Many Amazon sellers thinking of expanding globally from the US usually choose the English-speaking markets and call it a day – but when you expand to the UK, Canada, or Australia, it’s important to consider cultural nuances, different communications styles, and region-specific wants and needs. It’s not as easy as sending your keywords through Google Translate and hoping for success. This week, we shine our light on how to sell on Amazon Australia.
Granted, it’s not like you have to translate your content into a foreign language, but Australians have a different way all to their own. That’s why we’ve put together this guide to selling on Amazon Australia. We’ll talk about everything from getting started, to the importance of localization and cultural sensitivity, and even a glossary of words that are different in Australian slang, so it’ll be much easier for you to expand to and sell on Amazon Australia.
Why Should You Sell on Amazon Australia?
Amazon.com.au was launched on the 5th of December, 2017.
Check out the below statistics you need to know about selling on Amazon Australia:
Market Overview
- Online Retail Disruption: According to Rag Trader, Amazon, Shein, and Temu have disrupted the Australian retail market with $8 billion in combined annual sales.
- Growth in Online Spending: Online spending in non-food categories reached $60 billion in the year to March 2024, with a 12% increase in the last six months compared to the previous six months.
Amazon’s Market Presence
- Customer Base Growth: Amazon has doubled its customer base in Australia over the last three years.
- Sales Growth: Year-on-year sales up 6%; 17% growth in the last six months to March 2024.
- Monthly Shoppers: 3.4 million Australians shop on Amazon monthly, contributing to $5.6 billion in annual sales.
- Market Share: Amazon commands nearly 10% of all online retail spending in Australia, ranking among the top five non-food retailers.
- Number of Sellers: There are more than 14,000 Australian businesses that sell in Amazon stores. A lot of these are small and medium businesses.
Demographic Insights
- Audience Composition for Amazon AU:
- Gender: 54.92% male, 45.08% female.
- Age Group: Largest group is 25-34 year-olds.
- Top Categories:
- Video games, consoles, and accessories
- Programming & developer software
- Computers, electronics, & technology
- Fashion
- Adult
Website Traffic Insights
- Global Rank: 623
- Country Rank: 12
- Category Rank (Marketplace): 1
- Total Visits: 56.9M
- Bounce Rate: 38.45%
- Pages per Visit: 6.93
- Average Visit Duration: 4 minutes 25 seconds
Compared to other Amazon markets, Amazon.com.au is a standalone Amazon marketplace, which means it functions independently. This means it operates outside of the unified account that covers Amazon US, Canada, and Mexico, and the Amazon Europe circuit.
Out of these countries, which also includes India, Japan, the UAE, and Singapore, Amazon.com.au ranks 4th, behind Japan, India, and Brazil, respectively.
Amazon justifies expansion to Australia:
- Reach millions of new customers: By selling on the platform, you can make your products easily accessible to millions of Australian customers, expanding your global customer base.
- Capitalize on a growing market: Take advantage of a rapidly expanding marketplace. In 2019, Amazon.com.au saw a +52% year-over-year growth in average monthly unique visitors, and ecommerce sales in Australia grew by +3.8%. Benefit from this growth by listing your products in over 30 categories.
- Let Amazon handle the logistics: Utilize Amazon’s advanced logistics, powerful tools, and top-tier customer service to streamline international selling, allowing you to focus on scaling your business.
- Gain a first-mover advantage: Compared to the US, Amazon’s Australia marketplace often has fewer sellers in each category, presenting more opportunities for you. Be one of the first sellers in your category and take advantage of this unique position.
It’s quite possible the product you’re selling will resonate with the Australian customers. Read on to find out more about how to sell on Amazon Australia.
Getting Started: Sell on Amazon Australia with a Seller Account
If you’re already selling on Amazon, like Amazon US or UK, you will need to create a separate seller account for Amazon.com.au, as Amazon Australia does not currently offer linked accounts between different marketplaces. However, you do not need a separate business license specifically for Amazon.com.au, but you will need to provide the following information to set up your Australian seller account:
- Business Name and Address
- Owner’s Name
- Credit Card Details (internationally chargeable)
- Australian Bank Account Details (for receiving payments)
- Official Identification and a Bank Statement
Setting up this separate account allows you to manage your listings and sales specifically for the Australian market, helping you reach a new audience with tailored strategies.
Now, you don’t necessarily need an Australian Business Number (ABN), but there are benefits to doing so:
- Registering for GST: An ABN is necessary for GST registration.
- GST Claims: Claim back GST on local purchases, including Amazon fees.
- Turnover Requirement: Mandatory for businesses with $75,000+ annual turnover.
- Banking: Required for opening a bank account in Australia.
- Commercial Dealings: Enhances business credibility with customers and suppliers.
- Withholding Tax: Avoids 47% withholding tax on payments without an ABN.
Choosing the Right Selling Plan for Your Amazon FBA Business
Amazon sellers have access to either an individual or professional seller account. Choose the right one to suit your objectives. Here’s the data for the US market, which also applies to Amazon Australia:
Projected Sales Volume
- Individual Plan: Ideal for sellers with less than 40 units per month.
- Professional Plan: Suitable for sellers planning to sell more than 40 units per month.
Subscription Fees and Transaction Costs
- Professional Plan: $39.99 monthly subscription fee.
- Individual Plan: No monthly subscription fee but a $0.99 fee per sale.
- Example: Selling 41 products incurs $40.59 in fees for individual sellers versus $39.99 for professional sellers.
Access to Restricted Categories
- Professional Sellers: Can sell in an additional 10 restricted categories, such as Automotive, Fine Jewelry, Grocery, and Watches.
- Individual Sellers: Limited to 20 categories.
Buy Box Eligibility
- Professional Sellers: Eligible to win the Buy Box, which accounts for 82% of purchases.
- Individual Sellers: Not eligible, making the purchase process longer for buyers.
Advertising Options
- Professional Sellers: Can create sponsored listings and use PPC advertising to boost product visibility.
- Individual Sellers: Cannot advertise on Amazon.
Additional Professional Seller Features
- Inventory management through feeds, spreadsheets, and reports.
- Ability to set shipping fees for non-media products.
- API integration for increased selling efficiency.
- Create promotions, including free shipping for FBM offers.
- Bulk listings using inventory files.
- Calculate US sales and use taxes on orders.
- Grant user permissions and account privileges to other users.
Questions to Ask Yourself:
- Will you sell more than 40 products per month?
- If yes, the professional plan is more cost-effective.
- Do you want to sell in restricted categories?
- The professional plan offers access to additional categories.
- Do you want to win the Buy Box?
- Only professional sellers are eligible.
- Do you want to advertise your products?
- Professional sellers can create sponsored listings.
Benefits of the Individual Seller Plan
- Ideal for selling a few extra items or testing the waters on Amazon.
- No commitment to a monthly fee.
- Access to Amazon’s seller dashboard and forums.
Benefits of the Professional Seller Plan
- Cost-effective for selling more than 40 products per month.
- Access to restricted categories, advertising, and advanced selling tools.
Navigating Seller Central for Amazon FBA in Australia
Here’s information you might already know about Amazon’s Seller Central dashboard – but we’re providing you with a helpful overview just in case.
The Seller Central dashboard is your primary hub for managing your Amazon business. Whether you’re new to selling or an experienced seller, understanding the dashboard is crucial for effectively running your operations. Here’s a brief introduction to what you’ll find in Seller Central:
OVERVIEW
The dashboard provides an at-a-glance view of your account health, sales performance, and key metrics. From here, you can easily navigate to various sections to manage your inventory, orders, and account settings.
KEY SECTIONS
- Home: This is your starting point, featuring important notifications, updates from Amazon, and quick links to frequently used tools.
- Inventory: Manage your product listings, check stock levels, and update product details.
- Orders: View and manage your orders, including shipping, returns, and customer service requests.
- Advertising: Access tools for creating and managing your Amazon advertising campaigns.
- Reports: Generate detailed reports on sales, payments, and performance metrics to monitor your business growth.
- Performance: Track your seller performance metrics, customer feedback, and policy compliance to ensure you maintain a healthy account.
Essential Tools and Resources for Managing Your Amazon Business
Amazon Seller Central is packed with tools and resources designed to help you manage and grow your business efficiently. Here are some essential ones you should be familiar with:
Inventory Management
- Inventory Reports: Get detailed reports on your inventory levels and performance to help you make informed stocking decisions.
- Listing Tools: Easily add new products, update existing listings, and manage variations through bulk uploads or individual updates.
Order Management
- Order Reports: Access comprehensive reports on your orders, including pending, shipped, and cancelled orders.
- Fulfillment Options: Choose between Fulfillment by Amazon (FBA) and self-fulfillment, and manage your shipping settings accordingly.
Advertising and Promotions
- Sponsored Products: Create pay-per-click (PPC) campaigns to boost the visibility of your products in search results.
- Coupons and Deals: Set up promotional offers and discounts to attract more customers and increase sales.
Performance Tracking
- Account Health Dashboard: Monitor key performance indicators such as order defect rate, late shipment rate, and customer feedback.
- Customer Feedback: Manage and respond to customer reviews and feedback to improve your seller rating and build trust.
Reporting and Analytics
- Sales Reports: Generate reports on your sales performance to identify trends and opportunities for growth.
- Advertising Reports: Analyze the effectiveness of your ad campaigns and adjust your strategies for better results.
Customer Service
- Messaging System: Communicate directly with customers to resolve issues and answer queries.
- Returns Management: Handle returns and refunds efficiently to maintain customer satisfaction.
By leveraging these tools and resources, you can streamline your operations, enhance your product listings, and ultimately grow your Amazon business. Make sure to explore and familiarize yourself with each section of Seller Central to take full advantage of the capabilities that Amazon gives.
Pricing Strategies for Selling Your Products on Amazon Australia FBA
Setting competitive prices is crucial for attracting customers and maximizing sales on Amazon Australia.
Yahoo! Finance reported in 2023 that the rising cost of living was putting a dampener on Aussie lifestyles, but there were a couple of luxuries that Australian customers wouldn’t give up, such as socializing, alcohol, takeaway, and coffee. So, the question is, when you list a product on Amazon, is it a product that’s likely to be affected by stinginess caused by the cost of living, or are you providing products that Australians deem a “basic luxury?”
Amazon offers several pricing tools to help you stay competitive and ensure your products are priced optimally. Here’s how you can make the most of these tools:
Amazon’s Pricing Tools
- Automate Pricing
- How it Works: Automate Pricing allows you to automatically adjust your prices based on rules you set. This tool helps you stay competitive without constantly monitoring prices manually.
- Setting Up: Define pricing rules based on your competitors, desired profit margins, or specific market conditions. For instance, you can set your price to always be a certain percentage lower than the lowest-priced competitor.
- Benefits: Saves time and ensures your prices remain competitive, helping you win the Buy Box more frequently.
- Pricing Health
- Overview: Pricing Health gives you insights into how your prices compare to the market. It shows you the pricing status of your products and identifies those that are priced too high or too low.
- Usage: Use this tool to adjust your prices to align with market trends and competitor pricing. It helps you understand the competitiveness of your pricing strategy at a glance.
- Match Low Price
- Functionality: The Match Low Price feature lets you match the lowest price on Amazon for the same product. This is particularly useful for products where price competition is high.
- Implementation: You can apply this feature to individual listings or in bulk, ensuring that your prices remain attractive to potential buyers.
Tips for Monitoring Competitors and Adjusting Prices
Staying ahead of your competitors requires continuous monitoring and timely adjustments to your pricing strategy. Here are some tips to help you effectively monitor competitors and adjust prices:
- Regular Market Research
- Importance: Regularly research your market to understand pricing trends and competitor strategies. This helps you make informed decisions about your own pricing.
- Tools: Use Amazon’s market research tools and third-party software to gather data on competitor prices, sales rankings, and customer reviews.
- Set Competitive Pricing Rules
- Dynamic Rules: Create dynamic pricing rules that adjust based on competitor actions and market conditions. For example, set rules to lower prices during high-demand periods or when competitors reduce their prices.
- Flexibility: Ensure your pricing rules are flexible enough to adapt to sudden changes in the market, such as new product launches or seasonal promotions.
- Monitor the Buy Box
- Significance: Winning the Buy Box is crucial for increasing sales. Monitor the Buy Box price and adjust your pricing strategy to stay competitive.
- Strategies: Use automated repricing tools to adjust your prices dynamically, ensuring you have a competitive edge without sacrificing profitability.
- Analyze Sales Data
- Insights: Regularly analyze your sales data to identify trends and patterns. Understand which pricing strategies are working and which need adjustments.
- Adjustments: Use insights from sales data to refine your pricing rules and strategies, ensuring they align with your business goals.
- Respond to Competitor Actions
- Proactive Approach: Stay alert to changes in competitor pricing and respond quickly. Use automated alerts and notifications to keep track of competitor activities.
- Strategic Adjustments: Make strategic price adjustments based on competitor actions, ensuring your products remain attractive to customers.
By leveraging Amazon’s pricing tools and following these tips for monitoring and adjusting prices, you can maintain a competitive edge on Amazon Australia. Competitive pricing not only attracts more customers but also helps you maximize your sales and profitability in the dynamic Amazon marketplace.
Inventory Management for Amazon FBA Australia
Fulfillment Options When You Sell on Amazon Australia: FBA vs. Self-Shipping
Let’s explore the two different fulfillment options when you sell on Amazon Australia. Either you go for FBA (fulfilled by Amazon) or you fulfill orders yourself.
Australia has fulfillment centers in New South Wales, Queensland, Victoria, Western Australia, and South Australia.
Here’s a table comparing FBA or FBM (fulfilled by Merchant) to help you choose which one is best for you:
Criteria | Fulfillment by Amazon (FBA) | Fulfillment by Merchant (FBM) |
---|---|---|
Storage & Handling | Amazon handles storage, packing, and shipping | Seller is responsible for storage, packing, and shipping |
Prime Eligibility | Products eligible for Amazon Prime, attracting more customers | Products not eligible for Prime unless using Seller Fulfilled Prime (SFP) |
Shipping Speed | Faster shipping times due to Amazon’s logistics network | Shipping speed depends on the seller’s logistics capabilities |
Customer Service | Amazon provides 24/7 customer service and handles returns | Seller must manage customer service and returns |
Fees | FBA fees include storage, fulfillment, and long-term storage fees | No FBA fees; seller manages their own shipping costs |
Sales Boost | Higher chance of winning the Buy Box | Lower chance of winning the Buy Box |
Inventory Management | Amazon manages inventory with real-time updates | Seller must manage their own inventory |
Scalability | Easily scalable as Amazon handles logistics | Scalability depends on the seller’s logistics capacity |
Initial Setup | Requires shipping inventory to Amazon’s fulfillment centers | No need to send inventory to Amazon, can fulfill from own location |
Control | Less control over the fulfillment process | Full control over the fulfillment process |
Return Handling | Amazon handles returns and customer service | Seller must handle returns and customer service |
International Expansion | Simplifies international selling through Amazon’s global network | More complex international logistics for the seller |
Branding | Limited branding options as Amazon packaging is used | Full control over packaging and branding |
Cost Management | Predictable costs but can be higher due to FBA fees | Potentially lower costs but more variability in shipping expenses |
Sell on Amazon Australia with Localization and Effective Product Listings
- Values and Equality
- Australians value equal rights and opportunities.
- Supportive of publicly funded healthcare and education.
- Multicultural society with diverse religious practices.
- Open-hearted and open-minded culture.
- Indigenous Heritage
- Home to the oldest living civilization, Aboriginal and Torres Strait Islander people.
- Strong connection to land, family, and community.
- Cultural expressions through art, stories, song, and dance.
- Unique Language
- Australian English includes unique slang and abbreviations.
- Nicknames are common and often affectionate.
- Love for Drinking
- High consumption of alcohol, ranking third globally.
- Popular past-time with a culture of social drinking and saying “Cheers!”
- Passion for Food
- Multicultural cuisine due to diverse migrant population.
- Wide variety of fresh produce available year-round.
- Enjoys a mix of international and local dishes.
- Sports Enthusiasm
- Strong passion for sports like Rugby, AFL, Tennis, and Cricket.
- Popular to attend live games and major events like the Australian Open.
- Beach Lifestyle
- Known for beautiful beaches; 85% live within 50km of the coast.
- Beach activities like swimming, sunbathing, and people-watching are common.
- Cultural and Historical Museums
- Numerous museums showcasing Aboriginal and Australian culture.
- Museums offer insights into cultural, scientific, artistic, and historical aspects.
- Vibrant Art Scene
- Rich history of creative expression, from early settlers to contemporary artists.
- Aboriginal art celebrated for storytelling and cultural significance.
- Supported by government grants and events like Vivid Sydney and Brisbane Street Arts Festival.
- Cultural Diversity
- Almost a third of the population was born overseas.
- 23% speak a language other than English at home.
- Over half a million international students contribute to a vibrant community.
- Personal and Religious Freedom
- Encourages respect for diverse political and religious views.
- Safe environment for practicing various faiths.
- Politically stable with a transparent electoral process.
- High Standard of Living
- Above-average quality of education, healthcare, and infrastructure.
- Low crime rates and secure public spaces.
- Clean, green environment with strict environmental laws.
- Leisure and Lifestyle
- Popular activities include beach outings, park lunches, and café culture.
- Sports and outdoor activities like hiking are common.
- Thriving arts and culture scene with museums, galleries, and theaters.
- Business Culture and Etiquette
- Professional norms are casual but value directness.
- Flat hierarchy in businesses; junior staff have access to management.
- High-stakes bargaining techniques not favored in negotiations.
- Social Etiquette
- Laid-back and relaxed culture valuing authenticity.
- Informal social events like backyard barbecues.
- Humility and a sense of humor appreciated; status boasting frowned upon.
- Arts and Entertainment
- Rich culinary diversity influenced by international and Anglo-Celtic heritage.
- Australian art explores themes from dominating landscapes to celebrating Aboriginal culture.
- Active participation in sports and appreciation for local music and cuisine.
Statista reports that the most popular categories for shopping were Clothing (47%) and Shoes (30%), followed by food & beverages and delivery (25%), cosmetics & body care (24%), and books, movies, music, and games, including downloads (22%).
Sell on Australia with Effective Amazon Product Listings
Given these cultural and communication differences, localization is imperative when you decide sell a product on Amazon Australia. It’s not like you have to translate your Amazon listing into a different language, even if Aussie slang sometimes feels like a language of its own, and the English spoken in Australia is different from that in Canada, the US and UK!
Nevertheless, knowing these cultural nuances will help you appeal to your demographic better. We’ve talked about informal vs. formal tone of voice before, especially in places like Germany where the vocabulary differs depending who you’re speaking to. Luckily, Australians are known to be relatively laid-back and casual, so being overly respectful won’t really matter when it comes to conversion.
However, it makes sense to localize a little when expanding to Australia. You don’t need to go overboard and use slang in every sentence of your product listings on Amazon Australia, but do stay sensitive to how your Aussie customers call different things. What Americans call “chips” are actually “potato crisps” and “chips” to Australians are “French Fries” to Americans!
That’s why it’s so crucial to generate new keywords for your Australian product listings. For all you know, your product in Australia could be called something entirely different. If you plan to take advantage of the low competition and large potential of this market, it’s worthwhile to include the correct SEO terms.
Consider tailoring your images and A+ to the Aussie market, as well. Remember, they’re a laid-back, friendly, outdoorsy people. What would appeal to a sophisticated customer in the USA might actually be seen as stuffy to the casual Australians! Make sure to do your research first by getting to know your target audience before heading straight into optimization.