Amazon Arrival to spark $42.7bn battleground for New South Wales Retailers

– Half of ”˜On-demand’ consumers from New South Wales willing to drop local rather than shop local –

SYDNEY, 15 August 2017 –  Despite almost two thirds (62%) of New South Wales consumers seeing Amazon as a threat to their local retailers, nearly half (47%) still plan to shop with the retail giant. A move which will create a $42.7bn battleground for retailers in New South Wales, according to research from crowd-sourced delivery firm, Go People.

Unsurprisingly, it is the younger generations Amazon will entice, with nearly two thirds (64%) of 18-24 year olds and 60% of 25-34 year olds in Australia planning to shop with the online retailer.

“Amazon is a clear and dangerous threat to Aussie retailers. Its huge range of products and aggressive pricing will enable it to capture the market rapidly in Australia. A number of Aussie retailers have said they’ll price match, but not everyone will be able to do that. This will leave a large number of retailers scrambling to win back consumer attention,” said Wayne Wang, CEO at Go People.

While Amazon leads on price and variety of products in many markets around the globe, convenience and delivery options are essential in capturing the Australian consumer. In fact, half (50%) of Aussie consumers say same-day delivery is important to them when choosing where to shop.  Again, this rises to 69% amongst 18-24 year olds and 59% for 25-34 year olds. For those retailers not offering the convenience of same-day delivery, over one in ten (12%) New South Wales consumers will abandon their online shopping cart for a faster alternative.

Additionally, shops that offer 3-hour delivery services are now preferred by one in five (22%) New South Wales shoppers. It’s so appealing that almost a third (29%) of New South Wales consumers are willing to pay for the convenience.

“Amazon has really tipped the Australian market on its head, and we can no longer rely on old methods of services. Moving forward, Australian retailers are going to have to offer more choice in delivery options if they are to compete with Amazon – this is a real opportunity for Australian businesses to flex a competitive muscle in the fight for consumer loyalty. We need to be just as innovative as Amazon if we are going to survive,” said Wang.

To aid small businesses in the David and Goliath battle, Go People has created GoSHIFT, a unique service enabling smaller retailers to hire shift based dedicated drivers as and when needed, to match the three-hour Amazon delivery window for as little as $5 per delivery.

“Technology is quickly offering retailers more affordable options to be able to meet the demands of today’s ”˜I-want-it-now’ consumers. By using the power of people, Go People are providing cost effective, fast and flexible delivery options, from three hour and same-day deliveries to more traditional longer term delivery choices,” he concluded.

For further information visit  www.gopeople.com.au.

 

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