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Amazon Australia - How to Apply & Sell & More...

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Slightly Modified speech deck I delivered about Amazon Australia to FMCG business people in August 2017. It covers everything from what Amazon is, how big it's become, how it works, Prime, winning the buy box, FBA, how to apply to sell on Amazon Australia and the pro's and con's of Seller Central vs. Vendor Central. I didn't get into Amazon Vendor Express as I don't know if or when they'll launch that here on Amazon Australia. Some slides might not make sense on their own but you'll cope! If not, send me an email, cheers.

Published in: Retail
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Amazon Australia - How to Apply & Sell & More...

  1. 1. Amazon The Disruptor
  2. 2. Today’s Agenda  What is Amazon?  Where is it?  What is it?  How successful is Amazon  Why/which consumers buy online?  Starting out with Amazon  What is Amazon looking for?  How do I make contact?  How do I make Amazon work.  Things to be aware of
  3. 3. About Amazon  Amazon is the world’s biggest online ecommerce marketplace  $61 Billion 2012 Grown to $138 Billion 2016  95 Million Product Searches Per month  Estimated 80 Million Prime Members World-Wide  310 Million Active Customer Accounts World-Wide  There are now over 2 Million 3rd Party Marketplace Sellers which make up almost ½ all sales. “The Third Pillar”  USA, DE, UK, FR, ES, IT, CA, IN, JP, CN, MX, (AU)  Amazon is crushing everything in its path (remember book stores?) and it’s just getting started…
  4. 4.  …and it’s not just traditional retail that’s being smashed…
  5. 5.  Amazon looks like a big company with lots of employees…
  6. 6.  Until you compare it to one of its biggest retail competitors…
  7. 7. Amazon Customers  It is estimated a third of all product searches globally begin on Amazon  There are an estimated 380 million products on Amazon  Amazon customers are extremely “purchase focused”  Amazon’s customers have their credit cards on file.  Amazon’s number 1 priority is, ‘The Customer’.
  8. 8. Amazon Prime Free Shipping on orders over $35 & much more… Amazon’s Prime Membership
  9. 9. Amazon Prime Amazon’s Growth Engine  Customers pay approx. $100 USD per year to join Amazon Prime Membership.  It entitles them to Free 2 Day Shipping on all orders over $35 (but only orders which are Fulfilled by Amazon).  Also Included:  Prime Video  Prime Music  Prime TV  Audible  Prime Now  Games  Prime Photo Storage  And more…  There are estimated to be 80 Million Prime Members Worldwide…
  10. 10. Amazon’s Prime Membership Demographics
  11. 11. Amazon’s Prime Membership Demographics
  12. 12. Not all Amazon Customers are “looking for a bargain”
  13. 13. Why do consumers buy from Amazon? Trust.
  14. 14. How does Amazon work?  In ‘theory’ – 1 product, 1 Amazon listing  Multiple Sellers compete on a single listing
  15. 15. 3 – 4 main types of Sellers  Who’s selling on Amazon?  Amazon itself  Established Brands  Wholesalers & Retailers  Private Labellers
  16. 16. Amazon Basics (Amazon’s own Private Label Brand)  Amazon Basics
  17. 17. Amazon Vendor Central Amazon Buys Products from Brands and sells them on the platform. You do NOT want to compete with Amazon for the Buy Box!
  18. 18. Wholesalers/ Retailers Companies who buy Products from Brands and sell them on Amazon.
  19. 19. Private Labellers Companies / Individuals who brand products as their own. “Alibaba to Amazon”
  20. 20. Private Labellers Companies / Individuals who brand products as their own.
  21. 21. Brands Brands sell their own products on the platform directly
  22. 22. Brands Category Restrictions
  23. 23. Amazon FBA Fulfillment By Amazon
  24. 24. Amazon FBA  You have 2 fulfillment options when selling on Amazon: 1. Ship products that you sell on Amazon yourself (FBM) 2. Opt to use FBA’s services - you can ship your products to Amazon’s warehouses...  Amazon will Store, Pick, Pack and Ship your orders.  Amazon will provide (nearly) all customer service  Amazon will handle returns
  25. 25. Amazon FBA  As a 3rd Party Seller:  You have much higher chance of winning the Buy Box  You can scale your business exponentially from anywhere in the world  You don’t need to have your own warehouse  Your customer service is greatly reduced  You can Fulfil Orders from other channels
  26. 26. Sales Volumes?  What sort of sales volume is occurring?  Quick search for random product ‘coat hangers’ reveals over $1,130,000 worth of coat hangers are being sold on page 1 every month…  (Tool used is Junglescout chrome extension)
  27. 27. Amazon A9 On-Page SEO
  28. 28. Amazon – my small personal presence…
  29. 29. Amazon Australia
  30. 30. Amazon Australia
  31. 31. Amazon Australia  Winners:  Australian Branded Manufacturers, retailers  Australian Distributors with exclusive distribution rights from brands (both domestic & International)
  32. 32. Amazon Australia  Likely Losers:  Retailers who currently stock and compete with other retailers without exclusive brand agreements  Grocery retailers IF Amazon introduces ‘Amazon Fresh’
  33. 33. Amazon Australia  Starting out with Amazon…  Step 1 - Apply
  34. 34. Amazon Australia  Apply
  35. 35. Amazon Australia  Apply
  36. 36. Launch Strategies  It’ll be a land grab at the beginning!  All products will be new and have no reviews (some reviews will come across from the same products on amazon.com if they’re listed there).  New products will have no reviews.  Your job is to get sales and reviews for your products as quickly as possible.  Note: very few if any ‘launch’ or ‘customer email follow up’ services will be around to help you! Much the work will need to be manual…  Launch products in USA or Europe now to get reviews… Why? Amazon Australia
  37. 37. Launch Strategies Amazon Australia
  38. 38. Known Brands Vs. No-name’s.  Small ‘unknown’ brands compete and beat known brands on Amazon all the time…  On the next slide, check out unknown ‘NoCry’ brand’s ‘knee pad’ sales performance, compared to Nike, ASICS, Dewalt… Amazon Australia
  39. 39. Amazon Australia Known Brands Vs. No-name’s.
  40. 40. How do consumers find products to buy on Amazon? They search.
  41. 41. Discovery & Marketing  You need to ‘rank’ your products for search terms  Use promotions (discounts codes) to ‘spike’ Amazon’s algorithm  Get sales through ‘keywords’  Sales velocity through keywords = high rankings.
  42. 42. Discovery & Marketing – Amazon Sponsored Ads
  43. 43. Launch Strategies Amazon Australia
  44. 44. Amazon Vendor Central vs 3rd Party Seller Central  Amazon Vendor Central is Invite only  Sell yourself (3rd Party DiY) or go with Amazon Vendor Central?  Bigger Australian brands will be contacted by Amazon directly to sell to Amazon wholesale. FBA (i.e. DiY) Vendor Central 15% Referral Fee + FBA Fee Est. 50% wholesale price to Amazon Paid every 15 days Approx 60 – 90 days to get paid Need to have a team to manage inventory Need a team to manage wholesale Cost of prep and shipping products to FBA Cost of shipping products to FBA No Access to Amazon Vine Access to Amazon Vine (amazon review) (Almost) Guaranteed MAP (Manufacturer Agreed Pricing) No guarantee Amazon will honour MAP Can be tricky to learn platform and rank your inventory Amazon almost guarantees sales of your products Full control of your product listings Amazon assumes control (they’re bad!) Amazon Australia
  45. 45. What to do if you’re a Wholesaler/Retailer?  Explore Private Labelling popular products you sell  Learn about Amazon’s ‘buy box’ system so you can compete  Learn how to ship your products to Amazon’s FBA Warehouses Amazon Australia
  46. 46. In summary…  Learn about the platform, understand how it works  Embrace the changes that are coming  Work out how to leverage Amazon as a channel for your own success  Do not stick your head in the sand and hope for the best! Amazon Australia
  47. 47. Amazon Australia Resources  Resources  www.junglescout.com – product and competitor analysis  www.jumpsend.com – auto customer email follow-up’s and launch  www.theamazingseller.com – Scott Voelker’s Podcast  www.privatelabelpodcast.com – Kevin Rizer’s Podcast  www.thewholesaleformula.com – How to sell wholesale  www.bobsledmarketingcom – Kiri Masters (USA & Europe agency)  www.amaznsales.com – Australian Amazon consultancy firm (for Australian Businesses)  Me, Chris Thomas: 0414 986 957, chris@christhomas.com.au

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