Taranaki Daily News

Exporter luck in Amazon’s arrival

- TOM PULLAR-STRECKER

Amazon’s arrival in Australia is a huge opportunit­y for exporters, says an expert who has helped dozens of New Zealand firms sell through the online marketplac­e.

The United States retail giant is expected to open its first fulfillmen­t centre in Australia any day, and so far most debate in New Zealand has concerned the possible hit on domestic retailers.

But consultant Hamish Conway said Amazon’s arrival in Australia could help Kiwi firms wanting to sell their products through Amazon Marketplac­e – a service that lets businesses sell items via its website without losing control of their pricing and marketing.

Conway’s company, Sell Global, helps about 50 New Zealand companies sell products through Amazon Marketplac­e, but he estimates there are hundreds of Kiwi companies doing that in total.

Amazon states on its website that more than 40 per cent of its sales, by volume, are through Marketplac­e partners, rather than of stock it owns itself.

The company provides two basic Marketplac­e options.

Businesses could simply use its website to list their products, for which they could expect to pay a ‘‘referral fee’’ of about 15 per cent, Conway said.

Alternativ­ely, they could send their stock to an Amazon fulfillmen­t centre, such as the one it is opening in South Melbourne, so Amazon.com would ship their products to customers itself.

Conway said companies could expect to pay an extra 10 per cent to 20 per cent of sales proceeds to Amazon for that service, called Fulfillmen­t By Amazon (FBA).

‘‘Amazon will ‘pick it, pack it and ship it’ and handle any customer service, which is great as it removes a big headache,’’ he said.

‘‘I think New Zealanders will adopt Amazon faster than Australian­s because we don’t have many good alternativ­es whereas the e-commerce options in Australia are much broader.’’

The fees associated with FBA were a bargain, he said.

‘‘It is a cost-effective way to reach an audience in the US, UK or Australia.’’

 ?? PHOTO: REUTERS ?? The US giant’s Fulfillmen­t By Amazon service means companies can have their goods shipped while retaining control over pricing and marketing.
PHOTO: REUTERS The US giant’s Fulfillmen­t By Amazon service means companies can have their goods shipped while retaining control over pricing and marketing.
 ?? PHOTO: GETTY IMAGES ?? Amazon’s entry into Australia could be an opportunit­y for New Zealand exporters as well as a threat to domestic retailers.
PHOTO: GETTY IMAGES Amazon’s entry into Australia could be an opportunit­y for New Zealand exporters as well as a threat to domestic retailers.

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