All eyes have been on Amazon Australia since its launch in late 2017. Now, the US retail giant has launched Fulfilment by Amazon - here’s what it means for businesses with an Amazon Australia store.
If you were following the headlines late last year about Amazon Australia’s arrival into the local market, you’d be forgiven for thinking you were reading about a horror film. Contrary to popular belief, local retailers have lived to tell the tale and analysts say local competitors are as profitable as before Amazon’s launch into the country.
And as Amazon Australia continues its rollout Down Under, things are looking even more positive for traders already selling via Amazon Marketplace.
What’s new for the thousands of businesses with a registered Amazon Australia store
Online retailers can now benefit from Amazon’s cutting edge logistics capabilities - so if your business has struggled in the past to reach customers across Australia quickly and with ease, consider this a problem of the past!
Fulfilment by Amazon (FBA) allows the site’s registered traders to:
Send products to Amazon’s fulfilment centre based in Melbourne. Businesses pay Amazon to pick, pack and ship orders to their customers in both Australia and overseas, with the service also handling returns. It won’t break the bank either given FBA is pay as you go (click on the above link to learn more about Amazon’s fees).
Win-win for traders
Everyone in business understands that time is money and FBA saves sellers having to purchase shipping materials, pack orders or take multiple trips down to their local post office. Additionally, your customers are likely to experience a more efficient and effective customer experience as Amazon handles all customer returns.
In other words, if you’re a smaller business that hasn’t been able to reach its full potential because you’re struggling to keep up with the fast pace of online shopping, congratulations! The times have changed and now, you’re able to compete with the larger players in your space. On the other hand, if you are one of the bigger fish in your industry, FBA can help you to minimise your shipping costs and improve your customer service. Regardless of whether you’re a small, medium or large business, FBA helps your business to grow quickly as there are no minimum or maximum number of units required to be sent.
For those of us who are control freaks (go on, it’s okay to admit it), FBA allows you to manage inventory through an online user interface. Another massive benefit is that the service offers multi-channel fulfilment meaning you can fulfil orders from other sales channels.
So let’s adjust our focus slightly…
We’ve addressed the benefits for sellers but what about consumers? The great news for your customers is that products shipped via FBA are eligible for Amazon’s delivery service fees, which include free delivery on eligible orders over $49 (AUD) and one and two-day delivery options in selected areas.
Don’t have an Amazon Australia store yet? Here’s what you can do
If you’re a Woven customer, ask our team of experts about our connector that will allow you to export your business’ product data from Pronto Xi into Amazon. It’ll also manage your Amazon orders seamlessly into Pronto Xi. You can learn more about setting up your Amazon store correctly here.
Just three months into Amazon Australia’s launch and there are plenty of exciting things ahead for both traders and consumers (Amazon Prime immediately springs to mind although, Amazon hasn’t confirmed a release date for the subscription service yet).
Lead the way in your industry and start working with Amazon Australia, instead of battling against it. Feel free to contact us today for any guidance you need.