Is Amazon.com.au already saturated?

Jun 8, 2021    |     Amazon, eCommerce, Marketplaces

Research recently conducted by Marketplace Pulse highlighted that Amazon sellers are churning slower than new sellers are joining. And although the Amazon marketplace is growing, it’s being outpaced by new sellers. The study primarily focuses on the US market, however it poses the question of what this insight means for immerging markets like Australia.

After much speculation and rumours, Amazon launched in Australia in 2017 and has without a doubt grown from strength to strength. In four short years, Amazon is now the second-largest marketplace in Australia.

Amazon Australia boasts its users can now search and find over 150M products on their online marketplace. However, it is estimated that over 50% of purchases are being fulfilled from international sellers or by Amazon in a different market, as demonstrated below:

(Amazon.com.au Fulfilled by Amazon US)

Ultimately, this means that a large portion of Australian orders is being fulfilled from international sellers (including Amazon) which brings convenience into question with orders sometimes taking weeks to arrive. Especially considering the difficulty of having a package delivered within Australia within 2 days – let alone from overseas.

So what does this mean for brands locally in Australia? In short – opportunity. Based on the amount of stock currently being fulfilled by overseas sellers (including Amazon), brands that fulfil from Australia have an opportunity to capitalise on faster delivery time-frames enabling them to compete for the buy box and potentially without having to discount pricing.

Tyler Jarratt
Head of Partnerships
Enrich Trading Group

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