Amazon Australia Jumps on the Re-Commerce Bandwagon

Reading Time: 2 mins

By Power RetailPublished On: June 8, 20210 Comments

Amazon Australia is jumping on the resale bandwagon, but will it take off? The retailer has announced the launch of its new storefront, Amazon Warehouse, which offers pre-owned and open box items.

The retailer is appearing to jump on the resale bandwagon. A report from ThredUP is predicting that the market will grow from $7 billion in 2019 to $35 billion in 2024.

This new platform isn’t just a massive ‘thumb’s up’ for the re-commerce trend, but it could also help solve the problem of return rates for the retailer. “Items are returned to Amazon for many reasons – sometimes a product is just not what a customer is looking for, or perhaps there’s a cosmetic defect or the packaging is damaged,” explained Matt Furlong, the Amazon Australia Country Manager. “These items can’t then be sold as new but are still great quality and in good working condition. Amazon Warehouse gives these products a new lease on life and offers customers an even wider selection to choose from.”

Amazon Warehouse | via Amazon Australia

Amazon Warehouse will include more than 135 million items on its platform. Prime Members will have access to free shipping on eligible products, and all products will be approved and vetted by Amazon staff for quality control.

Not only will the functionality be tested before sale, but it was also get graded by its physical condition. There are currently four evaluations that the products will be marked against prior to selling: Like New, Very Good, Good and Acceptable. The rating of the products will determine how ‘deeply [the product] gets discounted’. “To help customers further assess each item and make an informed purchase decision, clear details – such as appearance, functional qualities, accessories and packaging condition – are listed on the product page,” the retailer explained.

The resale market has boomed in the last 12 months, with retailers like Vestiaire Collective, Depop and Poshmark signing new investments, being acquired by online marketplaces and inking exclusive partnerships with luxury brands. Will this new online platform from Amazon change the face of the resale category, push it further into the mainstream or dull its shine? Let us know below.

Like this story? Click here to find out more about Power Retail E-Commerce Intelligence or here to sign-up for the free weekly Pulse Newsletter for more essential online retail content.