So Amazon launches in Australia today. This will be a quick post, like all on &Mine structured for business and its influence, as the multitude of details for Amazon and how it lands / disrupts in Australia will be pulled apart in detail from “experts” in the coming months; To be honest, nothing will be as clear as hindsight and I haven’t seen anything aside from PR hype driving big insights (if you have then send them in). Forecasting how big an impact Amazon Australia will have, I think at best we can only guesstimate and scratch the surface, as they “PR” talk-big and rarely play all their cards. Ok – here are my top insights ;
And Bigger than all of this, a warning; putting your head in the sand won’t cut it. Again, Amazon Australia, same as USA, Canada, EU, Global ; they are gathering data, learning from it and using this foundation to bet on obvious outcomes. They’ll dial up cosmetics and cut out watches, or bring in grocery and avoid nursery if the data in specific categories doesn’t show positive confidence. If it works it will be hailed as disruptive again, if not, Amazon know well beforehand. I think it will be somewhere in between, it will work for some categories, others not.
The good news is, it is easy to be part of this platform, Amazon are contacting all sorts of businesses to be part of the initial rollout. It isn’t hard to on-board, especially with tools that synchronise inventory management into Amazon.
Non-Manufacturing Retailers should be wary, but that doesn’t mean avoid. Manufacturers should be all over the platform. Both should be trialing the platform to see how YOUR data performs. It is the same advice we’ve put out about Ebay countless times; they are if nothing else, HUGE traffic platforms, able to expose your products to more customers, who are well down the funnel of purchasing. How do these customers compare… that is exactly what you should be into multi-channel to find out.
If you’ve got a specific challenge or uncertainty ask away, or contact us if it is confidential / NDA worthy. We’re already seen many unique cases and helped vet Amazon policy and legal agreements so that our clients can benefit while de-risking the long term play.
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