Amazon Australia Reaches 10,000 Seller Mark

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By Published On: March 26, 20180 Comments

With FBA only launching last month, Amazon has now grown to over 10,000 retailers, doubling the number of sellers since January.

When Amazon launched in December 2017, there were mixed opinions whether it would be a slow growth or overnight explosion. The general consensus was that either way, the e-commerce landscape post-Amazon launch would be forever altered.

Now, two months since launch, Amazon has reached the 10,000 seller mark. This is a doubling of its January figures which saw 5,000 sellers listed on the the marketplace.

The increased growth is due to a number of factors. Many retailers were taking a ‘wait and see’ approach prior to launch, and have now taken the marketplace plunge. Furthermore, at launch, sellers required approval to list on the marketplace, whereas now Amazon has streamlined the process. This does however mean that the number of sellers shipping from China is more than half. According to figures from Marketplace Pulse, 70 new sellers join in Australia every day. This makes the fastest growing marketplace relative to its size.

At the end of last month, Amazon launched the much anticipated Fulfilment by Amazon (FBA). Businesses that wish to ship through FBA send their products to Amazon’s fulfilment centre (for a storage fee) and Amazon picks, packs and ships the product on behalf of the seller. Amazon also handles all customer service, including returns. It is believed that Prime will launch here mid-year. Only a few weeks post-FBA launch, more than 500 sellers are storing the majority of their inventory at Amazon’s warehouses. Prime is Amazon’s paid loyalty program and according to recent estimates, there are 90 million Prime subscribers in the US alone, 17 million members in Germany and 8 million in the UK.

It is estimated that Amazon Australia will exceed 50,000 sellers by the end of the year. The Australian statistics may not (yet) be in the millions, but the 10,000 seller growth is significant given that Prime hasn’t even launched here yet. The real test for Amazon penetration will be when consumer buying behaviour starts to shift, and that is something that will take time.

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