Amazon eBay tries to grab bigger market in Australia

With an area of 761,793 square kilometres, Australia is the most economically developed country in the southern hemisphere, the world’s 12th largest economy, the world’s fourth largest exporter of agricultural products, and the world’s largest exporter of minerals. Australia is also the country with the largest number of sheep and wool export in the world, so it is called “the country on the back of sheep”.

In 2018, the average amount of online transactions by Australian Internet users increased, with electronic products still the fastest growing category, followed by fashion services and household products.

Amazon’s old rival eBay gained an early reputation in Australia, but it is clear that the future of the Australian e-commerce market is bound to be different as Amazon starts to invest and expand in the market.

eBay was founded in the mid-1990s and will be in its 20th year in Australia in 2019. Tim MacKinnon, managing director of eBay Australia; “It’s a very long time in the tech industry. But that doesn’t mean eBay can rest on its laurels, especially as the new world’s most valuable brand, amazon, enters the Australian market.”

eBay dominates the Australian online retail market with about 21 million visitors a week. This figure reflects eBay’s full coverage in Australia, and may also include the millions of people from neighboring countries who choose to buy at eBay.com.au. eBay Australia has even more visits than the last seven sites combined.

eBay has established itself as an Australian market, perhaps eBay’s largest market penetration anywhere in the world. For Australian consumers, eBay’s appeal lies in quick and easy cross-border purchases, as local shopping choices are often limited.

Anastasia Lloyd-Wallis, market analyst at retail consultancy Retail Doctor, said: “Her research suggests that it may be a matter of time for Amazon to overtake eBay. But for now, eBay still dominates Australia’s e-commerce market, and Amazon is struggling to catch up. Amazon’s promotion in Australia is slowly getting on track, and it is involving as much of the wider business as possible. “



Amazon Prime has achieved 7 per cent market penetration in just one year since its launch in Australia in June 2018. Analysts said amazon Prime would focus on its Australian operations. Amazon’s Prime Day promotion has been more successful in Australia than elsewhere, including the UK. So, in the future, amazon is expected to take some market share from eBay. However, to succeed in this market, it is particularly important for relatively new entrants to win the trust of consumers.

According to a study by Retail Doctor in April 2019, 50 per cent of australians said they either did not trust Amazon or were unsure. That leaves eBay in a strong position, at least for now.

Asked what Amazon needed to do to ensure a smooth entry into the Australian market, Tim MacKinnon declined to comment directly. “I would never advise specific people on how to do a better job,” he says. “

When it comes to building trust with consumers, Tim MacKinnon says: “you have to be more familiar and deliver on your promises. “If you want to be successful in Australia, you have to work with local retailers, not try to disrupt and disrupt the retail landscape in Australia.”



While Amazon declined to answer specific questions about its presence in Australia, a spokesman said the company was pleased with its performance in Australia to date.

While the proportion of Australians shopping through social media platforms has increased, many are still unsure whether they will buy on social media platforms. Thirty-six percent of consumers don’t trust the shopping process through social media platforms, and 38 percent worry about the security of their financial information.