Damon Mcknight
Amazon Australia is the company's fastest-growing marketplace relative to its size. Amazon Australia launched in 2017, and in the two years since, it has seen a 1500% increase in revenue. It is believed that Amazon now accounts for 10% of all online retail spend in Australia, with nearly 8 million Aussies shopping on Amazon. Amazon Prime Day 2025 saw the retailer record 19% growth, acquiring 1.1 million new customers in the year leading up to June 2024. Amazon's online sales in Australia are estimated to account for around 20% of all internet sales in the country by 2026.
| Characteristics | Values |
|---|---|
| Amazon.com.au ranking in Australia | #10 |
| Amazon.com.au monthly visits | 58 million |
| Amazon Australia's estimated share of total online sales in 2026 | 20% |
| Amazon Prime subscriber growth in 2023 | 40% increase |
| Number of Amazon Prime members in Australia | 4 million |
| Top product category purchased on Amazon.com.au | Books and eBooks |
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What You'll Learn
Amazon's market share in Australia
Amazon Australia, which was launched in 2017, is the company's fastest-growing marketplace relative to its size. Within 24 hours of its launch, Amazon.com.au boasted more than 2,000 third-party sellers, a number that grew to 5,000 within a month, with an average of 55 new sellers joining each day. Amazon Australia's revenue in 2018 was $292.3 million, up from $17.3 million the previous year, representing a 1500% increase.
As of 2024, Amazon is believed to account for 10% of all online retail spending in Australia, and boasts the largest online audience of any retailer in the country. Amazon's Prime Day in 2024 saw the company record 19% growth, acquiring 1.1 million new customers in the year leading up to June 2024. A survey conducted in the 12 months to July 2024 found that 54% of respondents had purchased from Amazon in the previous 12 months, compared to 41% for eBay, the second most popular online retailer in Australia.
Amazon Australia has nearly 8 million customers, with 4.1 million of these owning a Prime subscription. Shoppers on the platform purchase an average of six times a year, a frequency only rivalled by Kmart, which has an average purchase frequency of 7.5. Books, small electrical goods, clothing, computers, and accessories are the top-selling categories on Amazon Australia.
The COVID-19 pandemic led to extensive limitations to in-store shopping in Australia in 2020 and 2021, resulting in a significant increase in the country's e-commerce market. The market growth slowed in 2022, but long-lasting changes to consumer behaviour were observed, with a considerable number of customers now actively engaging in online buying.
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Amazon's competition in Australia
Amazon's expansion into Australia has brought about a significant shift in the country's retail landscape, with the company becoming a formidable competitor to local retailers. Amazon's rapid growth in Australia has been described as a "major shift in consumer behavior," posing a challenge to traditional retail giants. The company's focus on enhancing its logistics network and technology to achieve faster delivery times has been a key factor in its success.
Amazon's growing logistics capabilities, job creation, and support for local communities have contributed to its success in Australia. Its subscription service, Amazon Prime, has been a significant driver of growth, with memberships in Australia accounting for $155 million in 2021, up from $35.4 million in 2019. Amazon's aggressive pricing strategies and expanded offerings, including its own products and those of small local retailers, have intensified competition in the market.
Amazon's top competitors in Australia include eBay, Big W, Kmart, AliExpress, Catch, Kogan, Myer, Target, Etsy, and Temu. These competitors offer a diverse range of products, ensuring consumers have alternatives to Amazon. eBay, in particular, is currently the market leader in Australia, attracting 75.7 million visitors in April compared to Amazon's 10 million.
Local electronics retailers such as JB Hi-Fi and Harvey Norman are also expected to be significantly impacted by Amazon's presence. Amazon's expansion has brought both challenges and opportunities to the Australian market. While local retailers face stiffer competition, the increased competition can drive innovation, better prices, and improved services for consumers, ultimately stimulating growth in the retail sector.
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Amazon Prime in Australia
Amazon Prime is a subscription service that offers free and fast shipping, the Prime Video streaming service, Prime Music, Prime Gaming, Prime Reading eBooks, and more. The service launched in Australia in 2018 and has since become the biggest online shopping destination in the country.
Amazon Prime offers a range of benefits to its Australian subscribers. One of the key perks is free expedited delivery, with no minimum purchase on Prime-eligible orders. This includes free international delivery on eligible orders from the Amazon Global Store on amazon.com.au. Prime members can also take advantage of exclusive deals all year round, including the infamous Prime Day deals.
In addition to the shopping benefits, Amazon Prime Australia also offers a range of entertainment options. Prime Video provides access to popular TV shows and movies, including Amazon Originals such as "The Grand Tour" and "The Marvelous Mrs. Maisel". Prime Video supports 4K streaming and offline viewing, and can be viewed on up to three devices simultaneously. Aside from video content, Prime members also get access to Prime Music, with ad-free tunes and exclusive albums, as well as Prime Gaming, which offers free games and gaming benefits.
For readers, Amazon Prime Reading provides access to a range of eBooks, with discounts on newly released titles through Amazon First Reads. Prime members can also take advantage of other benefits such as free games and a free monthly Twitch channel subscription. The subscription costs $9.99 per month or $79 per year, with a 30-day free trial available.
Overall, Amazon Prime has become a popular service in Australia, offering a wide range of benefits and features that cater to online shoppers, entertainment enthusiasts, and avid readers alike. With its combination of free shipping, exclusive deals, and entertainment options, Amazon Prime has established itself as a significant player in the Australian market.
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Amazon's advertising in Australia
Amazon Australia, which was launched in 2017, is the company's fastest-growing marketplace relative to its size. It has been projected that Amazon accounts for 10% of all online retail spending in Australia, with the largest online audience of any retailer. Amazon Australia has nearly 8 million shoppers, with 4.1 million owning a Prime subscription.
Amazon has one of the most successful retail media networks globally, commanding approximately 80% of the retail ad market in the US. Amazon Ads should be a key consideration for Aussie retailers and CPGs. Amazon offers the option to promote products directly, where brands can create 'Lightning' and '7 Day Deals' that appear on the Amazon deals page. You can also sponsor your products to appear at the top of search feeds or run pay-per-click (PPC) ads to help your products reach more customers. PPC campaigns can help target new shoppers, re-engage existing shoppers, or improve brand awareness. Amazon's PPC campaigns can be organised using audience segmentation, which allows different types of audiences to be reached. Amazon also provides an Ads report with all the data consolidated so that data-driven decisions can be made when creating new campaigns or optimising existing ones.
Amazon marketing agencies in Australia, such as Megaphone, SalesDuo, Merge, and One Egg, can help businesses maximise their Amazon potential. These agencies offer a range of services, including keyword analysis, Amazon SEO optimisation, strategic planning, market research, and optimised listings.
Amazon also provides resources to help businesses optimise their advertising strategies, such as understanding budget and bidding rules and how they can improve campaign performance. Amazon's DSP predictive AI model is another tool that can be leveraged to drive ad performance for Brand+ and Performance+ campaigns.
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Amazon's sales in Australia
Amazon Australia, which launched in 2017, is the company's fastest-growing marketplace. Within 24 hours of its launch, Amazon.com.au boasted more than 2,000 third-party sellers, a number that grew to over 5,000 within a month. Amazon Australia's revenue grew from $17.3 million in 2017 to $292.3 million in 2018, a 1500% increase. By 2021, the site had nearly 14,000 sellers, and in May 2024, it was reported to have the largest online audience of any retailer in Australia.
While Amazon Australia has been extremely successful, it still faces competition from eBay, which launched its eBay Plus subscription service in Australia in 2021. In addition, eBay banned its Australian sellers from using Fulfillment by Amazon (FBA) to fulfill orders, in an attempt to protect its market dominance.
According to research by Jungle Scout, 56% of shoppers in the US start their product searches on Amazon, and a similar trend is expected to emerge in Australia over time. Currently, 7.9 million Australians shop on Amazon, with 4.1 million of those owning a Prime subscription. Books, small electrical goods, clothing, computers, and accessories are the top-selling categories on Amazon Australia.
Amazon Australia offers various deals and promotions to boost sales, including 'Lightning' and '7 Day Deals', as well as sponsored products and pay-per-click ads. The platform also provides opportunities for third-party sellers to promote their products and reach a wider audience.
Some of the popular products on Amazon Australia include electronics, beauty and skincare, home improvement, and clothing. Amazon's Prime Day sales are also a significant contributor to the company's overall sales in Australia, with the event attracting new customers and exclusive deals for Prime members.
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Frequently asked questions
Amazon is believed to account for 10% of all online retail spend in Australia, with 7.9 million Australians shopping on the platform (almost 30% of the population).
Amazon Australia is Amazon's fastest-growing marketplace relative to its size, having added more new sellers than Japan, Mexico, Brazil and China in 2021.
Books, small electrical goods, clothing, computers and accessories are the top-selling categories on Amazon Australia.
Amazon Australia has the largest online audience of any retailer in the country, with 14.3 million visitors in December 2020. However, this is fewer visitors than eBay Australia, which had 75.7 million visitors in April 2021.
4.1 million Australians own a Prime subscription.
