Why Australian Businesses Need To Start Selling With Amazon

It’s hard to believe that Amazon, the online shopping behemoth, started life as a bookstore in 1994. Today, it’s the largest e-commerce company with the highest revenue in the world. Amazon has officially been crowned the “king of e-commerce”. 

In Australia, Amazon ranks number two behind eBay Australia. But considering that Amazon launched in Australia only three years ago, its staggering sales growth can’t be ignored.

In this short period of time, Amazon Australia’s sales doubled to more than $1 billion in 2020 as the world found itself in lockdown, creating a major shift to online shopping. 

As an Australian business, if you’re not using Amazon’s services already, here’s why you must consider doing so ASAP!

Amazon’s Growth Over 2020

It’s not news that e-commerce has been a consistently growing industry over the last decade. People of all ages all around the world have continuously adopted online shopping habits. The fact that online retailers offer added convenience, variety, and ease of use became more apparent year after year. 

Then came COVID-19...

What was once an upward trend became a way of life. In order for businesses to survive, a shift to online and contact-free operations was not only recommended – it was vital. 

Food delivery services, entertainment streaming, and online shopping enterprises grew at exponential rates. And leading the charge in the e-commerce space was Amazon.

So drastic was the change that Amazon’s market value grew nearly 50% in under a year to $570 billion USD in 2020 alone. Sales weren’t too shabby either – there was 43.6% growth compared to last year – which has further secured Amazon’s rank at the top.

Source: marketplacepulse.com

These shifts haven’t only benefitted Amazon. The real drivers behind this growth are the companies that have pivoted away from in-person sales to an Amazon e-commerce platform. Businesses that put in the effort to make this shift are not just surviving – they’re thriving!

Amazon’s 4 Key Advantages For Australian Businesses

If you’re an Australian company active in the e-commerce world, there are several reasons why you should strongly consider using Amazon to sell your products…

1. More People Use Amazon That Google When Making Purchasing Decisions

These are the steps of the typical online customer journey:

Awareness → Consideration → Acquisition → Service → Loyalty

Even though the acquisition stage seems to be the most important – because it’s where the actual purchase happens – each step is vital to the success of a business that relies on online sales.

Nothing can happen if people don’t know that your product exists. Whether through word of mouth, seeing an ad, or reading a social media post, consumers need to know about your product. This makes awareness the very first step.

Across the board, it’s at the consideration stage that many online businesses fall short and lose customers. Consumers browse several online platforms when researching products that best suit their needs, have the lowest price, and offer real value.

This is why more businesses are investing in user discoverability tactics like SEO, SEM, Facebook, and other social channels. 

But you must also consider that 55% more people use Amazon than Google when making purchasing decisions – i.e. when customers want to compare different available products. 

Bottom line – when it comes to making it to a researching customer’s consideration list, having a presence on Amazon is a must!

2. Increase Your Customer Base

Amazon has 300 million active users of which 150 million are in the US. 

Having visibility on a platform with this many active users is a must. It’s your biggest chance to increase sales and is bound to have an impact on your bottom line.

3. Seamless Entry Into The Global Marketplace

Many Australian businesses use e-commerce giant, eBay Australia, to sell their products. eBay has been in Australia since 1999, so it’s a well-established platform that people have grown to know and trust. A third party platform like this is huge for smaller businesses with less reach. 

But companies that are looking to expand and have a truly global reach must look to Amazon.

Amazon accounts for 38% of all online sales in the US. Amazon operates in 14 different countries and has a huge presence in several important Western world countries like Germany, the UK, Canada, and more.

4. There’s No Need To Have Your Own Warehouse With Stock

As an Amazon seller, you have access to the Fulfillment By Amazon (FBA) service. You simply ship your products to Amazon directly – from there, they’ll take care of storing them, shipping when customers purchase, processing returns, and all other customer service needs.

By taking advantage of the convenience of FBA, your business saves a lot of time, effort, and money and lets you focus your efforts on innovating, improving your product offering, and growing your business. 

You also have the choice of arranging your own logistics partner in the US, which can be a cheaper alternative to Amazon’s service. 

Getting Your Products Listed on Amazon

Use the following steps to get your products listed and sold on Amazon’s marketplace…

1. Incorporate Your Company

To sell on Amazon (in the US) legally, you need your company to be incorporated in the US. You’ll need: 

  • A valid credit card number
  • Phone number
  • Tax ID information

Depending on what your needs are, you can either set up an LLC or a C corporation. Do your research about where it’s easiest to incorporate a company. For example, Delaware is a smart choice due to its tax flexibility, easy setup, and contemporary corporate laws.

2. Secure Your GTIN

Next, you’ll need a Global Trade Item Number (GTIN). These are the numbers beneath product barcodes and are used to identify your products online.

Amazon requires that all products sold through them have a barcode, and recommends getting them directly from GS1, a non-profit global organization that’s in charge of registering every single barcode.

3. Figure Out Your Australia Logistics

As an Australian company, if you choose to use Fulfillment by Amazon, you need to get your products to the US to have Amazon handle them for you. You’ll need to research your best choices in terms of sea or air freight, storing, and packing requirements, etc.

4. Organise Your US Logistics

If you choose not to use the Fulfillment By Amazon service, you’ll need to organise your own fulfilment partner and logistics and in the US. Take into account additional charges that will come with distributing products to customers, managing returns, and more. Outsourcing logistics to an expert company will make the entire process easier and more efficient.

5. Marketing Your Products

Now you’re ready to begin selling your products on Amazon! At this point, everything is in place for someone that sees your product to order it, purchase it, and get it delivered to their door. 

But there’s a catch – in order to buy, customers need to actually see your products. 

At First Page, we’ve made this our specialty. We’ve mastered the art of Amazon marketing over the last year with quality leads-building Amazon SEO and sales-boosting Amazon PPC. These services will get your products in front of the right audience at the right time.

If you have any questions about your Amazon marketing efforts, please don’t hesitate to get in touch with our specialists today. We’d be delighted to offer you a customised quote to help kickstart your Amazon sales journey.