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Latest consumer data: Why brands must consider building an Amazon presence

Amazon is once again capturing shoppers’ attention with Prime Day. Looking beyond two days of discounts, what impact has the marketplace really had on both Australian shoppers and the retail market since its launch? 

For the past three years, Pattern has monitored the behaviour of Australian online consumers, and specifically their Amazon shopping habits. As a marketplace Seller representing a growing number of consumer brands on Amazon Australia, we’re interested in indicators of the platform’s success.

Below we’ll delve into the numbers and explain what they mean for consumer brands questioning whether they need an Amazon presence.

With over $1 billion in sales in 2020 – and an estimate it will reach more than $4 billion by 2023 – Amazon appears to be on a huge growth trajectory. Data from our third annual Amazon Australia Shopper Report backs this up.

The percentage of online shoppers who have bought from Amazon.com.au in the past year nudged up by two percentage points to 49 per cent between August 2020 and May 2021. Amazon has retained the gains that it made during lockdown last year (the percentage reporting they had bought from Amazon.com.au grew by more than 50 per cent between 2019 and August 2020).

Other indicators suggest the marketplace is attracting the kind of shoppers many consumer brands would prize. The percentage of Amazon shoppers buying more than 12 times a year has grown by over 50 per cent. Those with an annual household income of more than $100,000 are over twice as likely to buy frequently than those in lower-income groups.

This is likely driven by the growth in Prime membership. Thirty-one per cent of Australian online shoppers now have access to a Prime account, up from 19 per cent just nine months ago. The wealthier the household, the more likely they are to have Prime. 

Prime’s impact on purchases

We can see the impact Prime is having on purchase decisions. While price was the top reason shoppers chose to purchase from Amazon, 39 per cent cited speed of delivery, and 30 per cent that Amazon is easier to buy from than other retailers.

And when asked what they thought about brands and retailers selling on Amazon, 43 per cent said brands were giving them more choice about how they bought products, and 33 per cent said Amazon allowed them to purchase more conveniently. Brands often worry that Amazon is a discount platform, but only 26 per cent of our respondents expect to find products available for less on the marketplace than in other channels.

That being said, shoppers love a bargain so we expect Amazon Australia to contribute a growing percentage towards Amazon’s global Prime Day sales; estimated to reach US$12 billion this year. In 2020, some of the consumer brands we represent on Amazon Australia saw phenomenal year-on-year sales increases on Prime Day, with a positive lag effect in the weeks following due to the increased traffic and exposure received. 

In 2021, the Australian e-commerce industry is worth over $50 billion, with 16.3 per cent of all retail purchases occurring online. A recent study by Commonwealth Bank noted 21 per cent of consumers are likely to increase online marketplace spending in 2021. Our research suggests Amazon is well placed to attract this additional spend.

Globally we’ve seen phenomenal Amazon growth for brands selling in the Health & Personal Care, and Petcare & Accessories categories. To read the latest report and to find out which categories consumers are most likely to buy from Amazon Australia now and in the future, visit pattern.com/au or download the report here

Pattern is the e-commerce partner of choice for a growing number of consumer brands – acting as its authorised marketplace seller. As well as being one of the largest Amazon sellers in the world, we are also present on Tmall, JD.com, eBay and others. Talk to us at au@pattern.com