The vast majority of Australian consumers say they are likely to purchase from Amazon’s ecommerce platform once it launches this year.
According to research by Commonwealth Bank (CBA), 70% say they are likely to buy from Amazon, with more than 80% of Generation Z and Y shoppers ready to use the service.
However, the majority of retailers are not ready to compete. CBA’s findings show that 78% of Australian retail businesses do not have a strategy in place to deal with Amazon’s arrival, with 52% perceiving it as a threat to their business.
Around half of retailers are actively working on a plan, while, only 13% of retailers view Amazon as a business opportunity.
Commonwealth Bank National Manager, Retail, Jerry Macey, said: “It seems Australian shoppers are ready for Amazon but many of our retailers are still at the drawing board.
“Although Amazon’s arrival is reportedly weeks, not months, away, it will have a staged entry. So there is time to put plans in place, but that window is closing. There’s still one quarter of retailers concerned about Amazon who not only don’t have a plan, they aren’t working on one.
“Savvy retailers will be looking to better understand their target market and provide a relevant experience for that group. For instance, younger generations want a more engaging experience in-store to prevent them drifting online.”
For a full breakdown of the findings, see the latest CommBank Retail Insights report.