By Joanna Perry | Global Head of Marketing

Practicology has polled Australian shoppers to assess their attitudes to Amazon Australia, to help consumer brands and retailers define their strategy for working with, or competing against, the growing online marketplace.

The findings highlight how consumers are beginning to use the platform as a reference point for many purchases, even if they are not ultimately buying from the site. This mirrors behaviour in the USA and UK, where Amazon is routinely the starting point for shoppers’ purchase research.

Practicology’s Amazon Australia Report 2019 highlights consumer attitudes to the marketplace as well as predicts future behaviour. Findings include:

Browsers are turning into buyers – 80% of the shoppers surveyed had visited Amazon.com.au in the previous year, but only 30% had made a purchase from the site. In comparison, 58% had made a purchase from Ebay.com.au, and 26% from Catch.com.au in the same timeframe. The research was conducted before Prime Day 2019, which will certainly have attracted additional new customers.

17.6% of all shoppers said that Amazon Australia had changed their shopping habits in the past 12 months. However, 27.1% said that they expected it to change their shopping habits in the next year.

Price is paramount – Brands selling on Amazon Australia should be aware of how price sensitive its shoppers are. 56% of all shoppers surveyed had visited the site to check product prices. And 62% of those who had made a purchase said they did so because it was cheaper than from other retailers (the top reason given).

Amazon.com.au is not proving to be universally cheaper. Price was also the top reason given by browsers who did not make a purchase. 41% of those who had visited but not bought said they found a product they wanted but did not like the price; and 29% said they found a product they wanted but did not like the cost of delivery.  

Prime membership – Prime has been a driver of sales growth in Amazon’s other markets, particularly as more products become eligible for free delivery. The poll indicates that brands and retailers should prepare for it to be a differentiator for Amazon Australia too. Although only 11% of those who had already purchased cited their Prime subscription as the reason why, 23% of all respondents said that they would definitely or probably sign-up for Prime in the next 12 months.

Product range – Although the product selection for its Australian launch was a disappointment to some shoppers, 68% of all shoppers said the marketplace provides a wide variety of products. In addition, 44% of those who had made a purchase from Amazon.com.au said they did so as the product was not available from other retailers.

Seller sentiment – Shoppers are broadly positive about brands and other third-party sellers who choose to sell on the platform. 53% of participants in the study said they were improving choice about how consumers purchase their products. Only 6% said that it damaged their perception of a brand if it was sold on Amazon.  

Key product categories – Certain product categories have been much more popular to Amazon buyers, and more attractive to browsers who would consider buying in the future.

Amazon Australia Consumer Polling Categories Purchased Graph

 

Amazon Australia Consumer Polling Categories Will Purchase

Practicology’s General Manager for Australia Merline McGregor said of the report findings:

“Despite what some consider to be a slow start to Amazon Australia’s sales progress, our sentiment analysis and the recent Prime Day results clearly show that the marketplace is gaining traction with consumers. Though only 30% had purchased from the site, 80.2% had visited it; their reasons for doing so prove they are using it as a key research tool when they are making purchase decisions.

Consumer brands must decide whether they want their products to be represented at the point that more consumers will be making purchase decisions and, if so, ensure that their Amazon presence meets consumers’ needs. In particular, pricing, the delivery offer and product details all need to be best-in-class to ensure that shoppers can find their products and click the buy button.”

1,024 consumers were polled online in Australia by Stable Research in 2019. Participation was restricted to those who had shopped online at some point in the previous 12 months and were aware that Amazon.com.au existed. There was an even split of male to female respondents, and 78% live in Metro areas.

You can download the full report at www.practicology.com/au/AmazonAU19  

For more information, report artwork or comments, journalists should contact us at hello@practicology.com.  

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