Could Amazon Australia help your business grow?
Updated: Oct 5, 2020
Amazon's the new kid on the block here in Australia. In America, Amazon is the first choice for most people to shop from. Here in Australia, we have our own way of shopping and normally we resort to companies such as Ebay, Catch, or Kogan. They are competitors of Amazon, but the business model, in terms of fulfilment capacity and seller partnerships, does not quite add up to the scale that Amazon operates on.
As Australians, we are always proud to support Aussie company's first. But the fact is, that local companies can be very successful by utilising Amazon's fulfilment facilities and services to expand their market.
In an article from Financial Review by Sue Mitchel(Amazon, eBay, Catch and Kogan competing for marketplace sellers), she mentions some hot topics regarding the future of Amazon within the AU market and provides some interesting data on those impacted by FBA (Fulfilment by Amazon) services.
One company mentioned is Astivita; they are located in Brisbane and reported that their sales were $38 million in 2010 with a complete downturn to $6 million in 2017.
Instead of taking the loss, Astivita decided to fight back with the support of Amazon Marketplace FBA. During this pivotal business strategy, they decided to target their consumers directly and converted their trade portal into an online store.
They tested multiple items to sell and realised their luck turned around when they started selling computer monitors and laptop cables. This is when they started noticing a spike in their sales and margins by 25%.
"FBA (Fulfilment by Amazon) changed the game for us," Mr Mizikovsky said. "They're charging $8 to pick it and ship it for us (whereas) it was costing us $30 in labour before shipping.”
"That's 100 per cent because of Amazon," said Mr Mizikovsky, who is now preparing to launch another non-appliances line on Amazon.
In summary, Amazon is a market place for any business looking to expand and remain relevant within this ever-changing world of e-commerce. Marketing on Amazon is said to be simpler than traditional marketing, but there are some tricks to this game in order to become the top seller and earn profits from the start with little to no losses.
AMAZON is actively seeking sellers (like you) to fill the Australian Market with your Aussie owned and operated products, with next day shipping available and fees of just $6+ per items for FBA (Fulfilment by Amazon). You can also take advantage of this vast and growing market if you're the master of your own fulfilment by utilising FBM (Fulfilment by Merchant) to promote your products nationally or globally.
Don't hesitate to contact us today for a free consult on how we can help you pivot your products to AMAZON and begin your dream of making money while you sleep.