Last Monday I had the opportunity to attend the Amazon Seller Summit in Australia. Amazon invited about 600 retailers, media and people on the Amazon game, to showcase what’s coming up and what Amazon are offering.
The question on everyone’s lips was “when will Amazon be launched in Australia” but they were tight lipped about giving out too information. A few rumors were going around during the day, some said it will be before Christmas, some said maybe it will be black Friday.
All we know for certain is Amazon already has a in Dandenong and are very close to launching…
AMAZON: CUSTOMER FIRST
The session was led by Rocco Braeuniger, Amazon Australia’s country lead. Many were asking him when would Amazon be opening in Australia. He did not answer the question directly but said “it will be very very soon”.
The session with Rocco focused on how much Amazon cares for its customers, bringing up some of the principles Amazon look at. This includes
- • Putting the customer first
- • Thinking big; and
- • Be innovative.
Those that are from US that shop with Amazon can testify on how Amazon cares to its customer.
One of the great things discussed was Amazon culture. Rocco summarized it by saying that
- • Amazon is happy to fail,
- • they always try lots of products and projects that we may not even heard about
- • they never stop trying to find ways to best help the customer
- • one winning project such as Amazon Marketplace or Amazon Web Services can pay for the hundreds of failed projects
AMAZON’S IMPACT TO RETAILERS
Another speaker present on the event was Fabio Bertola, Amazon’s Marketplace Manager. He discussed the details about Amazon FBA in Australia. With his discussion people found out how Amazon will impact the retailers (in a positive way), though did not go into too much details.
The topic of how to register was raised and Amazon in Australia is still only by invite, unlike other marketplaces where you can self service registration. For those lucky enough to attend the event, Amazon sent an sign up invitation and to my delight, I now have an Amazon Australia account (in addition to USA, UK and Canada)
The question now would be whether Amazon will be launched as FBA or whether it will be fulfillment by merchant.
The real key Amazon’s success is FBA which takes care of all the dispatch, the queries the fast delivery. During the presentation it was not clear if Amazon Australia would launch with FBA or FBM. In my Australian Amazon account, I do not have the option for FBA which is interesting……
Having Good Amazing Listing
The third speaker was an account manager who discussed what will make a good listing. Amazon recommends that you get a really wide and range of products. This is great for Amazon but not for the retailers
It will be great for Amazon as they will have a wide range of products on the site available but not great for the retailers as sending all your products on Amazon might cause a large amount for your working capital to be tied up
In my opinion it would be better to send in your winning product(s), create great Amazon product listings, make sure they sell amazingly well, then scale them quickly to increase sales before widening your product range on Amazon.
WHAT I LEARNT
Amazon is the highest growth and highest traffic source of online retail shopping in USA. Approximately 42% of all USA online retail sales go via Amazon.
If you are in a retail business get really excited with what Amazon can do, it can really change the way you do business.
Attending this Amazon event was a great opportunity for me to meet people, share my experiences and network with people afterwards.
In my situation I have served around 75,000 customers via Amazon in the last few years and have never owned a bricks and mortar business.
It just shows how powerful Amazon is and I would love to be able to help you with your Amazon journey
Remember, take action and keep the momentum going.
OUTLINE FOR THE EPISODE
[00:53] – Amazon: Customer First
[02:53] – Impact to Retailers
[05:17] – Good Listing
[07:20] – What I Learnt
CoachAMZ is an Amazon FBA expert that offers various services including Amazon product listing optimization to increase entrepreneurs’ Amazon sales. If you want some help in getting started, then I would love to help out. Please reach out to me so that I can organize an Amazon Selling Strategy Session
Listen to Our Podcast and make your Amazon Sales Shine
****** Full Podcast Transcription below *******
Learn How to sell on Amazon and across the World
Hi and welcome to another episode of Coach AMZ. Where we talk all things on Amazon speaking with experts from around the world to help grow and build your Amazon business. Hi guys! Welcome to another episode of Coach AMZ, where you get all your information about How to Sell on Amazon Australia across the world. Today, we will talk about Amazon in Australia.
Now, last Thursday when you’re listening to this which was on 22nd of November was the launch of Amazon Australia. It is called the soft launch the beta launch and normally a soft launch is a very discreet launch that says yep! we’re alive but we’re not doing much in terms of Amazon Australia. I haven’t seen anything that they’re doing.
I got my account and open approve it before the launch. I’ve got some products up there to see what it looks like and so far, I can’t see anything it’s happened in my products are on there.
When I go to look at them you can’t find them on Amazon. When you click the page, it says from inside Seller Central page cannot be displayed and won’t look for any other products on Amazon Australia is coming up blank so I’m not sure what Amazon’s soft launch is but unfortunately at the moment I can’t see any products on their live. But that’s not a bad thing.
The good thing is you actually have your products on there and today on the go through and talk about some of the features that are already enabled on Amazon and what you can look forward to coming only by Amazon Product Listing Optimization. So, the main feature in Amazon and the feature they really push is FBA Fulfillment by Amazon.
What that means is that you send your product into Amazon’s warehouse. Amazon FBA Expert scans it, they store it, they dispatch it, they do the customer service and they really push their products to be stored at their warehouse.
The reason Amazon FBA Expert make more commission and more fulfilment fees is when it’s in their warehouse plus the big thing which they and somewhat kept going on about is they love their customer experiencing their Amazon Listing Optimization Service. How can they make the customer experience better?
Through Amazon Listing Optimization Service, they know that the products in their warehouse, so, as soon as someone orders it a robot or a human can go and pick it up dispatch it they can track it. It’s a much better experience for the customer.
If you compare that to fulfillment by merchant is where you have a listing on Amazon but your products are in your own warehouse or your own house. Amazon can’t control when you dispatch these products. It’s more like an eBay system. You may have had an experience where you go online you order product on eBay and then it’s four days until summer dispatches it.
That’s more the fulfillment by merchant where there’s a listing online but the seller actually dispatches it. So, the Amazon FBA Expert is where Amazon dispatches it and that’s why they love the process of Amazon Product Listing Optimization because they get the commission plus they own the experiences they dispatch it, they can track it, they do the Amazon Listing Optimization Service and the customer loves it because Amazon has an amazing network of couriers. They turn up much quicker than in the US.
For example, in some areas like in San Fran parts of Manhattan, there’s Amazon Prime where you wake up the morning find out your toothbrush is a bit old you’re online you order toothbrush say for five dollars free delivery and you can turn up that afternoon. That is an amazing experience and why Amazon pushes FBA so on. In Amazon Australia, I went and looked in to Amazon Seller Consulting Services and there’s no FBA dropped down in your seller central in Amazon. You know there’s a drop down says manage inventory manage FBA inventory.
At the moment it’s only manage inventory which means it’s fulfilled by merchants. So, I presume they’re doing that for the soft launch because they haven’t worked out the logistics yet. But, very shortly they’ll need to work out Fulfillment by Amazon seeing it’s only three in a bit weeks Christmas.
I’ve a feeling that they’re not going to launch Fulfillment by Amazon to the new year. When we went to the seller summit on this slide it talked about Fulfillment by Amazon in Australia and it wasn’t ticked. There was a X next to whether that would be done and mean speaking a chap afterwards and he thought there would be fulfilled by Amazon but I remember seeing that slide saying there’s a cross there and now with a soft launch there’s no fulfillment by Amazon on Australia so I presume there will be something done in the new year.
So, it’s not a biggie. Amazon is just opening up in Australia but for all you sellers out there. Make sure you use Fulfillment by Amazon.
You can have 100 listings on Amazon fulfill by merchant but there’s no point if you’re not selling any products. From my experience you sell times 5 times 10 more products when it’s filled through Amazon Listing Optimization Service. I’ve tested both and its definitely fulfillment by Amazon is a winner.
The other thing I’ve noticed in Amazon Australia the features are quite limited at the moment and there’s no campaign manager. So, what that means is at the moment there’s no advertising tool within the Amazon Australia platform to promote your product but an Amazon Product Listing Optimization. So, in the UK Canada US there is it’s called campaign manager and it allows you to advertise your product for a fee. This is really good when your product first comes through Amazon Listing Optimization Service, because when your product first arrives you didn’t have that history you load in the rankings and you can uses this tool to get at the top of Amazon.
Amazon Listing Optimization Service does cost you anywhere between 50 cents up to three or four dollars depending on the price of your product and the competitiveness but it’s a really good tool. It is really simple to use to get your ranking at the top of Amazon all which you get to know through Amazon Product Listing Optimization.
In Australia that option is not enabled yet. I’m very, very certain that it will be turning on that straight away because it’s a real revenue raiser for Amazon and will be easily known that How to Sell on Amazon Australia. It means it’s another channel where they can get dollars in and push products through their store.
So, that’s something I’m sure that will come in shortly in alignment with something called Brand registry. So, in the US if you register you a brand which are highly recommend people to do, it gives you more protection around your product if people try hijack it but it also allows you to build an Amazon store front and also add template branding it’s called enhanced brand content at the bottom of your listing. And that’s really powerful because instead of just having your normal listing with four five bullet points you get to at the end of it add imagery description and a whole bunch of really cool stuff to make your listing look better.
For the Australian store at the moment that is not available. There’s no enhanced brand content and no brand registry. I’m sure that’s just part of time it’s not as important as campaign manager and not as important as Fulfillment by Amazon but is a nice additional thing you want to consider. So, for your brand owners out there keep an eye out for brand registry because it’s a really powerful very powerful tool that allows you to have a much better listing the thing that is external to Amazon but not yet provided by any third parties is email automation tools for customer reviews.
This certainly plays in a market like feedback genius feedback 5 there’s a whole raft of them but what they do is allow interface into your Amazon account. So when you get a customer order you can automatically send them a really nice thank you letters and great your product on the way all great things for ordering, here’s a FAQ or Hey guys thanks for ordering here’s some really good information and a bonus e-book input all that cool information in the autoresponder which improves the customer experience but also gives you that chance for customer reviews to enhance the opportunity in Australia no third party is offering that at the moment I assume because it’s just launched in the New Year.
I’m sure those other those third-party email providers will come to Australia and I highly recommend you sign up for one of them. They cost between probably the cheapest is about 20 up to 80 dollars a month depending on how many e-mails you send out and how many countries are across but it’s really important because it’s the best way I’ve found to get customer reviews and stop bad reviews through your e-mail sequence. If you reach out to them show them that you’re a real person that you care about them it can solve a lot of issues that may come up before they can put a customer review on there and that’s really important.
So, the moment Australia that’s not available but I’m sure it will come out shortly in that same line of thought. The tools in America such as the promo tools like jungle, jumpsend or snug shout we can blast out another a number of products yourselves velocity out they haven’t come to Australia yet. I’m sure they’ll come out very soon because for them it is an additional.
So, let me explain that what these parties do is they get third party customers to sign up. They say join our database and we’ll give you offers on Amazon and Amazon sellers. Get these companies and say look so this product being 30 dollars I’ll discount it for one dollar and you give it to your customer database and they all go to Amazon and buy it.
This was bought out years ago and people used it when they launch a product to blast out all these free products. They get lots of reviews and their sales losses go up and not rank very high on Amazon. Amazon stopped that, October 2016 because people were abusing it.
They were using it to get reviews that weren’t really reflective of the product. So, you can have an average product because you gave it for someone for a dollar they’ll write you a nice review. So, Amazon still allows that but they don’t allow giving away a discounted product for review. So, you can still give-away products but you just can’t ask for review at the same time. And I’ve noticed those companies have rebranded these ones give away their free products they rebrand themselves.
And when you do if you do upper class you don’t get nearly as many reviews as in the past and I’m sure Amazon’s algorithm has been updated. So I tested this just recently and it didn’t really impact the sales velocity as it used to in the past. You’d almost guaranteed depending on how many give away you to get in the top page of Amazon.
Now, that doesn’t work so much that’s really interesting Amazon does update algorithm normally on a monthly basis and that’s just a sign of how you need to stay up to date with Amazon. What they prefer now is of giveaways with cheap ones. I notice they do like external traffic coming in to a page to show that people from outside Amazon are coming in so it’s really interesting how Amazon’s change in their algorithm.
It’s all about putting the customer first. If people were giving away products free that’s fine but if they were given reviews that weren’t really reflective of the product quality. Amazon didn’t like that because a product does have a five-star ranking. So, it gave all these free products away and people gave great reviews but actual fact is a pretty average product probably only around two-and-a-half-star review. That’s why Amazon cut down that practice.
So, what I recommend guys I’ll put a link in the show notes about how to sign up to Amazon Australia I highly recommend getting on board. Amazon is an awesome channel for expanding yourself and growing it, I am by have been selling on Amazon since 2013, but I’ve been amazed by how you can scale a business so quickly without the effort needed to put into a normal traditional e-commerce business.
That effort is they provide the platform and the traffic into the store. So we still need to work at it. But you don’t need to do all the fulfillment and additional work after the sales come in. If you have a day where you’re selling 100, 200, 300 units if you’re trying to dispatch that yourself that will be very hard or you’d need someone full time dispatch those units in a day but with Amazon they do charge a fee but you can scale as quickly as you want because they fulfill all the orders. That’s why I highly recommend get on Amazon sign up today if you haven’t done it to Australia.
If you want any help reach out to me. I’m here to help you guys succeed on Amazon. Remember take action each day keep the momentum going. And I’d love to hear from you guys. And lastly if you haven’t gone over to iTunes and left a review. I’d love to hear from you and get your feedback. A five-star review would be fantastic if that’s what you think.
And I’m here to help you guys take action.