Lexi Webster
Amazon is an American multinational technology company that was founded by Jeff Bezos in 1994. Initially, Amazon was an online marketplace for books, but it has since expanded into a multitude of product categories, including music, video games, consumer electronics, and home improvement items. Amazon's biggest source of operating profit is its AWS program, Amazon Web Services, which is based in the United States, Japan, Australia, Brazil, Europe, and Singapore. Amazon Australia was launched in 2018, and in its first year, it grew its assortment from 7.5 million products to close to 100 million.
| Characteristics | Values |
|---|---|
| Year of Launch | 2017 |
| Number of marketplace sellers | 25,000 |
| Number of products | 100 million |
| Website traffic | Doubled |
| Number of sellers using FBA | 27% |
| Number of products on Prime | 4 million+ |
| Number of monthly visitors | 16.3 million |
| Amazon's rank in Australia for attracting, retaining, and developing talent | 4 |
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What You'll Learn
Amazon's launch in Australia
Before the launch, Amazon had already invested heavily in Australia, with over AUD $5 billion invested in the country over the previous decade, including in infrastructure and compensation. Amazon also had more than 3,500 employees in Australia, with corporate offices in Sydney, Melbourne, Brisbane, Canberra, and Perth.
The launch of Amazon.com.au was highly anticipated by Australian consumers, who had been able to access Amazon's Kindle Store and other intangible products through the Australian website for some time. Amazon's arrival in Australia was expected to significantly impact the local retail market, with local retailers such as David Jones and Myer launching new strategies and services to compete with the e-commerce giant.
However, Amazon's initial launch in Australia faced some challenges and did not live up to the hype. There were complaints about limited product ranges and uncompetitive prices compared to other retailers in the country. Amazon's unique selling point at the time was free delivery on orders over $49, which was not common among Australian retailers. The company also faced issues with delivery times, with many shoppers not receiving their products on time or at all.
Despite these initial challenges, Amazon Australia has continued to grow and expand its product selection and services. By the end of its first year in 2018, Amazon had grown its assortment from 7.5 million products at launch to close to 100 million, with 20 million products from Amazon US available through the Global Store. Amazon also launched its Fulfillment by Amazon (FBA) service in Australia, improving delivery times and customer satisfaction. The Prime membership program was also launched in Australia in 2018, offering benefits such as Prime Video and Twitch Prime, along with Prime shipping.
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Amazon's growing marketplace
Amazon, the American multinational technology company, was founded by Jeff Bezos in 1994. Initially an online marketplace for books operating out of Bezos' garage in Bellevue, Washington, it has since expanded globally and diversified its product categories, earning it the nickname "the everything store".
Amazon's expansion into Australia is a testament to its growing marketplace. Within a year of its launch, Amazon Australia grew its product assortment from 7.5 million products to nearly 100 million. The number of marketplace sellers also increased from 2,000 to 25,000 during this period, with 40% of sellers based in Australia and the rest being international sellers, mainly from China.
The introduction of Fulfillment by Amazon (FBA) in Australia has been instrumental in improving customer satisfaction. FBA allows third-party sellers to utilise Amazon's storage, shipping, and returns handling services for a fee. The launch of the Prime membership program, offering free shipping and access to Prime Video entertainment, has also contributed to Amazon Australia's success.
Amazon Australia's growing marketplace and catalog have enabled the company to host its first Prime Day in July, attracting more visitors to the website. The company is on track to surpass eBay, its biggest competitor in the Australian market, in the coming years. Amazon's growing presence in Australia demonstrates its ability to adapt to new markets and expand its global reach.
Amazon's success in Australia is a result of its strategic expansion and diversification. The company's ability to increase its product offerings, attract third-party sellers, and provide efficient delivery and shipping services has contributed to its growing marketplace. Amazon's presence in Australia is expected to continue expanding, solidifying its position as a leading e-commerce platform in the country.
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Amazon Prime in Australia
Amazon Prime is a membership service that offers free two-day shipping within the contiguous United States on all eligible purchases for an annual fee. Amazon Prime was launched in the US in February 2005 at an initial price of $79 per year. Since then, Amazon has expanded its Prime subscription service to several other countries.
In Australia, Amazon Prime was launched in June 2018, with a 2-business-day delivery promise, free international delivery, and Amazon Video. Amazon Prime in Australia offers free, two-business-day delivery to nearly 90 per cent of Australians. Prime members in Australia will have access to millions of products from Amazon US sold directly on Amazon.com.au and will benefit from free international standard delivery on orders over AUD$49.
In addition to the delivery benefits, Prime members in Australia can also access Prime Video, which offers a range of TV shows and movies, including original series like The Grand Tour and Modern Love. Prime members also have access to Prime Reading, which offers a rotating selection of over 1,000 e-books, comics, and more. Furthermore, Prime members in Australia can take advantage of exclusive deals from popular brands and discounted priority delivery.
Australian Prime members can also shop using Alexa-enabled devices and have access to gaming benefits, including free games and a free monthly Twitch channel subscription. Overall, Amazon Prime in Australia provides a comprehensive suite of benefits tailored to the country, offering a combination of shopping, entertainment, and delivery advantages to its members.
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Amazon's Fulfillment by Amazon (FBA) service
Amazon was founded in 1994 by Jeff Bezos, who began by selling books online from his garage in Seattle, Washington. The company has since expanded globally and now offers a diverse range of products and services, including Amazon Web Services (AWS) and Amazon Prime.
In Australia, Amazon launched in 2018, and with it, they introduced their Fulfillment by Amazon (FBA) service. This service allows sellers to store their products in Amazon's fulfilment centres across the country, including in major cities like Sydney, Melbourne, Brisbane, Perth, Canberra, and Adelaide.
With FBA, Amazon handles the entire fulfilment process, from picking and packing to shipping and customer service. This includes managing customer enquiries, refunds, and returns for FBA orders, providing 24/7 support to buyers via phone and email. The service is particularly well-suited for lightweight, small, and durable items, such as electronics, beauty products, homewares, and accessories.
FBA offers several benefits to sellers, including the ability to focus on growing their business and developing new product ideas. It also provides cost savings, as sellers can avoid major investments in capital or staffing for fulfilment. Additionally, FBA helps sellers scale their business and reach a wider customer base, including Prime members who enjoy free expedited shipping on eligible orders.
Sellers can enrol in FBA for free when they sign up to sell on Amazon. They have the flexibility to choose which products to fulfil through FBA and can track their inventory through the Seller Central dashboard. FBA also offers optional prep services, such as bagging, taping, and labelling, for a per-unit fee.
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Amazon's acquisition of Audible
Amazon was founded in 1994 by Jeff Bezos, who began by selling books from his garage in Seattle, Washington. The company has since expanded globally and now has a significant presence in Australia, with Amazon Web Services data centres located in the country. Amazon Australia was launched in 2018, and within a year, the company had grown its product assortment from 7.5 million to nearly 100 million items.
Now, focusing on Amazon's acquisition of Audible:
On January 31, 2008, Amazon announced its intention to acquire Audible, a prominent seller and producer of digital audiobooks, radio and television programs, and audio versions of magazines and newspapers. The deal, valued at approximately $300 million, was finalised in March 2008, making Audible a subsidiary of Amazon. This acquisition was in line with Amazon's strategy to expand its digital offerings, particularly in the realm of audiobooks, and it paid $11.50 per share, a 23% premium over Audible's previous Nasdaq close.
Audible, which had over 455,000 members at the time of the acquisition, provided Amazon with a significant boost in the audiobook market. By acquiring Audible, Amazon gained access to its extensive catalogue, which now includes well over 100,000 titles. This move solidified Amazon's dominance in the digital book market, especially with the introduction of its Kindle device.
The acquisition of Audible was part of Amazon's broader strategy to become the go-to platform for customers seeking to purchase a diverse range of products online. By adding Audible's audiobook offerings to its existing portfolio of books, movies, music, and other digital content, Amazon reinforced its position as a comprehensive online retailer. This move also aligned with Amazon's goal to provide competitive prices and a vast selection of products for its customers.
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Frequently asked questions
Amazon was founded on July 5, 1994, by Jeff Bezos in Bellevue, Washington.
Amazon launched in Australia in 2017.
Amazon's biggest source of operating profit is its AWS program.
Amazon's slogan is "From A to Z".
