The 2018 Amazon Sellers Conference is in full swing. Recall that a year ago, Amazon Global opened its store at its 2017 conference and launched its Australian site and opened it to Chinese sellers. Rocco Braeuniger, regional manager for Amazon Australia, said: "The past year has been very significant for Amazon Australia, but the show has only just begun."


      First, after a full year of hard work, the number of products at Amazon Australia increased from 7.5 million at the time of launch to nearly 100 million. Of these, 20 million are from Amazon America, and Australian consumers can buy through the Amazon Global Store.


      According to related research, the biggest driver of product catalog expansion comes from the Amazon Australia station itself, which has increased from 2000 to 25,000 in one year. 40% of the platform (specifically 10,000 sellers) are local Australian sellers, while the rest are international sellers, most of which are Chinese sellers.

      (Number of sellers of Amazon Australia station in December - 2018, 2017)


      On February 26, 2018, the Australian station launched the FBA logistics service. After 10 months, 27% of sellers are now committed to providing FBA services for most of their products.


    FBA services are important to all Amazon sites. Before the launch of the service in Australia, the negative comment rate for the platform was the highest among all Amazon sites. When the Amazon Australia station was first launched, many shoppers did not receive the goods they purchased on time or at all. By April of this year, most of the problems were solved as more and more sellers started using FBA services or otherwise effectively operated the Amazon sales business.

   (Number of sellers using FBA services on Amazon Australia from February 20 to December 2018)


    On June 19th, Prime members plan to launch in Australia for a monthly fee of 6.99 Australian dollars and an annual fee of 59 Australian dollars, and more than 4 million products are available for purchase on the first day. The growing inventory and Prime product catalogue enabled Amazon to host its first Prime Day promotion in July this year. It is estimated that Prime Day is currently the largest shopping day at Amazon Australia. Despite this, this year's Christmas shopping season is expected to exceed the sales record set by the platform on Prime Day.


    The Amazon Australia, FBA and Prime plans are working together to turn the "flywheel". According to data from the website analysis company Similarweb, last month (November) Amazon Australia station reached the highest number of 16.3 million visits so far. This is even higher than last December's figure, so it is expected to reach a new high in December this year. The platform attracts between 4 million and 5 million visitors a month before it is fully operational and has been growing steadily since then. As shown in the chart below, Amazon Australia’s visits so far have more than doubled compared to last year.

    (Total visits to Amazon Australia station from July to November 20, 2017)


    However, eBay is still firmly positioned as the e-commerce leader in the Australian market, which has millions of sellers, with 76.4 million visits last month, five times that of Amazon Australia. Although Australia is still the only market for eBay ahead of Amazon, Amazon is increasing its horsepower to seek development to change this situation in a few years.


    Joe Lunn, chief strategy officer at Mindshare, a media and marketing services company, said: "Amazon's entry into the Australian market has indeed triggered a change in consumer shopping behavior. Before the arrival of Amazon, the competition in the Australian retail market was unremarkable. Now, I think we are Witness the most disruptive events facing the Australian retail industry since the advent of the Internet, because Amazon's influence far exceeds its direct competitors."


    With the growth of the number of platform sellers, the expansion of the catalogue and the launch of the Prime distribution service, the development of Amazon Australia has begun to increase. In the past year, the platform has not only experienced a situation of chaos, but also wisely applied strategies that are effective in other markets. All in all, after a year of growth and transformation, Amazon Australia has handed in a remarkable answer.


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