Are Australian Businesses Ready for Amazon?

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In anticipation of Amazon entering the Australian market, Unleashed recently conducted a survey with businesses on their outlook on Amazon’s launch down under. Numerous reports and articles have claimed that Australian retailers were unprepared for the entry of Amazon, with a report from the Commonwealth Bank finding that only 14% of retailers having a strategy to compete with Amazon, while 11% reported they didn’t deem Amazon as a significant threat to their business.

But what about the opportunities or threats for other businesses in the market, including wholesalers and manufacturers? Here’s what our survey found.

From the respondents, 75% run wholesale or distribution activities, 42% retail activities, and 38% were manufacturers. In our survey results, 9% of respondents planned to use Amazon as a new sales channel, while 55% were undecided on how they will treat Amazon.

With Amazon’s presence in Australia, some businesses see it as an opportunity to expand their sales channels and reach more customers. In our survey, 21% of respondents plan to use Fulfilment by Amazon. This feature allows businesses to store their products in Amazon’s fulfilment centres so that Amazon can pick, pack and ship it on their behalf.

Interested in how Amazon’s presence in Australia will affect intermediaries like wholesalers and distributors? Check out our series, Amazon in Australia!

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Melanie - Unleashed Software

Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.

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