How to sell on Amazon Australia and other Amazon FAQs
It’s no secret that Amazon is going to have a significant impact on the retail industry in Australia. In the United States, almost half (43%) of online sales go through Amazon and Australians already spend $600 million on Amazon in the US.
According to research from Nielsen, three out of four (75%) Australians say they are “interested” in Amazon Australia and 56% indicated they are looking to buy from the retail giant now that is has launched. And while conversion rates for ecommerce websites sit at less than 10%, conversions for Australian shoppers on Amazon US are quadruple that, at 49%, behind eBay (78%) and the popular fashion marketplace The Iconic (53%). So, whether you sit on the ‘for’ or ‘fear’ side of the fence, the reality is that Amazon Australia will affect retailers no matter what.
We have attempted to take a bit of the mystery and misinformation out of Amazon by answering all your questions to the best of our ability.
What is Amazon Australia?
Amazon Australia is the Australian version of Amazon US, a global marketplace with over 300 million active users in over 189 countries. Known for their cheap prices and fast shipping, Amazon began selling books and now sells ‘literally everything’ from electronics and clothing to groceries through Amazon Fresh.
Amazon sells everything from electronics and hi fi to fresh food.
How do I sell on Amazon Australia?
Access to the marketplace is currently by invitation only. You can apply for early access here and once approved you can create an account. The second step is to research your product to ensure that there is sufficient demand without over-saturation. And finally, you need to create your product listing and begin selling. If you are an existing Neto retailer, you will be able to sell products on Amazon from right within the Neto platform with our Amazon Australia native integration.
| Related Reading: 7 ways to integrate Amazon into your online sales strategy
What is Amazon Marketplace?
Amazon marketplace provides businesses a model where they can use the Amazon platform to market and sell their own goods, similar to eBay, Etsy and Catch Of The Day. Retailers set their own pricing and take care of inventory, fulfilment and shipping (unless they use Fulfillment By Amazon, which hasn’t been confirmed for launch).
How much does it cost to sell on Amazon?
Retailers will pay $49.95 a month to sell on the marketplace, and Amazon will take a 6-15% cut off the top of sales, depending on the product category.
What is Amazon Prime?
Amazon Prime is a paid membership program that gives members a range of benefits, deals and discounts including video and music streaming, free shipping and fast delivery - same day or even two hour delivery on certain items in the US. An Amazon Prime membership costs our US counterparts $99 US per year, and Prime members are reported to spend double that of non members. Although this hasn't been realised in the intial Australian launch, retailers should be aware of this service.
Amazon Prime offers members speedy 1-2 hour delivery times.
Can I sell on Amazon Australia from day 1?
Maybe. Amazon only allows approved sellers to sell, which means that you'll have to apply to the early access program (see above) to be a seller.
I’m a Neto seller, will I need a separate Neto platform for Amazon?
No. Neto is an All-in-One platform, which means that you can connect Amazon Australia to all of your existing channels. Whilst the Neto integration is in Beta, it won't carry any charge, and after that, it's just $49/Month.
Can I control what and how much I sell on Amazon from Neto?
Yes. Our integration with Amazon allows close control over your inventory so that you can choose not only what products to sell on Amazon, but also establish buffers that save stock for other channels.
Will I be able to sell in the US through Amazon Australia?
Unfortunately not. Amazon Australia is a separate Marketplace in Australia which means that you will not be able to sell on Amazon.com. The good news is that Amazon has confirmed that Australian vendors will have access to international markets through Amazon Australia. Additionally, we will be launching an integration with Amazon US soon which will allow you to sell on Amazon.com.
How do I use fulfilment by Amazon (FBA)?
Fulfilment by Amazon is a warehousing and customer fulfilment solution offered by Amazon to sellers that allows sellers to generate more sales without having to worry about the logistics. As a retailer you can send your products to an Amazon fulfilment centre and they will store your inventory, pick, pack, and ship your products to customers, and take care of your customer service and returns, all without you having to step foot in a warehouse. There is no minimum quantity or SKU count. Unfortunately, at this stage Amazon Australia does not offer fulfilment by Amazon.
Amazon fulfilment centre in San Fernando de Henares, Spain by Álvaro Ibáñez licensed under CC BY 2.0
How can I get my product listing to show up on the first page of results?
Amazon search is a powerful tool, displaying popular and successful products more frequently than others. Getting your products featured can be a bit of an artform, as there are complex algorithms at play. Just like a Google search returns pages with higher domain authority, traffic and quality content, as your product generates more page views, sales and product reviews, it will rise within the search results - known colloquially as ‘Amazon SEO’.
As we mentioned, Amazon SEO is determined by complex algorithms; however, following these steps is a good place to start
- Optimise your product description: ensure you include high quality photos, a good description, keywords, and item types. Keep titles short for mobile (less than 60 characters)
- Market your product: there are a few alternatives here including paid social media advertising and Amazon sponsored ads. Amazon sponsored ads are pay-per-click ads that will increase your product visibility within the feed.
- Product reviews: building up positive product reviews is a key component of the Amazon game. These can be obtained using a variety of tactics, but we recommend starting with selling quality products and delivering quick, top-notch customer service.
- Research your competition: research brands that are doing well in your product category and what sets them apart, and then do it better!
Positive customer reviews are critical to getting your products featured in search results
I'm not sure about Amazon, what's the benefit of joining early?
Like the US, Amazon Australia's marketplace utilise single listings to maximise customer experience. These single product level listings are generated from multiple seller's data, so joining early will increase the chance that your data is used to help populate the listing, providing you with some control over how your products are displayed.
At Neto, we‘ve been helping stores sell on eBay, and through online and physical stores for over eight years, and now we’re getting ready to help stores sell on Amazon. For those wanting to leverage the Amazon channel, investing early in the technology that enables you to seamlessly surface your inventory may give you a unique opportunity to gain a first-mover advantage.