Amazon Australia is trouncing leading local retailers including Myer and Kmart in online visitor traffic just four months after its launch, analysis by The New Daily reveals.
The e-commerce giant announced on Friday that its profits more than doubled to $US1.6 billion in its first-quarter results, causing the share price to surge 4 per cent.
But Australia’s part in this stellar result was not clear. The quarterly report contained only one vague mention of Amazon’s Australian launch in December, and no detail on sales.
So after all the early hype, how has Amazon been faring since it entered the Australian market in early December?
With the company’s report offering no clues, The New Daily contacted Amazon directly for comment but it refused to shed any light on how many Australians are using the new platform, nor would they reveal a typical user’s average spend.
In the absence of sales data, Amazon.com.au’s popularity can be measured by comparing its online traffic against its Australian competitors.
While Ebay.com.au remains the e-commerce market leader in Australia, attracting more than 90 million website visits each month, Amazon is already impressively outperforming an array of Australian industry leaders, according to similarweb.com.
Big names with well-established customer bases such as retailers Myer, David Jones, Harvey Norman and Kmart, supermarket giants Coles and Woolworths, and online shopping destination Kogan proved no match for Amazon.
Its web traffic has outshone each of these companies from the get-go and shows no signs of slowing down, with March figures having risen from January and February.
The Amazon Australia site last month had almost four times the number of visits (11.4 million) compared with Coles Online (3.45 million).
In comparison, Kmart attracted 7.35 million visits to its website, while Kogan had 7.25 million.
The Myer website trailed behind at just 2.85 million visits last month.
Myer’s answer to Amazon Australia – a new online retail platform called The Myer Market which launched days before Amazon.com.au went live – has been performing dismally in comparison.
While Amazon attracted 11.4 million visits to its marketplace in March, The Myer Market saw just 160,000.
Amazon Australia continues to grow
Marketplace Pulse founder and e-commerce analyst Juozas Kaziukenas said Amazon Australia now has 14,000 sellers with product listings on its platform.
He said almost 3000 of these sellers are already using the recently launched Fulfilment By Amazon (FBA) service, of which 60 per cent have considered a major part of their inventory to the service.
FBA allows sellers to store their merchandise at Amazon’s Australian warehouse. This means products can be shipped locally which is important in reducing shipping time for consumers.
“Amazon continues to add sellers, grow the catalogue, and have sellers commit to FBA for the soon-to-launch Prime service,” Mr Kaziukenas told The New Daily.
“In other countries, Prime members get free two-day shipping for orders from Amazon and from orders from sellers using FBA.
“When Australia gets Prime, sellers will win because they don’t have to do their own deliveries – and customers win because they don’t have to hope that a seller is not shipping the product from the other side of the planet.
“But Australia’s impact to Amazon’s overall sales is very small, and if anything will contribute to the unprofitable International segment for years to come as Amazon invests into international expansion.”
Amazon Prime is expected to launch in Australia later this year.