According to a report by Marketplace Pulse, Amazon.com.au now has over 10,000 third-party marketplaces sellers on the site.
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Since January, when the marketplace had about 5,000 sellers, Amazon signed up an average of about 80 sellers per day to reach the 10,000 seller milestone.
The report further estimates that Amazon is expected to reach 50,000 third-party marketplace sellers by the end of 2018.
However, that would mean the company needs an average sign up rate of 140 new sellers per day, a significant increase over the current pace. Considering Amazon.com.au charges a monthly maintenance fee to sellers, this estimate appears a bit ambitious.
In the U.S., Amazon offers a free seller tier that includes a higher per order transaction fee. This results in many dormant sellers that sign up for the service, but never actually list products.
Therefore, Amazon sellers in Australia are likely far more active sellers as they are not going to pay a maintenance fee if they are not using the service.
Regardless, two main factors will aid in a continuing increase of the daily sign up rate of new sellers on Amazon Australia.
- Amazon.com.au just launched Amazon FBA in Australia. While it still only operates one warehouse in the country, a second or possibly third facility may go operational by the end of 2018.
- Amazon Prime is not launched yet in Australia, but many observers believe it will happen sometime this year. Currently, Amazon shoppers receive free shipping if their order exceeds $49. With the Prime Membership, Amazon is expected to bring free shipping to virtually any order size and offer expedited shipping services to many parts of the country.
Amazon FBA and Prime Key to Seller Growth
In just over one month, over 1,000 third-party marketplace sellers already started storing some of their inventory in the Amazon FBA program.
This is a significant factor as during the first two months, marketplace sellers on Amazon appeared to struggle with getting products to their customers in a timely fashion.
As a result, during the first two months, about 12 percent of seller reviews were negative.
However, since the launch of Amazon FBA, the number of negative reviews has dramatically decreased to about 6 percent.
There could be other factors for the decrease. Sellers are now more familiar with the marketplace and its operation, and third-party vendors started to offer shipping and inventory management integrations with Amazon.com.au.
However, once Prime launches, buyers will receive even better service from the company, including from products sold through Amazon FBA, and the overall satisfaction rate by shoppers should further increase.
Amazon is taking Australia by storm, and there is no doubt that the marketplace provides an excellent opportunity for sellers.
Are you in Australia and using Amazon now to sell your products? We’d love to hear from you. Head over to our Facebook Discussion Group or use the comments section below.
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