Pressure on existing local retailers and the supply chain

90% of Australian online shoppers think they will purchase from Amazon Australia – if it delivers what it promises.

Research commissioned by parcel delivery service CouriersPlease has revealed that nine in 10 Australian adults who have shopped online at least three times in the last six months will purchase from Amazon Australia, providing it fulfils its promise to deliver low prices, a good selection and fast delivery.

The survey results also revealed that online shoppers prefer to purchase from retailers specialising in single categories (fashion or technology, for example) over online marketplaces where they can shop multiple categories – like Amazon. 58% prefer specialist sites compared to 42% who prefer marketplaces.

Lower price is the main reason shoppers said they will purchase from Amazon, with 68% listing price as the persuading factor, followed by a wider range of products (important to 55%) and fast delivery times (30%).

“Amazon’s promises of lower prices and faster delivery times may put pressure on existing local retailers and the supply chain,” says CouriersPlease COO Hoy Yen Hooper.

“In the US and UK markets where Amazon has a large share of the retail market, one-hour delivery through Amazon Prime and competitive prices are being offered. In our survey, fast delivery was the least important reason for shopping on Amazon which may indicate that consumers in regional and country areas know that delivery may take longer as it is not commercially viable for many providers to have that sort of reach,” says Hooper.

Millennials in their 20s and 30s cited lower prices as the main reason for shopping on Amazon, 70% and 71% respectively. This reduces with age, with 63% of 50-somethings and 64% of people over 60 concerned about prices.

For those in their 50s, wider product choice would be the reason 58% would shop on Amazon, whereas only 46% of people in their 20s listed this as a concerning factor.

Currently, 18% of survey respondents said they purchase from Amazon and will continue to do so when it launches here. Only 11% of 20-somethings shop on Amazon, the lowest of any age group.

The results are from an independent survey commissioned by CouriersPlease of 1001 Australian adults.

Further reading

Ben Ice
BY Ben Ice ON 21 June 2017