Amazon hasn’t had the easiest of entries into the Australian market. After much speculation, the e-tailing giant launched their AU site in December, which was met with an underwhelming response.
But Amazon’s ambitions for Australia are still alive and big, particularly with the launch of Prime. With over 100 million members globally, Prime’s annual fees have rarely been as cheap as $59 AUD (to compare, the current US fee is roughly $160 AUD). The timing of this launch is also strategic; falling one month before Amazon Prime Day. Last year saw the e-tailing giant reach a record $1 billion USD in sales. Launched on 16th July, this year’s Prime Day is expected to surpass this total with the extended 36 hours of deals.
A lot is riding on the success of Prime Day in Australia. Using Hitwise data, here are some of our top stats:
Prime Day saw a large, but momentary, lift in online activity compared to last year.
Visits to Amazon’s site (both .com and .com.au) reached over 3.2 million on Prime Day (16/17 July), which was 47% higher compared to last year. By the end of the week (22 July), growth had stabilised at 17%.
The e-tailing giant still faces challenges with getting Australians onto its .com.au domain.
Despite Amazon’s ban on shipping from overseas sites to combat new GST laws, Australians are favouring Amazon’s .com domain over .com.au. The aim to get shoppers on one platform worked momentarily – visits on .com.au and .com were similar. But by the end of the week, Australians were again favouring the .com site.
Despite these issues, product demand on Amazon has shifted.
Although Amazon has yet to migrate customers to its AU domain, the e-tailing giant has seen a shift in consumer interest and product demand. Last year, top searches on Amazon were books and Kindles. In the lead up to Prime Day this year, Australians instead searched for gaming consoles, mobile phones and sportswear on Amazon’s site.
Prime Day also saw a major bid for Amazon’s own products.
As well as the Kindle, Amazon’s other products, including the Fire TV Stick, Echo Dot and Echo Plus, were amongst the top 10 viewed products over Prime Day. Each product received over 20,000 page views over the two-day period. But it was gaming consoles, particularly the Nintendo Switch, that dominated with over 70,000 page views. Following the steps of other key markets, we expect to see Amazon’s own product lines continue to grow and expand among Australian consumers.
Amazon’s conversion rates surpass other top retailers.
Conversions on Amazon AU (i.e. visits that lead to an onsite purchase) averaged at 7.77%, which beats out other top retailers in Australia. But these retailers are fighting back. For instance, eBay launched its own subscription service, eBay Plus, in June, going head-to-head with Amazon Prime. As a retailer or brand, track how demand for these subscription services will grow over 2018.
What does this data tell us?
After an “underwhelming” launch, Amazon is yet to dominate the Australian market, but the introduction of Prime has seen a shift in this direction. As we have seen in other markets, demand on Amazon has grown to include electronics, video gaming and Amazon’s own product ranges. If you are a competitor retailer or brand, track the growth of Amazon Prime, and its head-to-head competition with other retailers. Understand how these market shifts will impact your own product offering, particularly with peak retail period approaching at the end of the year.
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Chart 1* YoY = Prime Day 2017 (10-11 July) was six calendar days earlier than Prime Day 2018 (16-17 July). YoY dates are lined up by the number of days leading up to Prime Day.
Chart 2* YoY = Prime Day 2017 (10-11 July) was six calendar days earlier than Prime Day 2018 (16-17 July). YoY dates are lined up by the number of days leading up to Prime Day.
Chart 3* YoY = Prime Day 2017 (10-11 July) was six calendar days earlier than Prime Day 2018 (16-17 July). YoY dates are lined up by the number of days leading up to Prime Day.
Searches on 2017 = On Amazon.com. Searches on 2018 = On Amazon.com.au
Chart 4* Page Views = On Amazon.com.au