No need to fight in Europe and the United States! Amazon's sales on this site increased by nearly 50%

As the e-commerce industry becomes increasingly competitive, cross-border sellers are striving to find new blue ocean markets. As Amazon's North American and European markets gradually become saturated, turning their attention to other "virgin territories" that have not yet been fully developed has become the top priority for many sellers.

According to the latest report from foreign media, Amazon's Australian site withstood the pressure brought by the sluggish environment, and its sales in 2022 increased by 48% year-on-year.

According to accounts lodged with ASIC, Amazon Business Services had sales of $2.63 billion in 2022, up 47.7 per cent from $1.78 billion in 2021.

Amazon’s online sales accounted for the majority of the total , with net sales increasing from $883.3 million to $1.29 billion. Sales from third-party sellers also grew from $181.7 million to $316.9 million.

In addition to online sales on the platform, Amazon Australia also saw significant growth in Prime subscriptions, with related operating income nearly doubling from US$63.6 million to US$102.7 million.

However, despite the impressive performance growth, high income tax provisions still caused Amazon's Australian site to record a net loss of US$32.7 million. In 2021, this figure was a net loss of US$25.7 million.

An Amazon spokesperson said: "To better serve Prime customers in major cities like Sydney and Melbourne, we have doubled our operational investment in the last year alone, with the increased investment primarily going into optimizing delivery speeds and adding more product categories that can be delivered in one day."

In addition, Amazon's delivery area in Australia has doubled, and consumers in many remote areas can also enjoy Amazon's logistics services.

At present, many domestic sellers have already set up Australian sites. In fact, whether in terms of economic development or per capita GDP, Australia is almost the same as Europe and the United States.

In addition, Australia is also an English-speaking country, and its consumer groups have consumption habits similar to those of European and American consumer groups. This is undoubtedly a major advantage for many sellers who have operated in Europe and the United States.

In general, although some sellers complain that it is difficult to do business on the Australian site, it is still far less competitive than the North American and European sites.

Amazon

Australia Station