Australian retailers “completely unprepared for Amazon’s arrival”

Posted by Andrea Hogan on 4th October 2017

Australian retailers are “completely unprepared for Amazon’s arrival” says marketing agency Datasauce.

After surveying the country’s current retail businesses, Datasauce said 10 per cent of its survey respondents were not even aware Amazon was on its way to Australia.

Only half knew about Amazon Prime which allows shoppers to pay one annual fee for all shipping on Amazon orders.

DataSauce Founder, Tzvi Balbin, said Amazon Prime is more advanced than almost any other similar offering in Australia.

“This means that even those who have upped the ante with quicker delivery times may still struggle to compete with this service and match the level of investment,” Balbin said.

Balbin trialled the Amazon Prime service a number of times on a recent trip to the US and said Australian retails may struggle to keep up with the speed and ease of the service.

“Amazon Prime in particular could be a game-changer in the Australian retail space,” Balbin said.

“For many retailers, trying to compete with one or two day delivery and free shipping may prove too much for them to be able to compete.”

Don’t try and beat Amazon at their own game

Balbin said Australian retailers should not try and beat Amazon at its own game due to its large financial backing. Instead, he advises Australian retailers to focus on what sets them apart.

“You’ve also got to look at how omni-channel your business is, so the shopping experience is seamless,” Balbin said.

“A number of physical retail outlets are optimising their customer experience so it’s seamless offline and online. It’s not enough to have in store pickup and claim to provide a true omni-channel experience.

“At the end of the day, to beat Amazon you need to focus on their weaknesses. Niche down, build and nurture a fanatical community, tell a story and leverage loyalty. After all, Amazon is a one size fits all,” Balbin concluded.


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