Australian consumers eagerly anticipate Amazon’s arrival

Internet Retailing

21st Feb 2017

While retailers form emergency response teams to defend themselves from Amazon, Australian consumers are eagerly anticipating the arrival of the e-commerce giant.

Based on a survey of over 1500 Australians in January 2017, Nielsen’s Omnibus research found that 75 per cent of Australians over the age of 18 are interested in Amazon coming Down Under and over half are likely to purchase from the site.

Crucially,  45 per cent say  they are open to becoming an Amazon Prime member to receive special deals, discounts and delivery perks. Speaking to an anonymous Amazon source, Inside Retail Weekly has learnt that the online giant plans to enter the Australian market with Prime first.

Australian consumers are more likely to buy certain products than others from Amazon. The top categories include: electronic goods (67 per cent), books (61 per cent), clothes (59 per cent) and shoes (42 per cent). Fewer people are likely to buy packaged groceries (18 per cent), fresh vegetables (9 per cent) and fresh meat (7 per cent).

Amazon’s appeal is highest among younger age groups and male shoppers, Nielsen found. The main draws are Amazon’s range of brands and products, its fast and cheap delivery and low prices.

Despite the fact that Amazon Australia has yet to launch, the company’s US site already converts almost one in two Australian visitors (49 per cent) into sales. This is the fourth highest conversion rate of an e-commerce site in Australia, behind eBay (78 per cent), The Book Depository (74 per cent) and The Iconic (53 per cent).

According to Nielsen, it is increasingly important for retailers to make their online experience transparent, with easy access to to information. Value, personalised customer experience and convenience are all key to e-commerce success in the age of Amazon.