Free shipping from global UK/US Amazon stores for Australian prime members.

Feb 10, 2022    |     Amazon, eCommerce, Marketplaces, News

Earlier this week Amazon Australia announced that Australian Prime members will receive free shipping when purchasing from the US and UK global stores. Until the announcement, Prime members had to have a minimum $49 spend to access free shipping from the US and UK however, they will now receive it free until the 20th of March on all orders regardless of spend.

Additionally, as part of the promotion, non-Prime members who spend $69 or more will receive free shipping when previously standard shipping fees apply.

The promotion is clearly targeted to entice Aussie buyers to purchase more from the marketplace however, why would Amazon Australia encourage buyers to purchase from other markets considering they boast that over 200M products are available to find and purchase on the Australian marketplace?

Since launching in Australia in 2017 Amazon have always struggled with conversion outside of heavy promotional periods. Based on our analysis at Enrich Trading Group, we believe that 50% or more of the 200M+ products available on the Australian marketplace are being fulfilled from international sellers or Amazon themselves in a different market.

Amazon Australia (09.02.2022)

With the current state of global supply chain and the additional stress added to logistics infrastructure it can now take weeks, if not longer for international orders to arrive in Australia. This makes it incredibly difficult for Amazon own convenience, which is what their entire marketplaces is built around.

Brands, retailers and manufacturers with local inventory are in a unique position at the moment as we’re seeing brands with local inventory consistently winning the buy-box without having to compete on price simply because they can get the order to their customer faster. Anyone who trades on Amazon knows the buy-box is one of the most decerning factors for performance.

We’re looking for to seeing how the latest update from Amazon Australia will impact marketplace engagement and conversion as the marketplace continues to grow from strength to strength down-under.

Tyler Jarratt
Head of Partnerships
Enrich Trading Group

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