Amazon Australia is LIVE. What did the soft launch tell us?

Growth Insight with Ewan Watt, CEO – ROI Growth Agency.

I have analysed Amazon.com.au traffic and in this blog you’ll discover:

  • The additional traffic Amazon.com.au has generated
  • A look at Amazon’s strong shopping categories
  • Amazon.com.au’s digital performance compared to Australia’s leading retailers
  • The opportunities and threats to Australian businesses uncovered

Background

  • Amazon.com.au now LIVE after much speculation and anticipation
  • In the past 2 weeks; Amazon.com.au had told their sellers their Australian soft launch date was November 23, just before Black Friday
  • They are offering millions of new products across 23 shopping categories
  • Their day 1 value proposition includes:
  • Free shipping for all purchases over $49
  • Standard Delivery between 3-7 days in capital cities and major regional areas
  • 1-day priority delivery for $9.99 to capital cities (excluding Perth)
  • Amazon Marketplace, which is the private label option for businesses to sell through Amazon.com.au, has a different service proposition depending on the capability of the supplier.

Key Stats Nov 4th to Nov 30th 2017

ROI.COM.AU Growth Agency blog titled Amazons Live What did the soft launch tell us?
GRAPH – Illustrates the average daily visits (Nov 4 to Nov 30 2017) for the Consumer Electronics category, to Amazon.com.au, jbhifi.com.au, kogan.com.au, thegoodguys.com.au and harveynorman.com.au. The peak reflects the traffic each retailer received on Black Friday.
  • Amazon.com.au’s traffic hit the same numbers as JB HiFi on Black Friday
  • Amazon.com.au’s anticipated launch, with no addiitonal products, is already generating an additional 100,000+ visitors per day to the site
  • Most of Amazon.com.au’s traffic is being generated from general merchandise, books & consumer electronics. This will quickly change to also include toys and homewares with the launch of their extended product range today

Traffic comparison – Amazon.com.au compared to major Australian retailers

ROI.COM.AU Growth Agency blog titled Amazons Live What did the soft launch tell us?
GRAPH – Illustrates the average daily visits Nov 4 to Nov 30 2017, to amazon.com.au, myer.com.au, davidjones.com.au, kmart.com.au and target.com.au. The peak reflects the traffic each retailer received on Black Friday.
  • Amazon.com.au is already showing its much stronger digital reach than Australia’s major traditional retailers which include myer.com.au, davidjones.com.au, kmart.com.au and target.com.au
  • Amazon.com.au’s regular traffic base has already reached the same levels as kmart.com.au and target.com.au

Digital Channels – What channels generated Amazon.com.au’s traffic in Nov 2017?

ROI.COM.AU Growth Agency blog titled Amazons Live What did the soft launch tell us?
CHART – Illustrates the % of traffic generated from various digital channels including Direct, Email, Referrals, Social, Organic Search, Paid Search and Display Ads
  • Much of Amazon.com.au’s traffic is ‘direct’ and ‘organic’ due to its strong global brand awareness
  • Large scale media coverage is spiking interest and driving traffic through to Amazon.com.au
  • com.au is making a relatively small investment in paid search & social media advertising
  • Amazon Australia is investing in Google Adwords across desktop and mobile to promote the .com.au site, in an effort to ensure Australian users go to the local site instead of the international .com site

What shopping categories are the Amazon.com.au audience interested in to date?

ROI.COM.AU Growth Agency blog titled Amazons Live What did the soft launch tell us?
CHART – Illustrates the % of audience interested in the various categories
  • Consumer Electronics (and its kindle books) are currently generating the most traffic on Amazon.com.au
  • Most analysts expect ‘Toys’ to be the next growth category given the busy Xmas season

Amazon.com.au Demographics

ROI.COM.AU Growth Agency blog titled Amazons Live What did the soft launch tell us?
CHART – Illustrates the Gender and Age distribution of the Amazon.com.au audience
  • Based on early indications, males aged 25-44 will be the main demographic to target with the purpose of increasing their number of purchasers on Amazon.com.au

Which sites are referring traffic to Amazon.com.au?

ROI.COM.AU Growth Agency blog titled Amazons Live What did the soft launch tell us?
CHART – Illustrates the domains referring traffic to Amazon.com.au.

In addition to the obvious such as Audible.com.au which is an Amazon company; the most interesting sites driving traffic to Amazon.com.au are:

  • Amazon.com.au – a small site notorious for the best deals available as rated by a passionate online community
  • Amazon.com.au – a Chinese community website

 The opportunities and threats to Australian businesses uncovered

  • How quickly digital trends and business can and will shift in 2017/2018
  • The importance of retention and life-time customer value to most businesses
  • The importance of knowing your market segments and the demographics where your business has the most competitive advantage today and in the future
  • Can Amazon.com.au be a new distribution channel of certain products for your business? Which of your products are the best fit for Amazon.com.au?
  • How competitive is your product offering compared to the Amazon.com.au offering?

My Experience & To Do Lists for Australian Business

  • Invest in data cleansing and segmenting your data during December 17 / January 18
  • Separate existing customer and new customer lists in your business
  • Segment your digital marketing between existing customers and new customer acquisition
  • Understand where your business can win in 2018 and what part of your business you are going to let go or not focus on for the year ahead.

How has your business and industry been impacted by digital trends in 2017?

Request a Complimentary Benchmarking Report for your business.

Simply contact us on (03) 9888 4400 or email [email protected] and we’ll be in touch.


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