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· Posted on
March 8, 2024

Amazon Australia has stolen the show and $3 billion in market share from e-commerce companies

Amazon has just hit over $3 billion in sales in Australia and it now accounts for approximately 10% of all money spent on online shopping in the country.

What's the key learning?

  • A lot of this growth is thanks to its subscription service, Amazon Prime, which now has over 4.1 million subscribers in Australia.
  • Amazon didn't just come into Australia to have a small presence, it wants to own the market.
  • This strategy hasn't just worked for Amazon in Australia, but it's also allowed it to dominate in the US, Germany, the UK, and Japan.

👉 Background: Amazon launched in Australia back in December 2017... and it was pretty anti-climactic. The Aussie market was still learning to really embrace online shopping, and in such a geographically spread-out country, shipping logistics were still raw.

👉 What happened: Now, Amazon has just hit over $3 billion in sales in Australia. But that's not all—it now accounts for approximately 10% of all money spent on online shopping in the country.

👉 What else: A lot of this growth is thanks to its subscription service, Amazon Prime, which now has over 4.1 million subscribers in Australia.

What's the key learning?

💡If you’re looking to win the game, you need to win in every region you’re playing in. Amazon didn't just come into Australia to have a small presence, it wants to own the market.

💡As a result, Amazon applied its simple formula in Australia that it also uses across the world:

  • Offer a strong subscription
  • Offer next-day delivery
  • Offer elite customer service
  • Offer competitive pricing
  • Rinse and repeat

💡In 2023, the market share of Catch fell 27%, as Amazon grew its market share. And, this strategy hasn't just worked for Amazon in Australia, but it's also allowed it to dominate in the US, Germany, the UK, and Japan.

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