Amazon Launches In Australia

5 Dec. 2017 - - Total Reads 4,561

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 ;

  1. Don’t underestimate Amazon because of their global PR stunts, they are a disruptive brand because they understand data, how to acquire it, massage it, and amplify and grow it; they are a digital consumer channel; they bet on home runs when ever they can see them.
  2. YOU are the data and the info they are gathering, this isn’t about being big brother, this is digital customer service, and cutting a massive wedge in the distribution model. It is financially driven and will happen.
  3. They aren’t doing anything we haven’t seen in eCommerce; what they are doing is orchestrating a bigger play all at once; bigger capital investment to drive a return; the same as any business BUT they have a multi-year strategy to burn money to purchase customer loyalty. The last industry that did that on a massively successful scale; telecommunications – the initial radio-frequency licence fees alone were astronomical, but if you could acquire a multi-million user customer (database), a licence to print money.
  4. Retail stores who don’t produce their own products are at the biggest risk, why, because more and more spending is moving online. It one of the reasons why you see shopping centres morphing into larger and larger food courts.
  5. Manufacturers who do produce their own products here are also at risk, if they don’t hold a strong position in purely digital sales, the long term challenges may be overwhelming from sub-par or on-par competitors.
  6. Just because Amazon are more expensive on a particular RRP search (like my lego search here vs Ebay) (and you pay delivery under $49) this is a red herring for direct competition; don’t be fooled – to Amazon, this is all about the test of what they can leverage their “Amazon will be the cheapest” PR for customer loyalty vs. the long term discounting and category highlighting, marketing we will see in market.
  7. Sink or swim Amazon have a huge runway, they also have a HUGE country… we aren’t small geographically and if they face any challenge it will be underestimating the scale of AU. Take this with a grain of salt though as smart money will be they focus on capital cities, where the majority of us live; courier companies and eCommerce is already thriving here, so I’m only half baked on this hurdle.

ebay v amazon Amazon Launches in Australia and YOUR Business.

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.

Michael Simonetti
Posted by:

Post Reads: 4.6K

Share this

Go on, see if you can challenge us on "Amazon Launches In Australia" - Part of our 168 services at AndMine. We are quick to respond but if you want to go direct, test us during office hours.

Add Your Comment

Trusted by

Carlton Football Club
Amino Active
Forbes
Hairhouse Warehouse
Windsorsmith
Hanover
Max’s
Jetstar
Appstore
Xavier
Dial Before You Dig
131 Pizza
Grainshaker
Sunday Creek
Bulk Nutrients
SwinBurne University of Technology
CSquared Executive
The Fortune Institute
Rock Pool Group
Scrum.org
Vendor Advocacy Australia
OMS – Order Management System
Melrose Health
Kadac
Cronos Australia
Green St Juice CO
Microsoft Certified Azure Fundamentals
Melbourne Heart
Etihad Stadium
Tomorrow Stars Basketball
Unsw Australia
Chia
Think & Grow Rich Inc
Coles
Maximising First Impressions With Design – Oakdale Meat
Drupal
Mecca Brands
GPT Group
Madman Entertainment
NMI Insurance
Toni&Guy
iPrimus
OJAY
The Canberra Times
Jalna
Ebay
Melbourne Sports and Aquatic Centre – MSAC
Boston Consulting Group
SunSense Digital Agency
Bintani Australia
Royal Freemasons
Beaumont
WTFN
Tribe
SMH – The Sydney Morning Herald
Aqium Gel
Natralus Australia
Loan Market
Craft CMS
Bondi Sands
Ego Pharmaceuticals
Cell Therapies
CB Richard Ellis
DepSkin.com
Dinosaur Designs
Toy World
Movember
Watches of Switzerland
ADP Payroll
Wild Rhino Shoes
Viktoria & Woods
Melrose MCT
Oracle
Tassal
Street Kitchen
Parker Lane
Ubertas Group
Fast.co
TPP
Crumpler
James Buyer Advocates
DeeWhy Market
Grays Ecommerce
Moov Head Lice
Google
Switzer Media+Publishing
Plan It Sync It
News
Marshall White
Australian Organic Food CO
High Street Armadale
Ello
Mamma Lucia
Novvi
The Age
Fairfax Media
Passage To India
Oakdale Meat Co
Arc One
The Burger Cheese
National Relay Services
Focus On Furniture
Melbourne Central
Matchbox Homewares
Acquia Certified Site Builder Drupal
Celebrate Health
Naturtint
Bank of Cyprus
MyAccount
Arthur Galan
Van Egmond Group
MAP
DUSA, Deakin University Student Association
Adobe Professional
BlackMores
Catholic Insurance
Federation University Australia
Palace Cinemas
Passage Foods
Florsheim Shoes
Macmillan Publishing
Magento
Schiavello
Liveoneday
LBG Australia and New Zealand
Buy Aussie Now
Instant RockStar
Grow Your Business
Australian Physiotherapy Association
Sports Power
Elucent
McArthur Skincare
Australian Government
ISO Certified
White Suede
Associated Press
Uber
Magento Solution Specialist
Metricon
Atlantic Group of Companies
Paypal
Rydges
Australian Anthill
Federation Square
Fresh Cheese Company
GooglePlay
RMIT University
Bigcommerce
Smart Company
Castran Gilbert
Heat Holders
Tek Ocean
Kay&Burton
VISSF
Telstra
Peter Mac
QV Skincare
Brisbane Times
AC/DC
Positive Poster
National Museum of Australia
Maxine
Engineers Without Borders
Engine Swim
Victorian Government
Rackspace
21st Century Australia Party
Garmin
ABC
Eway
POSTER Magazine
Shell
CAN- Common Wealth Bank
The University Of Melbourne
One Shift
Bostik

Testimonials

The guys at &Mine are one step ahead and have made the process pleasant and stress free. All credit to them and their great working culture because I expected the process to be awful. I am looking forward to taking this project live and doing more business with &Mine. Lauren Brown, Director, Motto fashion

More Testimonials
AndMine-Google-Partner-Signature