Amazon’s Australian ecosystem is continuing to grow, recording an increase in marketplace sellers and sales since the company blocked Australians from shopping on its international sites.
According to analysis from Marketplace Pulse, there were 20,000 third party sellers on Amazon.com.au on August 2, double the number of sellers on the site in mid-March.
The research firm also recorded an increase in marketplace sales in July, off the back of Prime Day and changes to Amazon’s shipping rules, introduced to comply with changes to the GST, that prevent Australians shopping on Amazon.com.
“Since July 1st we are measuring pick up in activity on the marketplace in terms of sales. Forwarding Australian visitors to Amazon.com.au must be contributing to this, as did Prime Day,” Juozas Kaziukėnas, founder of Marketplace Pulse, told Which-50.
Amazon doesn’t disclose its sales figures or Gross Merchandise Volume for individual markets. Marketplace Pulse uses the change in the number of reviews each seller receives to estimate the increase in sales through Amazon’s marketplace. Kaziukėnas argues that tends to mimic sales trajectory as reviews naturally increase as sellers make more sales.
“In short, the marketplace is growing in terms of sellers at the same time as it is growing in overall volume. More sellers means more products in the catalog and better prices for the consumers,” he said.
While its offering in Australia has yet to have a significant impact on the retail landscape, analysts say Amazon has been on a slow build since entering the market, investing in new capabilities like Fulfilment by Amazon (FBA) and its Prime membership service.
“All of this is preparing Amazon for Christmas really well, so once Amazon celebrates their first birthday in Australia, the week before Christmas, it will look very different than it did when it launched — tens of thousands of sellers, close to 100 million products in the catalog, fast shipping thanks to FBA and a growing Prime membership,” Kaziukėnas said.