Amazon launches resale platform in Australia

Amazon is stepping up its Australian business, launching its own second-hand resale platform Amazon Warehouse in Australia on June 8 to compete with rivals such as Gumtree, eBay and Facebook Marketplace.

Amazon Prime Day 2021 will feature a 65-hour online sales event, running from midnight on June 21 to 5 p.m. ET on June 23.

Amazon Australia country manager Matt Furlong said Amazon Warehouse would give returned products "a new lease of life".

“Items are returned to Amazon for a variety of reasons – sometimes the item is simply not what the customer wanted, or there may be a cosmetic defect or packaging damage,” Mr Furlong said. “These items cannot be sold as new but are still in good quality, used condition.”

How Amazon Warehouse works

Amazon Warehouse offers discounts on used and returned “open-box” items across 30 categories, including electronics, home goods, books, music, apparel and toys.

Amazon offers used products including smartphones, home appliances and laptops, but the company said customers can buy with confidence because all orders will be "fulfilled directly and quality checked by Amazon." Buyers will also enjoy Amazon's existing customer service and return rights.

Amazon says items go through a "thorough quality check to ensure they are in good functional and physical condition" before they go on sale . Items are then rated based on one of four criteria: "Like New," "Very Good," "Good," and "Acceptable." This rating determines the "depth" of a product's discount.

Amazon Prime Day has yet to go mainstream in Australia

Amazon has been gradually expanding its presence in the local retail landscape since launching in Australia in 2017. But unlike in the United States, the platform's Prime Day promotion has yet to take hold in Australia. Research from digital advertising firm Criteo found that just over a quarter of Australian shoppers are familiar with the event.

Amazon is still developing its business in Australia. "But they are entering the market with determination," said Colin Barnard, managing director of Criteo . "This is a giant. This is a marathon, not a sprint."

Mr Barnard said while Amazon was still working to consolidate its position, there was an opportunity for Australian retailers to "level up". "We still have some good local competitors, such as individual retailers like JB HiFi and similar competitors like Catch. So there is still room for Australian retailers to not let Amazon have its way."

Barnard said consumers who want to support local retailers can still benefit from Amazon Prime Day because many local stores offer promotions at the same time.

According to ThredUp’s 2020 Resale Report, the Australian online second-hand market is expected to grow from $7 billion in 2019 to $35 billion by 2024.

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