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The Amazon Effect

Amazon is on everyone’s lips at the moment. The Amazon Australia launch in December last year was the biggest launch in the company’s 23 year history, launching with products in 23 categories from a mix of global and Australian sellers. Regional brands already using Amazon as a channel include Kathmandu, Bond’s plus others.

It will take a while for Amazon to iron out its logistics and other systems however once this is streamlined retailers will start to feel the effect and brick-and-mortars could see a drop in sales of up to 15% by Christmas 2018. Eventually Amazon will launch Prime in Australia too, bringing in even more customers.

Now is the perfect time for retailers to improve their business by connecting their physical stores to the wider market with their eCommerce site and Amazon Marketplace.

Amazon gives companies of all sizes a level playing field to compete and as Amazon Australia continues to improve its supply chain the opportunities for current online businesses to add an Amazon channel makes for an exciting 2018.

So what must Australian retailers do to be Amazon ready? Talk to CIP Retail experts SMB Consultants about the next step in your business.

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