Australia’s e-commerce industry is on the brink of monumental change as new data predicts that Amazon is on course to dethrone eBay as the country’s top online shopping site.
The American e-commerce giant, which launched in Australia just seven years ago, has quickly outperformed competitors with faster delivery times and local growth of its loyalty program, Amazon Prime, the report said. Jarden analyst Ben Gilbert in a study released Friday.
Traffic to Amazon’s website has grown by more than 20% over the past year, while its main rivals eBay, Ozbargain and Gumtree have seen virtually no growth or even negative growth over the past year. the same period.
If these trends continue, Amazon will overtake eBay as the No.1 retail website in Australia, measured by online visitors, Gilbert said.
“Amazon should not be underestimated,” he said.
“The local site continues to significantly outperform the wider market, helped by increased capacity and a move to next day delivery in Sydney [and] Melbourne.
Amazon the “biggest engine”
When Amazon launched in Australia in 2017, it was highly anticipated for its reputation as a so-called “category killer” in the United States.
But the business got off to a slow start Down Under, particularly after tax reforms prompted it to cut its local supply.
However, the company has slowly expanded its local range and opened a series of distribution centres, enabling it to offer next day delivery to customers in Sydney and Melbourne.
This, coupled with Amazon Prime – which makes free shipping for an annual fee – leads to its meteoric rise in the e-commerce rankings.
“Amazon has been the biggest mover this year, growing its market share by more than 40% from December to July,” Gilbert said.
“Amazon.com.au [is set to] overtake eBay as the No. 1 retail site in Australia over the next 12 months, based on the current pace.
Louise Grimmer, a senior lecturer and retail expert at the University of Tasmania, said Amazon was winning favor with Australian customers with a user-friendly website and growing product range.
“Customers find it easy to navigate the platform – eBay falls short in this area,” Dr Grimmer said.
“You could say the eBay platform is quite confusing, it looks a bit ‘dated’ and I think it’s quite overwhelming for many users.”
Amazon overcomes the “tyranny of distance”
Gary Mortimer, a professor at Queensland University of Technology, said Amazon took a “cautious and strategic” approach to its launch in the Australian market, slowly adding new categories over several years.
“[This] meant they didn’t hold inventory of unwanted goods, until the category was developed enough with a wide and deep range of offerings,” he said.
“Prime membership was [also] an immediate winner, as it offered access to free shipping, videos, music, e-books and games as well as exclusive offers.
Mr Mortimer said Amazon had also won customers by investing in its delivery speeds, overcoming what he called Australia’s “tyranny of distance”.
“The possibility of ordering today and receiving the next day is a strong point of differentiation and competitive advantage.”