Australian Small Business are you ready for Amazon?
I think Australian retailers are in for a rude awakening later this year when the retailing giant lands on our shores. The average Australian small business owner has little to no knowledge about Amazon and how they will compete for your retail space. Here are some key statistics to get your attention:
- In 2016 Amazon accounted for approximately 60% of the growth in US e commerce.
- Amazon turned over 82 billion dollars in e commerce revenue in 2016, the next closest was Walmart at 12.5 billion.
- Today half of all US households subscribe to an Amazon prime membership.
If you can’t beat em join em? Third party sellers account for approximately 30-40% of all sales on Amazon, a third-party seller is a seller that lists a product for sale on Amazon just like you would on eBay. The other selling method is fulfilment by Amazon (known as FBA), FBA is when you send your products to an Amazon fulfillment centre and Amazon manages the sale on your behalf. I think it’s vital that small businesses have a multi-channel selling strategy, and considering Amazon are the biggest player in the ecommerce game shouldn’t your business be on board when they open their doors later this year?
Thanks for reading,