Amazon was officially launched in Australia in December 2017, with Amazon Prime launching midway through this year offering two-day delivery, streaming, gaming and reading services.
In the past year, there have been a slew of articles warning retailers about the impact of the Amazon effect, disrupting both online and physical retail with its status as global retail giant. This isn’t a paid advertorial for Amazon, but we’re all about seeing the glass as half full!
According to Amazon Australia, the number of products sold sat at around 60 million across 25 categories by September 2018 and is set to only increase in its presence.
Are Australian retailers missing the Amazon opportunity in fear of the Amazon effect? Russell Zimmerman from Australian Retailers’ Association voiced early on that Amazon represented an opportunity to Australian SMEs who were able to leverage the platform to gain greater exposure to the market.
What we know about disruption from past occurrences is that disruptors drive innovation across the board, which can only be good for the industry, right? As was seen with the impact of Uber, Uber Eats and Air BnB, these large disruptors offered the opportunity for businesses to re-evaluate their service offerings and how they communicated these to their consumers. Technology is ever evolving and disrupting different markets and Amazon could represent a great opportunity to your business.
So what can you learn from the Amazon roll-out in Australia and leverage the Amazon opportunity? Here are our predictions for what the retail giant can do for the sector:
#1 – Build your brand without the investment
One of the biggest challenges to start-ups and small businesses is getting exposure for your brand. Businesses can spend thousands of dollars in building traffic and marketing their products before they make any traction. Amazon offers the opportunity to build brand awareness with your target market without the great investment into marketing and brand.
#2 – Test your products
How many companies fail because they just don’t have the right product or audience? You can avoid the high investment into the brand and reduce risk by testing your product on Amazon’s platform. This allows you to test and validate your product and build up capital to then invest in the right products that are popular with your target audience.
#3 – Go global!
Amazon is popular with customers worldwide and therefore a great opportunity to take your products to overseas markets and greatly enhance sales. Amazon has a global following already, making it much easier for you to export your products without doing all the legwork yourself.
#4 – Upskill
In the crazy consumer-driven market that represents the Australian retail sector, the ‘threat’ of Amazon can instead represent an opportunity to re-evaluate your strategy and grow closer with consumers. Bricks-and-mortar stores still dominate the market with 65% of consumers in a BigCommerce survey saying they still frequent physical stores. Think of how you can foster loyalty and continue to bring in your customers with innovation and use the Amazon opportunity to keep it fresh.
Don’t take our word for it! Ask them yourself: Amazon’s GM AU Marketplace Fabio Bertola will be at the biggest retail gathering of 2019 – New Retail ’19. Speaking on the marketplace and delivering a hands-on workshop on marketplace fulfilment with Amazon, this is your chance to see the glass half full and make the most of this new retail opportunity.
-To register, click here –