Amazon Not So Scary Anymore; Still Lags Behind JB Hi-Fi
A new analysis report by UBS has revealed that Australian retailers may have the advantage over amazon, with brick and mortars still outdoing the internet retail giant in the product range department.
According to UBS’s ‘Evidence Lab’ report, as covered by The Australian, Amazon’s range covers just 33% of JB Hi-Fi across 12 electronics brands.
UBS analyst Ben Gilbert has identified store networks and the range of products available as a key differentiating factor for local retailers.
‘[UBS] believe Amazon’s ability to get key brands and category SKU’s has been limited. Our simple range analysis confirms this – of the key electronic brands across 6 subcategories, Amazon significantly lags JB Hi-Fi’.
The key question for UBS in its analysis was ‘will Amazon be a major shopping destination for consumers?’
While 28% said yes, the number is trending downwards year on year, with depth and breadth of product range being identified as a key issue.
‘Around 42 per cent of shoppers flagged Amazon is unlikely to be their primary shopping destination in 2019 vs. 28 per cent which said yes. This is a deterioration vs. the 2018 study’.
Unfortunately for Amazon, the rate of online penetration growth has slowed, however, since peaking in February 2019, despite growing by 14% in the last three years.
According to UBS, online sales still only make up around 9% of total retail sales.
While 28% of Australia shoppers have used Amazon, only about 38% expect to purchase from it in the future.
It comes as Amazon increases its logistical efforts with the introduction of Amazon Flex – an Uber style delivery service for the online retailer – alongside Amazon Hub, a click and collect platform.
While click and collect penetration still remains low, 62% of consumers regularly spend more when they choose to click and collect options.