A study by commerce accelerator Pattern says the trend is aptly illustrated by the 51 per cent increase in the price of health and beauty products this year.

“The days of marketplaces winning Australian consumers with ultra-cheap pricing alone are over,” says Merline McGregor, MD at Pattern Australia. “Although leading platforms like Amazon will continue to attract shoppers with competitive pricing, consumers are now making purchasing decisions based on factors like credibility, product variety, and ease of shopping.”

Customers’ loyalty comes from convenience

“Australian brands selling on marketplaces that deliver frictionless shopping experiences are more likely to secure both the first purchase and increase their chances of building customer loyalty,” said McGregor.

About 57 per cent of Australians rate Amazon as the most convenient platform for purchasing goods, with a user-friendly ordering process, fast shipping options, and a seamless returns policy. 

Despite Shein and Temu’s continued strategy of bombardment marketing, welcoming deals, and an effortless shopping experience to entrench market presence, their convenience ratings remain significantly lower, at 14 per cent and 27 per cent, respectively.

“Convenience is more than just speed of delivery, it’s about every touchpoint of the shopping experience, extending from intuitive search functions to reliable customer service and simple returns,” said McGregor.

Customer relationships for trustworthiness and reliability

“We’ve seen a positive improvement in returns processes for all marketplaces, with only 3 per cent of Australian consumers stating they do not trust any marketplace for reliable returns. This is a huge drop from 18 per cent in 2024 and shows that all platforms are prioritising improving the customer experience in this critical area,” said McGregor.

As price advantages diminish, Amazon is leading with stable product quality and reliable return processes, with 60 per cent of Australian shoppers choosing it for product quality and 53 per cent for reliable returns.

While other e-commerce platforms such as Ebay, Kogan, and MyDeal are rated by Australian customers at 42 per cent, 16 per cent, and 9 per cent when it comes to trust, Chinese platforms Temu and Shein’s consumers’ confidence in product quality are 12 per cent and 11 per cent.

“In an increasingly competitive and regulated environment, trust is not an aspiration. Marketplaces must consistently deliver quality products, backed by hassle-free returns to build enduring customer relationships,” said McGregor.

Amazon, Ebay, and Temu’s extensive product range

According to the 2025 Marketplace Consumer report, Amazon Australia holds the leading position in the widest variety of inventory, including electronics, homewares, and sporting goods, which is recognised by 60 per cent of shoppers.

This is also true for Ebay, at 45 per cent for second-hand and collectible products, and for Temu, at 32 per cent, which notably saw an 87 per cent increase in the platform’s visiting rate last year.

“A broad and evolving product range is proving key for marketplaces to retain and grow their shopper base. Consumers are moving towards platforms that offer a one-stop-shop experience, and marketplaces that can deliver this effectively across multiple categories have a clear competitive edge,” said McGregor.

• This story was originally published on Internet Retailing.

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Having worked with brand owners at every stage, we’ve been asked just about everything when it comes to selling on Amazon. Does Amazon steal my data? Why wouldn’t I just sell directly to customers? And the question we hear most often – will I actually make money on Amazon?

The answer is yes. Selling on Amazon works. We’ve seen it firsthand, time and time again.

But success on Amazon – like any other sales channel – requires understanding its unique mechanics and rules. And just like any game, you need to know the rules before you can use them to your advantage. Here are a few key ones to get you started:

1. Winning the ‘Featured Offer’ is everything – 80 per cent of sales require you to be the best offer
   a. You’ll notice with every listing on Amazon a yellow ‘Add to cart’ button and ‘Buy Now’ button in the ‘Featured Offer panel. These buttons are designed to feature Amazon’s choice of what they think is the ‘best offer’ to the customer.
   b. The logic behind this buy box is largely secret, even to internal employees. However, we have experimented with this and we know the calculation looks something like this:
   i. Price
   ii. Delivery Speed (handling time + shipping time)
   iii. Customer Reviews
   iv. Account Health
   c. What this means for you: Be smart about how you win the buy box, and monitor your status overtime.
2. Amazon is a logistics company as much as it is a marketplace
   a. If there’s one thing drilled into us since Day 1 at Amazon, is that delivery speed is just as important (if not more important) than price.
   b. This explains Amazon’s incredible investment (sometimes at a loss) into their delivery infrastructure.
   c. Owning and operating every stage of the supply chain is their goal including getting products from suppliers to their warehouses, warehouses to customers, and customer returns.
   d. What this means for you: Leveraging Amazon’s delivery infrastructure is the only way to succeed on Amazon. FBA, EasyShip, SEND etc.
3. The customer relationship is Amazon’s, not yours
   a. Amazon does not freely give you customer data other than the minimum you need to handle customer orders, basic queries.
   b. This means things like customer journey lifecycle monitoring, customer marketing etc are near impossible on Amazon.
   c. However, we have seen some sophisticated retailers do some cool things to get closer to customers
   i. Include personalised messaging into the packaged item (even in FBA). This could include things like ‘leaving reviews, QR code to website etc.
   ii. Automated buyer seller messaging – send notes directly to customers using Amazon’s internal chat system

So, let’s circle back to the big questions we started with:

Will Amazon steal my data? No – but they do control the customer relationship, viewing them as their customers. The upside? These are customers you likely wouldn’t have reached otherwise.

Why wouldn’t I just sell directly to customers? Because Amazon gives you access to 8 million shoppers. How long – and how much – would it take to get that kind of exposure on your own?

If you understand the system and pull the right levers, you can definitely tame the Amazon beast.

The post Selling on Amazon: What most small-business owners don’t consider appeared first on Inside Small Business.

Same-Day Delivery is free to Prime members on eligible orders over $49 and is available to the vast majority of Sydney residents, covering over 90 per cent of the city’s population. And to celebrate the launch and make some extra special deliveries, Amazon Australia has appointed cricketing superstar and Australia’s fastest bowler, Mitch Starc as their ‘Chief Speed Officer’.

Janet Menzies, Country Manager for Amazon Australia, said, “We are focused on getting even faster for Prime members and are thrilled to be hitting a major milestone with the announcement of free Same-Day Delivery across a huge range of products for members in Sydney. We know that busy Australians really appreciate the time saved and the reliability of knowing that their order will arrive when we say it will.”

A report from Mandala Partners, commissioned by Amazon Australia, found that, in the last ten years, faster online delivery times are estimated to have provided almost $350 million of value to consumers through improved convenience and time saved. Online retail is driving intense competition in Australia when it comes to faster delivery options, and a previous report from Mandala estimated that households have saved nearly $3,500 since 2019 thanks to the price-lowering effects of online channels.

In addition to Same Day Delivery, Amazon Australia continues to provide opportunities to aspiring business owners, one of them being the Delivery Service Partner program, wherein those who apply to the program will be able to hire and manage their own delivery team. Alongside the faster delivery services such as Same-Day Delivery, selling partners will be able to ship their products to more customers faster.

There is also the Fulfilment by Amazon (FBA) program available to third-party sellers on Amazon.com.au so they can make the most of Amazon’s advanced logistics network. FBA sellers only need to send their product to one of Amazon’s fulfilment centres and Amazon then stores, picks, packs and ships the seller’s order to customers and also takes care of customer service issues and handles any returns or refunds on behalf of the FBA seller.

According to Mandala Partners’ report, businesses are estimated to have gained $1.4 billion in sales revenue from faster Business-to-Customer deliveries over the last decade. The report noted that these potential revenues, alongside an estimated $400 million savings through swifter access to inventory, means that Australian businesses stand to unlock $1.8 billion of value thanks to fast delivery.

The post Amazon launches Same-Day Delivery in Sydney appeared first on Inside Small Business.

The winners are:

• BSKT Wholefoods (Gold Coast, Qld) – An enterprise aiming to be the leading Indigenous-owned and operated health food business in Australia.
• AntiBeauty (Perth, WA) – A skincare brand whose products are Australian-made and vegan as it envisions to change the beauty industry.
• Zena Sport (Melbourne, Vic) – A business that creates pioneering female protection garments, including its impact vest which helps reduce the risk of breast and rib injury while being lightweight and non-restrictive.
• GiveWrap (Sydney, NSW) – This small business, whose team are pictured in the feature image, offers a range of high-quality, 100 per cent recyclable, Australian-designed gift wrap and also donates a portion of its sales to its charity partners.

Amazon Launchpad aims to celebrate and support the growth of Australian start-ups and SMEs by accelerating the business of its chosen winners.

This year, a first for the Australian program, 10 finalists travelled to Amazon Australia’s Sydney HQ to pitch their entries in person to a panel of expert judges including Kate Glazebrook, Head of Impact at Blackbird; Maxine Sherrin, Program Director at Spark Festival; Amit Mahto, Country Manager, Marketplace at Amazon Australia and Singapore; and Lauren Capelin, Startup Ecosystem Manager at Amazon Web Services.

Entrants were given five minutes to make their pitch, sharing what makes their product innovative and how they plan to scale their business this year and beyond. Finalists were judged on how well they answered those questions and pitched their product, as well as whether their business understands their customers’ needs.

“Listening to the innovation, creativity and energy from all of our finalists at Pitch Night, it was very clear that SMEs are the powerhouse of Australian retail,” Amit Mahto said. These small businesses and brands have identified products or trends that are not only exciting and ahead of the curve, but will hopefully go on to support the changing way of life in Australia – one that is inclusive, sustainable and purpose-driven.

“We know that some of the very biggest and best ideas start small, and I have no doubt that each of the winners will go onto achieve great things in Amazon’s stores and beyond,” Mahto added. “We’re excited to help them reach their full potential. We’re also thrilled to be able to launch the winning brands on Amazon.com.au and put them in the spotlight for some of our of biggest shopping events of the year.”

Each Amazon Launchpad Innovation Grant includes a $20,000 cash grant, the opportunity to apply for up to $10,000 in Amazon Web Services Activate Credits, out-of home support through JCDecaux, support provided by third-party experts Export Accelerator, Podean and Airwallex, a ‘Selling on Amazon’ bootcamp experience over two days including flights and accommodation for those based outside Sydney, featured seller placement on the Amazon Launchpad homepage during key deal events and marketing, PR and merchandising opportunities throughout 2023.

The post Four Aussie SMEs win Amazon Launchpad Innovation Grants appeared first on Inside Small Business.

Start-ups and brands with an innovative product and have plans to scale their business this year are invited to apply and have an opportunity to receive a grant package valued at more than AU$90,000 which includes:

• $20,000 cash.
• Substantial out-of-home support nationally courtesy of JCDecaux.
• Opportunity to apply for up to $10,000 in AWS Activate Credits.
• A ‘Selling on Amazon’ bootcamp experience over two days in Sydney, Australia, with flights and accommodation provided for those based outside Sydney.
• Featured Seller placement on the Amazon Launchpad homepage during key events such as Prime Day and Black Friday.
• Marketing, PR and merchandising opportunities throughout 2023.

For the first time in the grant’s three-year history, ten finalists will be chosen to pitch their entry in person at Amazon Australia HQ in Sydney to a panel of judges for a chance to win one of four grant packages. This year’s judges are Kate Glazebrook, Head of Impact at Blackbird; Amit Mahto, Country Manager, Marketplace at Amazon Australia and Singapore; and Lauren Capelin, Startup Ecosytem Manager at Amazon Web Services.

Finalists will have the opportunity to hone their pitch, receive feedback and network with some of Australia’s leading founders and industry experts, with flights and a night’s accommodation provided for those based outside Sydney.

“Through our Amazon Launchpad Innovation Grants we are excited to be able to nurture the ingenuity that Aussie entrepreneurs are so famous for and help the winners expand their businesses to reach more customers in Australia and around the world in Amazon’s stores,” Amit Mahto, Country Manager, Marketplace at Amazon Australia and Singapore, said.

“I’ve spent my entire career at Amazon helping sellers succeed, and I know firsthand the value of a program like Amazon Launchpad that helps Aussie start-ups and brands reach their online potential through access to Amazon’s customer base, opportunities to expand globally, and access to marketing support and logistics services like Fulfilment by Amazon,” Mahto added. “As the retail sector continues to digitise, we are proud to empower more than 14,000 Australian businesses who sell in our stores globally, and [we] look forward to welcoming a few more this year from the Launchpad program.”

According to Amazon Australia’s latest SMB Empowerment Report, Australian SMEs who have chosen to transform their offering for a global audience are benefitting from international expansion, despite uncertain economic times. Over half, 53 per cent, of SMEs surveyed as part of the report who export their goods increased their revenues in the year to July 2022, versus 35 per cent for those who did not export.

The Amazon Launchpad Innovation Grants entry period is opne until Friday 14 April 2023. The four Amazon Launchpad Innovation Grants winners, from across Australia, will be publicly announced in May 2023.

The post Applications for 2023 Amazon Launchpad Innovation Grants opened appeared first on Inside Small Business.

The packaging artwork, Tales of Platypus (Berranga), will be given to more than 30,000 Amazon Australia customers until mid-July as part of Amazon Australia’s Reconciliation Action Plan, which aims to “recognise, integrate, and celebrate” Indigenous cultures.

“The special qualities of the platypus, which once inhabited the Koroit Creek next to the Ravenhall fulfilment centre, include independence, creativity, adaptability, and flexibility,” Barton said.

“It also signifies yapaneyput (unity) and connection, having many relationships, collaborating, and engaging with many different parties. The mural and artwork is my visual story of how I view Amazon’s essence and connection to this country.”

Kelly Godschlax, procurement manager at Amazon Australia, led the initiative after being inspired by Amazon Australia’s #MoreThanABox Christmas initiative last year, along with Barton’s mural at the online retailer’s Melbourne fulfilment centre. Godschlax envisioned a limited-edition box commemorating Australia’s rich First Nations history, which would be distributed to tens of thousands of Australians.

“My half-brother is a proud Indigenous Australian and through this initiative, I hope to celebrate him and his family, while encouraging people across the country to acknowledge, learn and celebrate First Nations culture,” Godschlax said.

Customers can scan a QR code on each box to learn more about the meaning of the artwork, Barton’s mural and Godschlax’s inspiration, along with the story behind the box.

This story first appeared on our sister publication Internet Retailing

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Amazon Easy Ship is a pay-per-consignment service that includes pick-up and trackable delivery through Amazon.com.au, optimised for cost and speed through participating carriers. In addition, sellers using the service will no longer need to configure delivery speeds manually or negotiate rates with multiple carriers.

The service is designed to give sellers access to fast and predictable delivery services whether they use a warehouse or prepare their orders themselves. In addition, it is also aims to help smaller retailers save time from doing time-consuming shipping and logistics work so they can focus on better sourcing, creating, and promoting their products and brands for growth.

It is estimated that around 11,000 Australian third-party sellers, many of them small and medium businesses, will benefit from the service.

“We recognise that many of our sellers use an omnichannel model, combining online stores with their bricks and mortar shopfronts, and some run their small businesses out of their family home,” Amit Mahto, Head of Marketplace at Amazon Australia, said.

“At a time of global uncertainty, we have responded to the needs of diverse small businesses with a secure delivery option,” Mahto added. “Amazon Easy Ship gives small-business owners the flexibility and confidence to choose reliable delivery that optimises their operations.”

Business owner Chris Newsome, Founder of the Coffee Machine Specialist, has sold his products in the Amazon Australia store since 2020 and has successfully transitioned to online retail after starting out as a wholesaler.  

“Now that I’ve got this online channel through Amazon, I can add other products,” Newsome said. “I’ve got the infrastructure set up, so I can easily add other products to my offering to help increase turnover.” 

The post Amazon launches door-to-door shipping service for Aussie SMEs appeared first on Inside Small Business.

Many Australian SMEs have their sights set on North American market with more than one in five already operating in, or hoping to expand into, the region. Meanwhile, more than one in three businesses are already operating in or planning to expand a bit closer to home in New Zealand.

According to the study, such global aspirations have come about mainly due to the desire of these business owners to increase revenue (49 per cent), expand their customer base (43 per cent), and future-proof their business (28 per cent) as the COVID-19 pandemic continues. In particular, more than three in four SMEs with existing international footprints cited the impact of COVID-19 as a factor for them to consider furthering their global push, with almost 80 per cent now planning to expand to additional countries within the next 12 months.

The research also noted that almost a third of Australian SMEs with existing international footprints said that operating in other countries enabled them to navigate the challenges of COVID-19. In detail, two-thirds of existing exporters recognised an increase in global sales over the past 18 months, and 77 per cent cite the impact of COVID as a factor encouraging them to consider further international expansion.

For those SMEs who have already expanded internationally, 96 per cent have no regrets, and over 80 per cent wished they’d embarked on their global journey sooner. Over a quarter of SMEs reported that they were able to reduce risks during low sales periods by leveraging peak seasons in other regions, and more than 60 per cent increasing their customer base with their global expansion.

“With so much to think of when reaching overseas customers – from navigating local compliance requirements, product fulfilment, whilst building an understanding and marketing to a completely new audience – the small business seller faces many potential challenges,” Amit Mahto, Head of Amazon Marketplace Australia, said of the research findings,.

The study found that a quarter of SMEs admitted to feeling overwhelmed about overseas expansion, with one in five SMEs feeling unsure of where to begin. More than one in four SMEs feel that they don’t have the right tools, support or knowledge to expand globally on their own, particularly in the aspects of cost effective solutions to handle shipping and fulfilment (28 per cent), navigating local legal and compliance requirements (32 per cent), nternational marketing support (30 per cent), local taxation advice (34 per cent), and mentorship (23 per cent)

Despite the challenges, separate data from Amazon noted the growing success of Australian businesses in the global e-commerce as more than 11,000 Australian businesses, mostly SMEs, sell through Amazon and sold more than 25 million units across its Australian and international stores in the past year. Currently, 60 per cent of Australian sellers export their products through Amazon to international customers, with export sales by Australian sellers increasing by 30 per cent on the prior year.

The post A third of Aussie SMEs plan to go global appeared first on Inside Small Business.

ISB: What inspired you to hone in the baby products market with Bubzi?

E&AK: As new parents, we noticed products we purchased were low in quality and expensive and research showed us that many millennial parents purchased their baby products from Amazon. We seized this opportunity and created Bubzi Co in 2016 to help busy millennial parents prepare for their new baby by offering high-quality baby products, available to purchase conveniently online.

ISB: How has the business managed to grow despite the difficulties of securing financing or getting external investors?

E&AK: Securing funding is has been challenging, despite the fact that we are a profitable, cashflow positive business. To combat this, we’ve funded our business by re-investing profits, selling a property and taking out high-interest short term loans. The silver lining is that we have 100 per cent ownership of our business.

ISB: What makes Bubzi’s products stand out in a competitive baby products market?

E&AK: As Amazon marketing experts, we are able to utilise data analytics to design products based on proven demand and with features we know customers are looking for. Our products are designed to bring joy to the repetitive routine of looking after a baby every day. This is expressed in ways such as bright and adorable designs, easy and clear instructions, as well as outstanding customer service. For example, we offer a lifetime warranty on all our products.

ISB: What is the most challenging aspect of being in the Amazon marketplace and how does Bubzi remain competitive there?

E&AK: By understanding the Amazon algorithm, we utilise a range of different marketing strategies to remain competitive and ensure our products rank on the first page. Reviews are incredibly important on Amazon so we are always working hard to optimise our product quality which then leads to good reviews. Also on Amazon, you need to be in stock at all times, especially for our best-selling products as the keyword ranking can be lost if you’re out of stock for weeks. With COVID delaying supply chains, maintaining inventory levels has been a challenge that we’ve had to overcome by ordering more stock in advance and utilising alternative shipping methods.

ISB: What is your vision for Bubzi in the next two years?

E&AK: Our mission is to help new parents feel safe, confident and happy in the monumental life change that is parenthood. For us that means being in more retailers and more platforms, launching more products and making sure we offer all of the solutions that make parents feel confident to take care of their new baby. In order to help as many parents as possible, our goal is for Bubzi Co to be a well-known household brand worldwide. We also plan to continue to support our charity partners – Postpartum Support International, and B1G1 Business, to assist new parents globally.

ISB: As a serial entrepreneur who experienced both the highs and the lows, what has been the most important lesson you’ve learned that other entrepreneurs should learn as well?

E&AK: It’s a long-term journey, you need to think five-10 years ahead and be prepared to reinvest all profits for multiple years. It’s important to have a great brand, high-quality products and long term funding to keep growing. Every revenue level reveals another type of challenge and the majority of first-time entrepreneurs don’t know this until it’s too late.  You will get setbacks but don’t give up because when there’s a will, there’s a way.

The post Q&A: The baby brand growing up fast thanks to Amazon and a global outlook appeared first on Inside Small Business.

With such competitive growth in America, Australians feared Amazon would become as equally as impactful a phenomenon here. However, that was not the case, and despite predictions, Amazon remains relatively unpopular in Australia.

The biggest challenge for Amazon in the Australian market has been nailing down its delivery service, where the geographic population spread has made it difficult to achieve the same fast delivery services that are possible in the US.

However, Amazon is determined to solve this problem and is investing heavily in improving their delivery service, starting with the rollout of a 200,000 square metre robotics distribution centre in Western Sydney.

Amazon is set to offer state-of-the-art delivery services here in Australia and shoppers will soon experience a new level of fast, efficient delivery services. This will change what constitutes a satisfactory online retail experience and small businesses will need to adapt to compete.

So how can small businesses develop their delivery and fulfilment strategy to ensure they’re keeping up with these new industry standards set by Amazon?

Built-in express delivery will grow customer loyalty

Businesses should consider offering express delivery as a standard service to customers. This is a great way to build trust and loyalty. Often shoppers will abandon their shopping carts if delivery prices are too high or delivery times will be too long. Offering express delivery built into your service means shoppers have less reason to abandon carts and more reason to purchase from you.

Small businesses should integrate this service rather than offering express delivery as an option. Retailers in Australia have found a staggeringly low uptake of express delivery when it is offered as an optional service. In fact, data shows that voluntary uptake of Express Delivery is just 12 per cent. So while shoppers are more likely to purchase from you if you have fast, cheap delivery, they’re less likely to want to pay for it as an additional service.

Recruit the robots

Unlike Amazon, small businesses do not have the capital to invest in warehousing, planes, or robots.

Luckily, they don’t need to.

Today, small businesses can partner with warehousing and order fulfilment providers to ensure products can be picked, packaged, and delivered as quickly as possible and with the highest standard of industry technology that competes with Amazon. These providers are constantly investing in the latest technology and robotics, all for the purpose of rapidly accelerating the pick, pack and delivery process, ensuring the gold standard of fulfilment and delivery service. These partners have democratised access to the best technology by making it available to businesses of all sizes at an affordable cost.

Thanks to technology small businesses do not need to do it all alone. In fact, despite global competition, it’s never been so easy to start up and turn your passion project into a business. Owning a business is less daunting as today, small businesses can partner with an affordable tech solution for almost anything – be it, accountancy, delivery, fulfilment, or website design and management.

This makes the fight against Amazon manageable and less daunting, opening up opportunities for Australian-owned businesses to not only compete, but thrive.

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