Amazon Oz Sales To Crack $23bn In A Decade
According to a new report, Amazon’s Australian sales has already more than doubled this year alone and is tipped to reach around $23 billion over the next 10 years, due to consumers being attracted by a wider range of offerings from global tech giants, better pricing and more efficient shipping.
The Morningstar forecast, reported in the Financial Review, states that despite the slow start post-Amazon’s launch in the country back in December 2017, the e-commerce giant had improved in this space due to replicating “many of the strategies that have made it successful in other markets”.
“While Amazon is at a different stage in each of its international markets, we believe its longer-term objectives mirror its North America online retail segment,” the report said.
In 2018, Amazon Australia generated around $260 million in retail sales, and Morningstar analyst Johannes Faul believes that that number will more than double during the 2019 period, while sales in the region are forecast to reach $23 billion.
“We believe Amazon’s playbook in the region will mirror other international geographies, with expedited shipping spurring Prime membership growth and Amazon’s content offerings then unlocking future member subscription/monetisation opportunities,” Faul told the Financial Review.
“Besides sharper pricing and improved fulfilment, we expect additional product categories to drive site traffic and underpin this sales growth.”
“For instance, Amazon Australia added its garden assortment in September, just in time for Southern Hemisphere summer.”
According to Morningstar estimates, Amazon is gaining traction in the Australian e-commerce market, garnering 3% of the market share, ahead of Kogan.com on 2%, though is still be trailing begin eBay who currently have a 22% share of the market.