Amazon has launched Amazon Prime, let’s drill down into what’s happened and what the fuss is all about.
It’s been a big year or so for the Amazon juggernaut in Australia since launching its Marketplace last December. Now, the online shopping giant has launched its premium Prime delivery service. That said, Prime is so much more than a delivery service.
What’s on offer to Aussie customers?
Essentially, Prime is a game-changer because it offers Australians fast and free delivery and so much more. For $6.99 a month or $59 a year, the service includes free delivery to addresses located in Melbourne, Sydney, Brisbane, Perth, Adelaide and other major regional areas. Aussies located in major cities are likely to wait around two days for delivery while those in remote areas can expect a four day delivery turnaround. Amazon is also saying that their new service will offer Aussie customers free international delivery on products from Amazon US. Note: orders over $49 will receive free international delivery but not for everything sold in the US. Amazon says “Prime members in Australia will have access to more than 4 million products” on its US site.
Before Prime’s launch, Amazon customers paid extra for priority overnight delivery within Australia. Now, the 4.6 million Aussies who were previously ordering via Amazon USA, can continue to do so by becoming a Prime member (now that’s a handy benefit!).
Prime is more than a delivery service
In addition to taking advantage of its delivery services, a Prime subscription rewards users with access to Amazon’s streaming services. They include: Amazon Prime video, Amazon Prime Reading and the Twitch gaming platform. Launched in Australia in 2016, Amazon’s video on demand service is one of the market leaders behind the likes of Netflix and has original Oscar winning content.
What this all means in a larger sense
Amazon Prime’s pricing is being viewed by many retail commentators as incredibly competitive and a sign that the US retail giant has a long-term vision in Australia. We also know that the company is growing its network of fulfilment centres in expectation of coping with anticipated customer demand in the country. Meanwhile, we’re seeing a shift in shopper behaviour and it is likely this trend will continue. A lot of brands in the country are still weighing up whether to sell their products via Amazon Australia - they’re sure to track Prime’s growth and reach within the country keenly over the coming months.
Here’s the thing: the higher Prime’s subscriber base grows, the more likely Amazon is to see more people shopping on its Amazon Australia platform. In other words, for any businesses currently sitting on the fence, it will become the place to be (even more so than it already is) to win over Aussie shoppers.
Since Amazon’s launch into Australia last year, we’ve been encouraging businesses to get ahead of the game and sign up to become an Amazon retailer. Why? Because it’s yet another place where you can maximise your brand’s exposure and we know the retail giant is likely to continue expanding throughout the country.
Moving forward, Prime customers will be shopping on Amazon first so you need to be listing your products there. When it comes to getting people into their eco-system and keeping them there, Amazon are absolutely masters! Sure, most of the commentary published last year focused on Amazon’s pricing being fairly standard (keep in mind, it has carved out a reputation for itself globally for its lower pricing) but we’re seeing the company rapidly cutting costs - check out its electronics line. You can read more about making your brand visible on Amazon here.
In the meantime, watch this space. We’re sure more exciting things will take place with Amazon Prime in the coming months.
Want to get your store’s items onto Amazon Australia? Contact us today.