Amazon Australia: Tapping Potential for the Sellers to Grow their FBA Private Label Business
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Amazon opened its market in Australia a few years ago. Considering the market potential, Amazon offered its Fulfillment by Amazon (FBA) feature to the third-party sellers in December 2017 by opening its first Fulfillment Center in Dandenong South, Melbourne, followed by Moorebank, Sydney in 2018 and Perth’s Airport Precinct was the third one. Recently, Amazon Australia gladly announced its expansion through the opening of Queensland Fulfillment Center (FC) in June; 2020. This expansion is evident that Amazon Australia is growing.

In this article, we will try to answer how you start selling on Amazon Australia.

  • What Is Amazon Australia?
  • Why Did Amazon Choose To Expand In Australia?
  • Australians On Amazon.com.au
  • How To Start Selling On Amazon Australia Seller Central?
  • What do you need to do before start selling On Amazon Australia?
  • What should I Sell On Amazon Australia?
  • How does selling on Amazon Australia work?
  • How do I determine the price of my products?
  • How do I manage to ship?
  • How do I market my products?
  • Is Amazon Australia worth it or not?
  • What Fulfillment by Amazon (FBA) costs to the seller?
  • How will I know when I have a sale?
  • Why should you prefer selling on Amazon Australia
  • Final verdict

What is Amazon Australia?

Amazon.com.au offers a program for both individuals and businesses to sell their products and inventory in Australia. Amazon has entered into the Amazon Australia known as Amazon Australia. It has penetrated deep into Australia’s retail market and grabs most of the market’s share.

 

Why did Amazon Choose to Expand in Australia?

Considering revenues, Amazon is amongst the top ten retailers in the global world. The reason it expands is its immense size and profits. Amazon Australia also affects Australian retailers to work alongside it.

 

Australians on Amazon.com.au

The Australian version of the Amazon website is slightly different from the US version. The younger audience dominates both US and Australia. Furthermore, a higher proportion of women visits the AU website than men.

 

How to Start Selling on Amazon Australia Seller Central?

Go for the registration procedure:

  • Register a seller account through “Amazon Services.”
  • Fill the seller profile with correct details
  • Add your valid business information (Business title, business address, store website (if any), contact details for OTP Verification.
  • Start listing your products and optimize them to start selling.

 

 

What do you need to do before start selling On Amazon Australia?

With the user-friendly interface, you may finish signing up in a few minutes. After that, your real struggle starts; you have to meet all the Amazon’s metrics from day 1. Amazon also starts charging its fee. Mean thereby; don’t hurry for creation of the account until you can understand everything about it. First of all, you should create the necessary documents and plan your daily operations for the business. Before starting the registration process, the following information is handy for you:

 

Email address:  you should have an official email ID through which Amazon communicates your essential information regarding the account.

Phone Number: you need to add the valid phone number and ensure that it is available because you may receive OTP or call from Amazon while signing up.

Business Details: Amazon will require your business name (legally registered), address, and valid content details.

Credit Card Information: Amazon requires your valid credit card number and makes sure that it is internationally chargeable. Invalid card details will suspend your account.

Tax ID: It is your tax identification number or your Social Security Number allocated in Australia.

 

What should I Sell on Amazon Australia?

Most of the categories are open for selling on Amazon. You can sell these products without any specific permission. Some categories require additional guidelines to sell. However, some categories allow listings for new products.

Restricted Products are the products listed in the categories where permission is required to sell. Amazon is cautious for some categories to ensure the quality standards for the customers. These standards build the trust of the customer on this international E-commerce platform.

You can sell in multiple products, consider two important factors:

Choose what sells and improve your business. 

If you choose a product that has not given much profit or cannot be sold in a bigger market, you waste your time and money.

Choose the product wisely that can increase the sales

If you sell something in a highly competitive niche, it may help you to compete with other potential sellers.

I suggest you go into in-depth research before becoming a seller on Amazon Australia. Find what the Australian customers are searching for. Analyze the data available on Amazon to predict which category or product can sell and bring profits in your business.

The current analytics is evident that the following categories tend to sell well on Amazon Australian market and easy to manage.

Home Improvement: From kitchen and bath fixtures to building supplies and hardware, all sell incredibly well. For this category, I would recommend choosing small and lightweight items.

Baby Products: These include baby toys, wigs to furniture, and nursery decorations. Such products have reasonable prices and sell for the whole year.

School and Office Supplies: one of the most demanded items in Australia, but you need to make considerable sales to bring enough profits.

Outdoor and Sports Equipment: You can choose lanterns, backpacks, tent accessories, flashlights, etc. You should select lightweight items to reduce shipping costs.

Learn about What is Amazon FBA PL and is it Right for Your E-Commerce Business?

How does selling on Amazon Australia work?

Amazon allows third-party sellers to sell their products through Amazon. Sellers allow setting their price points, writing product descriptions, and promote their brands. It also offers advertising tools to promote your products. Amazon charges for such services.

 

How do you determine the price of my products?

Setting the price of the product is extremely important. You can find multiple strategies around to decide what price gives you better revenue. I would like to share some key factors to consider while determining the price points:

 

Cost and fee: consider your cost on the products, customer return fees, and product write-offs.

Competition: analyze at what point your competitors are selling and what Amazon suggest your price.

Flexibility: It is tricky to tweak your price to find the right spot where your product gets ranked.

 

How do you manage to ship?

Fulfillment by Merchant (FBM):

You need to organize your shipping. Keep an eye on your inventory levels and maintain accordingly. Check your orders daily to avoid getting Out of Stock and ship orders timely.

 

Fulfillment by Amazon (FBA):

Amazon offers taking care of shipping through FBA. It allows sellers to stock their inventory in Amazon’s warehouses. You will be charged for the storage space, and orders Amazon fulfills. Learn about Amazon FBA PL – A Journey Towards Million Dollar Flip-Able Asset

 

How do I market my products?

Multiple avenues may be considered for marketing your products. It includes internal traffic (Amazon PPC, lightning deals, discounts, listing optimization) and external traffic (social media, branding, and marketing). Amazon’s A9 uses the search engine to rank the products. Find the right strategies to present your products with suitable prices, features, and availability and sales history.

 

Is Amazon Australia worth it or not?

Amazon Australia is a growing market and competing with giant eBay. Your success will mainly depend on what product you sell, which audience you target, and the cost analysis of the product. Remember: there is no formula for success in the Amazon market. Do extensive research and minimize the anticipated risks to increase your chances of success.

 

What Fulfillment by Amazon (FBA) costs to the seller?

Currently, Amazon has opened two selling plans. The professional selling plan costs $49.95 per month (excl. GST) and a fee on each product sold. The individual plan has no monthly fee, and you only need to pay $0.99 (excl. GST) fee per item sold. Remember: Individual plan has the limitation of selling less than 50 items per month.

 

Source: services.amazon.com.au

 

Fulfillment by Amazon (FBA) offers hassle-free shipment service and offers you pay only for the services you use. Your cost includes the fulfillment services and storage space used.

The fulfillment fee is the flat fee bears per unit, depending on the product type, dimension, and weight. It covers packing and picking of your orders, customer service, and returns too.

Storage space accounts for per cubic meter utilized to store your items in our Amazon Fulfillment Centre. The storage fee is calculated on the daily average volume in cubic meters per month is used.

 

How will I know when I have a sale?

Whenever you get the order, Amazon will notify you via email. You can add multiple email address and allocate preference to notifications in your account setting.

 

Why should you prefer selling on Amazon Australia?

Amazon Australia is a relatively growing market as compare to the Amazon version of the US and UK. You would be glad to know that It has the potential to grow at a rapid pace. Here’s are some benefits of this market that are an excellent opportunity for third-party sellers.

 

Less Competition – listing is fewer.

Amazon Australia has yet started to grow. It has limited listings, and most of the sellers are third party sellers. Luckily, Amazon is not selling on most of the listing. Based on the fact, competition is low. You can easily compete with competitors with average investment.

 

Traffic is increasing day by day.

eBay has a large market in Australia. Amazon is the latest addition, but its massive share in the global E-commerce market will also pull this marketplace to the top within no time. The increasing number of listings will compel the customer to buy. Amazon Prime has enough power to shake the E-commerce market of Australia; it will happen sooner or later.

 

Australia has a common language

Language is an essential factor in the global E-commerce market. Amazingly, Australia shares a common language and culture. If you are selling on Amazon, you don’t need to make significant changes to sell in Australia. There is no mess to translate the product descriptions.

List your current offers and let it boom your business.

 

The state-of-the-art delivery mechanism of FBA

Earlier days of Amazon.com.au were challenging because the seller has to take care of the shipment. Order management was an uphill task for sellers and questioned the brand reputation while delays in logistics and deliveries. The pleasant addition of Fulfillment by Amazon in the Australian market provides better opportunities for third-party sellers to grow their business and build brand reputation.

 

Final Verdict

Amazon has a large share in the global ecommerce market. Amazon.com.au is the new venture and has potential will grow within no time. The wise decision is to jump in the Amazon Australia to start your business with lower investment and higher potential to grow your FBA PL business.

 

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