Consumers are ready for Amazon but most retailers are not – Commonwealth Bank
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.
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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.
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