Webinar: How Amazon is Disrupting Australian Retail

Kate Ryan

June 24, 2024

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Over the past year, Amazon has firmly established itself as Australia’s leading markeplace giant, continually expanding into new sectors and enhancing its customer experience. As Amazon’s influence grows, other platforms like TEMU and Shein are also gaining ground locally, offering diverse products and competitive prices.

Our 2024 Marketplace Consumer Trends Report, now in its sixth year, provides valuable insights into shifting consumer behaviors and marketplace adoption. In the recent webinar “How Amazon is Disrupting Australian Retail,” Pattern’s marketing and e-commerce experts delve into the choices brands face when entering Amazon’s rapidly expanding landscape. Should they opt for the 1P (First-Party) model or the 3P (Third-Party) seller model?

For more detailed insights, watch our webinar here.

A Focus on Amazon

What draws consumers to Amazon over other retailers? It’s the robust strength and unique selling proposition (USP) of Amazon’s brand that sets its products apart from the competition. Amazon provides value-driven shopping experiences, evidenced by the 11% of consumers making purchases on the platform 14 times or more, surpassing many Direct-to-Consumer (D2C) retailers.

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Additionally, the platform saw a 59% increase in consumers initiating product searches, aligning with the U.S. trend where 60% of shoppers prioritize Amazon as their first search destination over search engines.

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Growth Categories

With more shoppers turning to Amazon, it’s no surprise that the platform has seen strong sales growth across nearly all product categories over the past year. While Books and eBooks remain the most popular products, emerging categories with the largest annual growth include:

  • Vitamins and Supplements (+43%)
  • Skincare & Makeup (+40%)
  • Food & Pantry (+38%)
  • Sports, Fitness, and Outdoors (+33%)

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1P vs 3P Seller Strategies

Brands considering expansion on Amazon often ponder the best strategy: 1P or 3P? The crucial distinction between the two lies in retail pricing authority. In the 1P model, Amazon’s algorithms adjust prices dynamically. In contrast, 3P sellers have autonomy over pricing, offering greater control. This distinction underscores the strategic nuances of each approach.

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Choosing between 1P and 3P depends on factors such as product pricing and characteristics. The 1P model might suit lower-priced or bulkier products, whereas the 3P model offers control and growth potential, especially when considering Amazon’s commissions and FBA fees.

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Expand on Amazon with Pattern

Pattern, a global e-commerce accelerator, is the #1 Amazon seller worldwide. Partnering with an accelerator like Pattern, which has the resources, technology, and global capabilities, can enable internal teams to transition from day-to-day operations to focusing on strategy and planning.

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As a 3P seller, Pattern acts as a trusted partner to hundreds of brands, investing in their business success. Pattern also provides partners with access to offline and B2B distribution networks, ensuring comprehensive support for growth on Amazon.

By leveraging the expertise of Pattern, brands can navigate Amazon’s complex landscape more effectively, ensuring their place in the competitive Australian retail market.

To learn more about working with Pattern for your marketplace business, get in contact with us now.

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