As the largest online retailer on the globe, Amazon posted a staggering $108.35 billion in product sales in 2017. While other big companies are happy with 3-5% in growth, Amazon still amazes with a year-over-year growth in retail product sales of 19%. This growth can be attributed in some part to all the third-party sellers on Amazon’s marketplaces, that make up over 50% of products sold on Amazon. With more than 140,000 sellers generating revenue of $100,000/year or more in 2017, their share in Amazon’s success cannot be denied.
Australian eCommerce gained a familiar face, when Amazon launched its services in early December of 2017. Until this day, eBay’s marketplace is the market leader in Australia, but Amazon Australia is making up ground. Until late May 2018, almost 14,000 sellers listed products for sale on Amazon’s newest marketplace. With an average of 8 products listed for sale per seller, it is clear that the Australian marketplace is of reasonable size und has lots of room for future growth.
Algopix’s Amazon Australia product research tool
Amazon.com.au doubled in market size in a matter of two months and is expected to grow to more than 50,000 sellers by the end of 2018. This dynamic environment makes it tough to build a successful product catalogue because products with few competition and good profit margins can be highly competitive in a few days. In order to stay ahead of the competition, fast product research is key. Algopix’s Amazon Australia product research tool provides you with invaluable insights into competition and demand level in no time, enabling you to make fast sourcing decisions, react to new competition, and take profits while they are still there.
Strict performance targets like a late shipping rate below 4% makes using Fulfillment by Amazon (FBA) inevitable
While FBA gives you the option to let Amazon take on all of your warehouse operations, it needs to be evaluated if the fees you accumulate for the service will be worth it. Especially in a new marketplace like Australia, storage space is scarce and the fees are significantly higher than other marketplaces. This will directly affect the profitability of your business. However, faster delivery and higher customer satisfaction thanks to FBA can increase sales. To facilitate the decision making, Algopix’s Amazon Australia marketplace research provides a detailed expenses analysis that contains all costs related to selling a product on Amazon Australia, be it marketplace fees, shipping fees, FBA fees, or taxes.
More than half of sellers on Amazon Australia ship from China
This is a global phenomenon: An increasing share of Amazon sellers come from China. These sellers are mainly manufacturers who discovered that selling directly to end-consumers is more profitable than selling their products to retailers. Because they have lower acquisition costs for the product and by cutting out the middleman, i.e. retailers, they can offer the same high-quality products for much lower prices than their competition. This affects your profit margins directly and given the dynamic competitive landscape,makes establishing your business on Amazon Australia more challenging.
Algopix’s Amazon Australia market research helps you identify promising products by providing you with an analysis of all costs related to selling the product and a calculation of the expected profit based on the purchasing price you provided. Additionally, Algopix’s Amazon Australia product research grants insights into a product’s sales volume and gross merchandise volume for the past 30 days so you know how often a product will sell. These actionable insights enable you to make an informed decision about what products to buy and ensures you source only products that are profitable.
An increasing amount of non-Australia based sellers are coming to Amazon Australia
Being a new marketplace is very attractive to many Amazon sellers, not only Australian sellers. The idea to take profits in the beginning, when competition is not that high and no top sellers have been established is appealing to everyone. International sellers see potential in different markets. Itis a valid strategy that should be adapted by Australian sellers too. Amazon’s FBA service takes away lots of uncertainty and risk regarding international expansion because you don’t need your own warehouse in order to sell in a new country. What’s left before committing to a new marketplace is thorough market research to ensure your business can succeed in this new environment. With Algopix, you can assess 7 international Amazon marketplaces and get invaluable insights into a product’s demand and competition level, expenses for selling in a country, estimated product, sales volume, and gross merchandise volume.
Algopix’s Amazon Australia seller tool
Given the size of your business, you have to sift through hundreds of products to find the most promising one. Manual research won’t bring you far, especially in a fast moving market like Amazon Australia. For this purpose, Algopix’s Amazon Australia seller tool allows you to research up to 200 products at a time delivering results in a matter of minutes.