Amazon Australia launched on Tuesday, ending more than a year of constant speculation. While a few big retailers feared its arrival, many others embrace the potential opportunity. Cin7 counts itself among the latter, and wants to help local brands make Amazon their channel.
What to Do Now that Amazon Australia Launched
News that Amazon Australia launched on Tuesday morning made headline across major media. While some may worry that it will change business overnight, Amazon will take time to adapt its market. This gives retailers and other brands in Australia and New Zealand time to make Amazon a channel in their overall business strategy.
Amazon Australia on Day One
Amazon Australia launched with products in 23 categories from global Amazon Vendors and some Australian sellers. According to Business Insider, the categories range from clothing and shoes (naturally) to home improvement products. Regional brands already using Amazon as a channel include Kathmandu, Bond’s and others. While Amazon launched with free shipping in Australia on some minimum purchases, same-day delivery and other promotions were limited. Ultimately, Amazon Australia will offer Prime, its special offer subscription program, some time in 2018.
The Delayed Retail Effect
It will take time for Amazon to iron-out its logistics and other systems. Thus, its initial focus will be on reliability, shipping, and customer experience. However, once Amazon gets that all nailed down, retailers will start to feel the effect. According to Cin7 Founder Danny Ing, even Kiwi brick-and-mortars could see a 5% to 15% drop in sales of some products by Christmas 2018.
The Omnichannel Answer
While brick-and-mortars will see an eventual impact, retailers can improve their business now that Amazon Australia launched. Amazon gives retailers access to millions of customers they’d never reach otherwise. “A brick-and-mortar retailer needs to be connected to the wider market with their eCommerce site and Amazon Marketplace…then connect those to your physical stores,” says Danny Ing. However, retailers need a mechanism to scale and fulfill orders with an omnichannel strategy. “If you don’t automate your supply chain, you’re stuck with processes that require more human intervention, and the more intervention you need, the less scalable you’ll be,” Danny says.
Learn More at Our Retailers Breakfast Conference
So, what must Australian retailers do to make Amazon a successful channel? It takes smart online marketing, product strategy, and technology. This February, learn more at the Cin7 Retailers Breakfast Conference.
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