2 in 3 small online retailers expect to grow their business with Amazon

With the arrival of Amazon causing heated debate among industry experts and retailers alike, new research reveals smaller online retailers are more likely to welcome the eCommerce giant than larger online retail businesses, and see it as an opportunity to grow their business.

Leading parcel delivery service CouriersPlease (CP), who delivered more than 17 million parcels Australia-wide and internationally in 2016 alone, conducted a survey among its online retailer customers to gauge sentiment about the arrival of Amazon.

Of 193 online retailers who took part in the survey – many of them small businesses – more than half (59%) see Amazon’s arrival as an opportunity to grow their business to Australian and international customers. The percentage consistently increased the smaller the size of the business: 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 would welcome Amazon.

The survey also revealed that 63 per cent of online retailers – and 74 per cent of small online retailers – believe Amazon will not compete with their business.

Attitudes among online retailers, however, are in stark contrast to shopper behaviour. CP research 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.

CEO of CP, Mark McGinley, said: “Amazon is a disrupter and it’s likely that its arrival will change not only the retail sector, but also the logistics industry. 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.”