Our own Alex Lawson is now working for MinsterFB in Australia. She’s there to work with local brands and European brands interested in expansion into Amazon in Australia. As Alex has developed our understanding of this fast-expanding opportunity she’s sent us these insights.
Distribution
The first big development is that Amazon have extended their next day delivery promise to a much bigger catchment area. Next day delivery is now available in Brisbane, Geelong, Gosford, Newcastle and Wollongong as well as Sydney and Melbourne. This follows an investment of more than $5bn by Amazon in growing its Australian distribution network. In late 2025 a new fulfilment centre in Craigieburn will open, extending one-day fulfilment to Adelaide as well.
In addition, Amazon has introduced its Delivery Service Partner program to Australia. This enables local entrepreneurs to launch their own delivery businesses to execute Amazon’s ‘last mile’ logistics from local delivery stations to shoppers. The program provides training, technology, services, vehicle leasing and insurance to those who aspire to run their own delivery business, regardless of their logistics experience. The program has a safety-first orientation, and the co-branded vehicles are equipped with safety technology. Programs like these enable Amazon to scale rapidly and meet local demand.
Advertising
The advertising offering in Australia is well developed with both Amazon Sponsored Ads and Amazon DSP both in play. Amazon Sponsored Ads enable Australian advertisers to target shoppers based on their shopping missions on a cost per click basis. The Amazon DSP platform allows advertisers to target shoppers on Amazon, IMDB and Twitch, based on lifestyle, shopping and browsing habits and recent product views etc. With the Amazon DSP this functionality extends to sites beyond those owned and operated by Amazon. Advertisers can also serve ads on top-performing sites in the Amazon Publisher Direct network.
Australian Advertisers using the DSP platform can also access Amazon Marketing Cloud. This is Amazon’s secure, privacy-safe clean room solution. AMC allows advertisers to perform analytics and build audiences with a sophistication that goes beyond what is available on the individual advertising platforms.
Scale
Amazon’s monthly site traffic has leapt into the lead ahead of Ebay and dwarfs the likes of Temu and Shein. According to research conducted by e-commerce accelerator Pattern for their Marketplace Consumer Trends Report 2024, 63% of Australians now plan to purchase from Amazon. The report suggests that Amazon is likely to achieve the highest growth rate of any Australian marketplace in 2024. The report also suggests that Amazon is particularly appealing to high earners, with 80% of households in the $200k bracket preferring Amazon.
The scale we’ve been able to achieve for our existing Australian clients has been highly connected to the awareness of those brands in the Australian market. Those with an existing retail presence initially achieve higher sales levels than those that are new. However, we are finding that the growth levers work in exactly the same way. If we create compelling, high-converting listings and then drive the right kind of traffic with advertising, sales grow.
Our Take on Amazon in Australia
When we began working with brands to sell their products on Amazon 13 years ago, Amazon in the UK was significantly smaller than Amazon in Australia now. The brands that invested at that early stage have been able to ride the Amazon growth curve. Those that were already successful in bricks and mortar were able to defend against new entrants on Amazon. Those that didn’t already have a strong footprint in traditional retailers have been able to leverage their Amazon success to secure retail listings.
The specific logistical challenges of achieving national distribution in Australia make Amazon even more appealing to brands looking to succeed there. Amazon will secure and expand its distribution base, replicating its ‘cheapest-to-serve’ model that has been so successful elsewhere. The time to invest in your Amazon Australia business is now!