Amazon is targeting the 88% of Australians who shop with overseas retailers

Photo: Don Arnold/Getty Images

Amazon Australia is reportedly launching 2pm Thursday, and the latest global research on shopping habits shows why the US giant is keen to arrive Down Under.

Research results from US tech giant Pitney Bowes showed widespread dissatisfaction among Australian shoppers with local merchants, with 88% choosing to shop through overseas retailers in the past year.

“Australian shoppers have an entire global marketplace at their fingertips,” said Pitney Bowes executive vice president Lila Snyder.

“The demand for a ‘seamless’ customer experience means customers expect that there is always a way to get the product they want, shipped wherever they want, whenever they want it. This creates both opportunities and challenges for retailers.”

The biggest reason for Australian shoppers heading to overseas sites was price, which 64% of the survey respondents said was a factor. Forty-two percent cited selection and 24% attributed quality as reasons.

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The almost 9 out of 10 Australians shopping offshore compared to just 47% among Americans, which explains why Amazon may think there is an opportunity that could be filled in this country.

Free delivery was a major attraction for Australian shoppers, with a whopping 82% saying they would prefer free shipping that takes a bit longer, over shipping with extra fees that arrive faster.

Shipping complaints were prominent among Australian shoppers, with a not insignificant 8% experiencing deliveries to the wrong address or loss of product in transit. To alleviate this, more than 6 out of 10 Australians are having items delivered to a physical store pick-up point.

“With even more purchases expected to be online this holiday shopping season, retailers need to double-down on the elements of the consumer experience that matter most – delivery, returns, tracking and world-class customer service,” Snyder said.

There is also dissatisfaction among Australians with local physical stores, with 72% unable to find an item in a bricks-and-mortar shop, forcing 19% of them to go online and 21% heading to a rival retailer.

Approximately 12,000 people in 12 countries were surveyed for the 2017 Pitney Bowes Global Online Shopping Study.


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