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Amazon Marketplace Australia - a New Sales Channel

Patrick Zuluaga - Tuesday, November 14, 2017
I attended the Amazon Marketplace Seller Summit Held at Doltone House Jones Bay Wharf Pyrmont. The session was focused on recruiting Small and Medium Enterprises (SMEs) to join the new Amazon marketplace. The Amazon representatives were very clear that they wanted retail businesses (retail and/or online) to consider their marketplace as a new sales channel to "Grow your Business in Australia and Beyond".

During the summit Amazon announced their plan to launch (nope no actual date was announced) simultaneously both the retail side of their business and the marketplace. Small and Medium Enterprises (SMEs) were encouraged to list and sell their products on their coming Australian Amazon Marketplace.

The initial pricing was announced to be $49.95/month (ex-GST) for the seller and an additional referral/commission fee per product sell of between 6% to 15% depending on the product categories. They did mention that an initial discount to these fees would be available for the sellers participating in the launch.

My take on it was for any Australian retail business to consider using the new Amazon Marketplace as an additional sales channel for their products. Any business considering Amazon Marketplace as a sales channel must include a number of variables and decision criteria that must be reviewed and analyzed to work out if it is appropriate to list their products or a selection of their products on the Amazon Marketplace.  Amazon representatives advised that to be successful a sufficient number of competitive products must be listed.  Testing the marketplace with one product was not recommend by Amazon.

Some of the key decision criteria that Small and Medium Enterprises (SMEs) must consider are as follows:
  • Consumer market segments (size of your target market demand versus possible competition from within the marketplace listings)
  • Price points and profit margins (less Amazon sales referral commission fees)
  • Uniqueness of your product
  • Ability to get your product/s into the crucial search/discoverability (buyers searching Amazon for your product)
  • Competitive shipping rates

The other point that Amazon took time to explain was their FBA (Fulfillment By Amazon). This can potentially be a significant advantage for the seller. Follow the links below for further information:

As a business have you considered or considering listing your products on Amazon Marketplace? Have you listed products on other Amazon Marketplace locations? If so, would you recommend it to others?

PS>> Read a LinkedIn post titled "Key takeouts & insights from the very first Amazon Seller Summit in Australia" by Roger Dunn from MediaCom

Comments
Lars commented on 18-Nov-2017 08:52 AM
Hi Patrick

Thank you, interesting article.

Thank you
Kind Regards
Lars

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