It’s “Prime-Time!” - Podean research reveals Amazon’s rapid ecommerce domination

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Pioneering research from marketplace specialist agency, Podean, reveals the relationship Australian consumers have with online shopping, with Amazon, and with smart speakers. The December research surveyed 1000 Australians to understand their behaviors, attitudes and motivations.

Amazon launched in December 2017 with much excitement and anticipation by consumers, and palpable fear by traditional retailers.

Since then the global retail juggernaut has been quietly and carefully building Australian infrastructure; honing their consumer offering, broadening their product selection, attracting big brands, and has recently launched their advertising offering in market.

However, despite this obvious acceleration of efforts, Amazon is notoriously coy when it comes to sharing research and insight into their business and indeed their consumers.

To shed light and gain insight into the Australian online shopper and their behavior on Amazon, Podean Australia has launched the first wave of half yearly “Prime Time” research using a panel of 1000 respondents.

Some highlights include:

  • 32.2% of those interviewed shopped online in the last month
  • 22% of these shoppers bought something from Amazon – whether the global amazon.com site or amazon.com.au
  • This was almost double the number of respondents who stated they shopped at other online retailers during the same month
  • The majority of Amazon shoppers were between the ages of 25 and 44, with shoppers on the global Amazom.com site slightly older than those on the Australian one
  • Approximately two-thirds of smart speaker owners had a Google Home versus only one-third with an Amazon Echo
  • Amazon Echo and Google Home owners have quite different demographic profiles, and uses for the speakers
  • Amazon’s entertainment offering across music and TV/video is the primary driver of Prime memberships out of all benefits

Australian Managing Director, Ashley Wales-Brown commented, “We’re really pleased to unveil the most thorough research into consumers and Amazon at a time when so many brands are curious about the opportunity. We’ve seen our clients enjoy massive increases in sales on the platform and this research reaffirms their decision to invest and get on board now.”

Ashley continued, “This research is useful for any brands looking at the Amazon and ecommerce opportunity or curious about how to best connect with consumers through voice. It also differentiates the consumers and habits of Amazon Echo versus Google Home.”

Podean will update this research every six months with the next wave released mid-year 2020.

Interested brands and agencies can contact Podean Australia for more information and insight – contactau@podean.com

Additional Information

About Podean:
Podean (poh-dee-uhn) hails from the word “antipodean” that refers to things diametrically opposed. Specifically, it is a term used in reference to Australia and New Zealand by inhabitants of the northern hemisphere. The notion of being opposite is what our Podean is focused on – we want to operate and act the opposite of narrow, slow moving and slow acting agencies.

Podean launched in 2018 and counts as their clients, brands within the auto, food, beauty, appliance and technology categories and have consulting engagements with media/advertising agency groups and high-profile global management consultancies. Podean’s founder, Mark Power, recently co-authored “Amazon for CMOs” – a top selling business title where he interviewed many of the top CMOs about their opinions and ambitions as they relate to Amazon. Prior his current role as Global CEO, Travis Johnson created and was President of Dentsu’s Amazon-focused consultancy, Sellwin Consulting. Before Dentsu he was Global CEO of Ansible Mobile, and also held CEO positions in Australia for media agencies UM, Initiative, Mnet and Cadreon. He was an Adweek Media Allstar in 2017.

Podean has offices in New York, Sydney and London.

E-commerce in Australia
Unhindered by borders, e-commerce in Australia is growing at pace and Amazon’s contribution will be a major part of this growth. The global online market is forecast to reach AUD$4.99 trillion by 2023, taking the share to 17% of total retail. Australian online spending is in line with this trend with the market experiencing significant growth over the last five years. The 2018 ‘Inside Australian Shopping Report’ conducted by Australia Post recorded that more than 73% of Australian households shopped online last year and the number of online purchases grew by more than 20% nation-wide. Additionally, in 2018 online shopping made up $27.5 billion AUD in consumer spending in Australia.

Last year, Amazon's Australian e-commerce sales more than doubled and are forecast to reach $23 billion in 10 years as the tech giant introduces a larger product range, sharper pricing and faster shipping to attract more customers.

FAQs
Q. How accurate is the data?
A. Highly accurate. Statistically according to sample size calculators such as http://www.surveymonkey.com for the population of 20m Australia adults, our sample size has a 4% margin of error at a 99% confidence level.

Q. When was the data fielded?
A. Across December 2019 to adults 18+ across Australia.

Q. How was the data fielded?
A. To an online panel. As Amazon is a primarily a digital property, the research is an accurate representation of customers and online shoppers.

ASHLEY WALES-BROWN
MANAGING DIRECTOR ANZ
m: +61 0428661056
w: http://www.podean.com
e: ashley@podean.com

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Ashley Wales-Brown
Podean
+1 4697370026
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