Pattern recently hosted a virtual round table that focused on consumer behaviors, beliefs and actions when it comes to Amazon Australia. Since entering the Australian market in December 2017, Amazon has seen tremendous growth in both its gross revenue and their consumer following according to our 2021 Amazon Shopper Report.
Hosted by Pattern Australia’s General Manager, Merline McGregor, our panel discussed the giant’s performance in the market, consumer perceptions and which categories best represent an opportunity to brands wanting to expand their exposure, sales opportunities, and customer following.
“We know that Amazon is not just a platform to sell products, but also a platform to drive awareness, tell our brand story and even launch new products into the market”, says Hermann Jaaniorg, Senior Marketing Manager APAC for BIC who joined us as a panelist.
Earlier this year, Amazon released its 2020 results. The company reported over $1.6 billion in gross sales which was more than double the previous year. Although marketplaces currently make up a small portion of online sales, Morningstar estimates that by 2030, 25 percent of the total in Australia will be via Amazon.
Amazon Australia’s traffic grew by 23 percent in June 2021 over the year prior, driven primarily by Amazon Prime Day. Site traffic data provided by SimilarWeb also indicates that the platform is retaining the gains it made in the last year, with Amazon.com.au’s traffic for May 2021 up 12 percent on the same month a year ago. With 474 million annual site visits, it still trails eBay but is quickly gaining ground.
Growth of Amazon Prime
Another pivotal indicator of Amazon Australia’s success is the increase in online shoppers with access to Amazon Prime. In our August 2020 report, 19 percent of online shoppers said they had access to their own or someone else’s Prime account. By May 2021, this figure had jumped to 31 percent with an additional 15 per cent saying they are likely to become a Prime member over the next 12 months.
“Amazon now has over 200 million Prime members globally and a Prime member will spend around 130 percent more on Amazon than a non-Prime member. In the US, Prime is the top reason consumers shop on Amazon. As more people become members of Prime in Australia, they will spend more of their money on Amazon,” says Dan Richardson, Pattern Australia’s Head of Business Development.
Indicators of longer-term change
For anyone selling online, these are the most salient statistics that were highlighted: 24 percent of shoppers expect to buy from different online stores and 20 percent will buy products online that they used to buy in stores. Equally importantly, although we’ve seen a dramatic shift to online spending, 40 percent of respondents don’t anticipate further changes to their ‘new normal’ – this is an 82 percent increase on the response during August 2020 when Australia was in a strict lockdown, and driven by the 60+ age groups.
Our research demonstrates that the swing towards online has become embedded in consumer behavior. Brands in categories poised for growth including homewares, baby, clothing and skincare would do well to invest further in digital diversification, including marketplaces.
According to Dan Richardson, it’s simple. “If you’re not on Amazon, get on Amazon. The best time to launch on Amazon was probably three years ago. The second-best time to do it is now.”