Insight Report #001: Launching Our Client on Amazon Australia

Australia Welcomes Amazon FBA!

According to the Australia Post’s “Inside Australian Online Shopping” article published in 2019, the online spend reached 10% of all retail sales in 2018. Australians spent Au$27.5 billion, buying goods online which may seem insignificant to the Au$1.95 trillion GDP for the year, but a steady growth in the budding e-retail space is an indicator that early movers will have the opportunity to grow as the industry grows.

With Amazon introducing fulfilment options from Melbourne and Sydney in 2019, the scope of e-commerce in the Asia Pacific region has just received a substantial boost, and now residents of Australia can take advantage of much shorter delivery times on their orders, than when they had to wait for their purchases to be shipped to them from regions likeEurope and North America. The beauty of Amazon’s success is its focus on customer satisfaction and constant e-commerce innovation, which helps them retain popularity with buyers in major markets across the globe.

Australia is now set on a pathway to achieving an e-commerce boom. A relatively untapped market for sellers across the globe, it offers a great launching pad for newcomers in particular to have the opportunities to grow their brands without facing stiff competition from bigger, more popular and more experienced sellers.

Our client's brand (referred to as “R” in this article) is owned by two partners keen on capitalising on the growing e-commerce opportunities that Australia has to offer. Driven by his experience with kitchen goods, one of the partners at R has envisioned R as a kitchen brand on Amazon.

 

The Project

R is in Phase II of its product launch in Amazon Australia.

ABAZ was approached with the task to establish R as an Amazon seller with the following services acquired by them, divided into 4 phases:

·             Product research – a shortlist of 10 profit-potent products with 2 selected for the second phase

·             Sampling & sourcing – 2 suppliers shortlisted for each product

·             Listing

·             Marketing

The following are the timelines, where the duration is standardised for target completion for Phases I and II for R:

 

Phase I Product hunting

Duration 12 days

Phase II Sampling & sourcing

Duration 2.5 months

  

Our experience with navigating the product research was unique with Australia, where we had to adapt to methods which did not include commonly used Amazon research tools such as Jungle Scout, Helium10, Merchant Words etc.

We opted for in-depth analyses into market trends and popularities of products on other online marketplaces (Amazon is not the most popular online marketplace in Australia) to determine products which will drive the highest potential for e-commerce success for R.

Our research was heavily focused on kitchen products to match the suitability of R and the brand vision, however, we decided to include additional categories in our findings to maximise the possibilities for R. Ultimately, two kitchen products (common in application, but uncommon in design and material) were selected by the owners of R.

Phase II of the project presented challenges in matching the client’s budget and customisation specifications with the quotations and MOQ, respectively, from suppliers. We advised R to reduce their sourcing options to one product only, for which, instead of selling the product as a single unit, they sell it as a pack of 2 within a single SKU.

Having negotiated prices with R’s future suppliers in China, we are targeting their products go live on Amazon Australia by January 2021 (Q1).

Main image source: Melbourne Street
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