Amazon is Primed for Impact but Australian Shoppers Expect More

The time has definitely come where retailers are breathing a sigh of relief knowing that the impact that Amazon has made on Australian retail has been fairly inconsequential. New research by Starcom has found that Amazon has not exceeded the expectations of Australian consumers.

These expectations have been shaped by consumers’ experiences with Amazon.com and awareness of Prime benefits that are offered in the US. Starcom research has found that although Prime Day created excitement, Australia’s pared back version of Prime membership has left an expectation gap amongst consumers. This has meant that the uptake of Prime membership has been slow in Australia and has limited the speed of Amazon’s growth.

Despite Amazon’s claims that the launch of amazon.com.au was its most successful international launch ever, many Australian consumers have been left feeling disappointed. Whilst this year’s Prime Day was able to garner an increase in interest, it did little to change consumer behaviours.

Starcom Research Director, Nicole Conroy was quick to point out that it is important not to jump to conclusions, “in the digital age, it is more tempting than ever to take a short-term view, to elevate the importance of immediate consumer actions above long term brand building.”

Conroy pointed out that whilst the discussion around Amazon is mainly positive, it is its failure to implement benefits similar to that offered to its US customer base that is preventing its growth. “Our research has found that Australians who are increasingly positive towards Amazon, are thinking differently about Amazon and visit the site with a shopping mission in mind. It is the online shopping experience however, and the reduced Prime Australia offering, that are holding back Amazon’s growth here.”

Too often do brands that are successful in the US, open here in Australia with reduced offerings. No longer do Australian consumers rely on the US heavy-hitters for all their shopping needs and if these big brands want to be successful in the Australian market, they need to compete as they do in their markets back home.

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