New research published by global digital consultancy agency Practicology has polled Australian shoppers to assess their attitudes to Amazon Australia. The consumer poll shows that more Australian shoppers are turning to Amazon, and the product categories where the site is most likely to gain market share in the next year.
The findings highlight that consumers in Australia are starting to use the platform more as a reference point for many purchases, even if they are ultimately not buying from the site. This mirrors behaviour in the USA and United Kingdom, where Amazon is routinely the starting point for shoppers’ purchase research.
Browsers 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. As this research was conducted before Prime Day 2019, it will certainly have attracted additional new customers. The research agency concluded that 17.6% of all shoppers said that the Amazon platform changed their shopping habits in the past 12 months. Another 27.1% indicated it is expected to change their shopping habits in the coming year. Brands selling om the Amazon platform should be aware of how price-sensitive shoppers are. 56% of all shoppers surveyed had visited the site to check product prices. 62% of those who made a purchase said they did because it was cheaper than from other retailers. The platform is not necessarily cheaper. Price was also the top reason (41%) to not make a purchase, followed by 29% saying they did not like delivery costs.
Although the product selection for its Australian launch was a disappointment to some shoppers, 68% of all purchasers said the marketplace provides a wide variety of products. In addition, 44% of those who made a purchase on Amazon.com.au said they did so as the product was not available from other retailers. These are two reasons why shoppers are broadly positive about brands and third-party sellers who choose to sell on platforms. 53% of participants in the study said they were improving choice about how consumers purchase their products. Only 6% said it damaged their perception of a brand if it was sold on Amazon.
“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,” says Merline McGregor, General Manager for Australia at Practicology. “Though only 30% had purchased from the site, 80.2% visited it. Their reasons for doing so prove they are using it as a key research tool when 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 best-in-class to ensure that shoppers can find their products and click the buy button.”
Do you want to read about all insights? Download the full report by Practicology here.