The market with the most growth potential in the world-Amazon Australia
The Australian site is a new site launched by Amazon in 2017. Some sellers have already settled in 2018, but because the platform was not yet available in the early stage It’s in the promotion period, so third-party sellers don’t get much traffic. Precisely because it is a new site, the growth potential of the Australian site is huge. The Australian website address is www.amazon.com.au.
Currently, eBay has the largest share of the Australian online shopping market. Compared with the US market and the European market, the Australian market has many advantages.
1. Countries where English is the mother tongue
Cross-border e-commerce often faces language difficulties. Selling products in different countries requires different languages, such as in the European market. The products sold involve the languages of several countries such as Germany, France, Italy, and Spain. The United States, Canada, and Mexico are English-speaking countries. Unfortunately, the U.S. market is highly competitive, making it more difficult for new sellers to operate. Australia is one of the few markets with less competition and a smaller number of Chinese sellers.
2. The geographical location is in Oceania, very close to China
The geographical distance is directly related to the seller’s operating costs. The price of air freight to the United States is more than 30 yuan/kg, and the transportation time is 3 to 10 days. Although a few express delivery channels can arrive in 3 days, the price is as high as 38 yuan/kg. The cost of air freight to Australia is about 30 yuan/kg, but it can be signed for within 7 days. This indirectly increases the capital turnover rate of Amazon sellers, which can be understood as reducing costs.
3. Australia is a relatively wealthy country
Australia has a high standard of living per capita and is willing to accept higher-priced imported products. Australians have received higher education since childhood. The locals are relatively wealthy, live a comfortable life, and often pursue pleasure and enjoyment in life. According to sellers who have operated eBay and Amazon’s US site in Australia, the number of orders and growth momentum in the Australian market is no less than that of the US market.
4. China is Australia’s largest trading partner
As a cross-border e-commerce seller, Australia’s imports from China, or China’s exports to Australia, are our focus. In the field, Australia’s main imports from China are mechanical and electrical products, textiles, furniture and toys, etc., accounting for more than 62% of Australia’s imported products, and it is heavily dependent on China’s imported goods.
Cross-border e-commerce sellers can directly target Australian consumers through the platform’s B2C retail trade
5. Australia Post is inefficient
Australia’s land area is 761 Thousands of square kilometers and a total population of less than 25 million, it can be said to be a vast land with sparsely populated areas. People who have lived in Australia should feel that the efficiency of the local postal service is very low. Domestic delivery times sometimes take as long as half a month. If Amazon can quickly launch FBA delivery services in Australia and achieve delivery times such as 2-day delivery and 4-day delivery, I believe it will establish a strong competitive barrier to the eBay platform and be a blessing to Australians. There are about 1.2 million Chinese in Australia, and this group of people is very convenient for Chinese sellers to carry out their operations.