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Monthly fees and commission of up to 15% -- how Amazon retail will work in Australia

The crowd waiting to enter Amazon’s event in Sydney today. Photo: Chris Pash

Retailer access to Amazon’s Australian marketplace platform will be invitation only for now, the company said today in an event in Sydney explaining how the online shopping service will work when it finally goes live.

Retailers will have to pay a monthly fee to Amazon of $49.95 plus GST to be able to list their products on the site, but this will allow sellers to list as many products as they like.

Amazon will then take a clip of between six and 15% of items sold, with the cut dependent on the product category.

The “take rate” from Amazon for certain products is higher than that of eBay, which takes between six and 10 per cent depending on the category.

Amazon Australia country head Rocco Braeuniger told the conference: “When are we going to launch? Let me tell you we are getting really, really close.”

The event in Sydney was a sell-out, attended by some 500 people — a mix of importers and retail product sellers. One seasoned retail industry executive noted the crowd was more diverse than the usual groups seen attending such events.

Amazon will be using the attendance list at the event to make invitation-only offers to join Marketplace before the official launch.

Business Insider reported last week that the Amazon platform was ready to deploy locally, meaning Australians will likely be able to access Amazon’s offering in time for Christmas.

Citi analysts expect the platform to be live by mid-November.

Over the weekend u/repairsalmostcomplet spotted that Amazon.com.au has started to display a range of items outside of their usual Kindle range and apps, and that website is now populated with some items such as power boards, cables and garden gnomes.

Retailers set their own prices and are responsible for shipping orders in the marketplace model, but Amazon will also have a full retail offering in which it buys products from suppliers, then sets prices and delivers goods.

Amazon hasn’t announced a commission schedule, only that those on Amazon Marketplace in Australia would pay between 6% and 15% pf the selling price. However, here’s what sellers pay Amazon now in Europe The schedule will be similar when Marketplace launches in Australia:

Image: Amazon Europe.

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