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Amazon is coming to Australia soon

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Why Amazon is not as successful in Australia as it is in Europe and USA

The tech giant Amazon has recently announced its expansion to Australia. However, the shocking fact is that people of Australia are not very interested in this change. We all know that Amazon has a strong customer base around the globe especially in Europe and USA. 

The first store of Amazon in Australia was not very successful and they lost 7% of their revenue. So it is disturbing that they are unable to replicate the success that they had in USA and UK.

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The challenges of Amazon in Australia

Being an e-commerce platform with the growing competition is one of the biggest challenges that Amazon is facing in Australia. The reason is that there are already many successful platforms that have a strong customer count in Australia as compared to Amazon. So it has to work hard in order to reach the level of success that it has been expecting. Apart from that, there are several other challenges that Amazon Australia has to face like:

  • Amazon is unable to grab the attention of the consumers. The reason is that humans have it in their habit that they will stay loyal to their store, brand, and product until it has maintained its quality. So for the same products, Amazon has to wait. 
  • As the rate of cyber, thefts and the credit frauds are increasing so most of the customers avoid online shopping. It means that Amazon cannot target such buyers because they will not listen despite the marketing 
  • Coming towards the grocery shopping in Australia only 3% of the buyers are available and they are satisfied with the services that are provided to them by the Australian stores. So in this case, Amazon has to work harder in order to grab the attention of this 3 % of the customers. It means that more wait and revenue lost. 
  • In the case of the clothing and footwear, Amazon has a good chance because only 16% of the people are buying from the physical stores. However, still, most of the brands have their online platforms that people prefer to buy. As well as they offer better discounts as compared to Amazon so the chances fall at this point. 
  • The biggest challenge that Amazon has to face in Australia is the fast delivery. The reason that it was able to quickly deliver the products in USA and UK. However, in the case of Australia, the population is more concentrated and the roads are narrow. It means that it might take longer in the delivery and so the customers will not appreciate the slow service.

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So in order to succeed in an area like Australia, the retailers of Amazon will have to adapt. If they want to attract the customers, they have to changes their products, services, and prices according to the requirements of the clients. As well as they have to find a solution to ensure that, the products will be delivered faster than any other online platform.