Small online retailers not threatened by Amazon: survey

Unlike big players, small retailers deem Amazon as an opportunity to grow their business

Small online retailers not threatened by Amazon: survey
McGinley believes Amazon's entry will have a positive effect on the logistics sector.


Smaller online retailers are more likely to welcome Amazon in Australia than larger businesses, a new research indicates.

Smaller players see the entry of the e-commerce giant as an opportunity to grow their business.

The results are part of an independent survey carried out by parcel delivery service CouriersPlease (CP) among its online retail customers to gauge sentiment about the arrival of Amazon.

The study reveals that 59 per cent of the 193 online retailers that took part in the survey – many of them small businesses – see Amazon’s arrival as a chance to expand their reach across Australia and international destinations.

Also read: Will Amazon's arrival change Australian T&L landscape?

The sentiment was directly related to the size of the business, with 62 per cent of micro businesses, 56 per cent of small businesses, 53 per cent of medium-sized businesses, and 33 per cent of large businesses set to welcome Amazon in Australia.

Meanwhile, 63 per cent of online retailers and 74 per cent of small online retailers believe that Amazon will not compete with their business.

Also read: Amazon presages change and opportunity says CP's Hooper?

CP CEO Mark McGinley believes the competition that follows the entry of Amazon in Australia will push both retailers and logistics businesses to perform better.

"Amazon is a disrupter and it’s likely that its arrival will change not only the retail sector, but also the logistics industry," McGinley says.

"Like every disruptor in the market, Amazon is customer-focused and local businesses wanting to compete will need to look at how they can add value to the customer.

"There is no doubt that the competition will make us all better at what we do.

"Since the announcement of Amazon’s arrival, we’ve had an increase in requests by e-tailers for our flexible delivery choices.

"This option enables customers to receive pre-emptive notifications to redirect their parcel to our network of parcel lockers and retail outlets, leave the delivery without a signature, or with a neighbour close by if they won’t be home to receive it.

"Australian online shoppers have told us that they will redirect their purchases to Amazon if it can deliver more of what customers want.

"It’s no surprise that smaller online sellers see Amazon as a partnership opportunity, to enable them to reach more local and overseas customers."

However, the attitudes among online retailers are in stark contrast to shopper behaviour, CP says based on its previous research.

A study conducted by CP in June revealed that 90 per cent of Australian online shoppers admitted they would purchase from Amazon if it fulfils its promise to deliver low prices, vast selection and fast delivery.

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