42% of Australians expect to spend more online when Amazon launches in the country this week, and 51% say there is a “strong likelihood” they will shop at Amazon.
The most popular categories for online purchase are expected to be electrical appliances, followed by clothing, shoes and cosmetics, according to a UBS survey.
UBS said Amazon’s entry to Australia will accelerate the market’s shift to online purchasing, based on similar entries into Italy, Spain and Mexico. In those markets, online shopping doubled after Amazon’s market entry.
Home-grown Australian retailers will enjoy one last traditional Christmas shopping period, as Amazon starts out with smaller volumes and a limited product catalogue.
UBS said that many Aussie retailers were “well placed” to compete. Local competitors, including Australian brands’ and department stores’ online offerings and e-commerce stores such as Kogan, already enjoy strong online purchasing.
As I blogged previously, traditional local retailers have some unique assets they can leverage in their upcoming battle with Amazon. In particular, they can leverage their existing store networks for “click and collect” systems, where shoppers choose goods online and then pick them up in-store.
They can also use consumer showrooming behaviour to advantage, creating customised superior offers in real time for consumers already in their stores.