BREAKING NEWS: It’s Official Amazon OZ A Fizzer In 2017
Their launch back in November was billed as a flop now the story can be really told with Australian Securities and Investments Commission lodgements revealing that consumers spent more at JB Hi Fi than they did on the Amazon site during November and December.
New figures reveal that Amazon made a loss of $8.9m and only managed to generate $16m in sales for the entire 2017 calendar year. During this period the big US retailer was also selling US product and this stage it’s not known whether these sales were accounted for as Australian revenue.
According to Fairfax Australians spent 2000 per cent more at department store Myer than on Amazon’s newly launched local website.
Amazon had $6.3 million in “first-party” sales – which are products stocked, sold and shipped to customers by Amazon – for the period of December 5 to December 29, the accounts show.
Commission from “third-party” sales – which are products sold by other businesses on Amazon’s marketplace – came in at just over $1 million.
Commission, or “referral fees”, on third-party sales are between 8 per cent and 12 per cent depending on the product, suggesting total third-party sales of about $10 million for the month.
In comparison, the department store Myer reported average sales revenue of almost $340 million every month across October, November and December last year.
In the last half of 2017 JB Hi generated $3.7 billion sales rose 41% and net profit was $151M.
More to come…