with Amazon Australia. In fact, some of the first local retailers on Amazon Australia are Neto customers. They include Stuffed with Plush Toys and Cosmetic Capital.

The selling opportunity

For those retailers less confident about their prospects, our Amazon survival guide offers some helpful tips – one of which includes to consider using Amazon as a selling platform. And indeed, of the more than 200 retailers surveyed by Neto, 39 percent said they intended to sell in as many marketplaces as possible.

Eighteen percent predicted that more than three-quarters of their revenue will come from Amazon and other marketplaces during 2018. Fifty percent expect to see between five and 25 percent of sales through those channels.

“Conservatively, we’re hoping that Amazon will represent 15 percent of orders processed in 2018,” said Cosmetic Capital managing director Danny Marcuson.

“This comes from our experience with other marketplaces. Anything more will be a great bonus.”

Neto founder and CEO Ryan Murtagh said: “I’ve been consistent in my view that Amazon and online marketplaces are a strategic opportunity for retailers.

“The marketing machine that is Amazon and the quality of customer experience that Australian online shoppers will now demand and expect, is a great outcome for every retailer selling online.

“There is a huge amount of growth coming for Australian eCommerce and every retailer savvy enough to embrace the power of online and marketplaces such as Amazon will get a share of that growth.”

A success story

Australia-based parental control router vendor KoalaSafe has been selling through Amazon Marketplace since 2015.

“Small businesses and retailers across the country should be excited about Amazon launching in Australia,” said KoalaSafe CTO and founder Adam Mills.

“While it can be a challenge to ensure potential customers find your website, Amazon already has hundreds of millions of customers around the world searching for new products. The visibility and access Amazon provides is an enormous opportunity for all businesses.”

Amazon Marketplace provides Australian businesses with listing tools, payment processing and credit card fraud protection, promotional features, and reports and analytics.

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