Aussie Retailers Choose Bunnings And Kmart Over Amazon: Roy Morgan

Paris, France - January 28, 2016: Amazon logotype printed on cardboard box side seen from above on a wooden parwuet floor. Amazon is an American electronic e-commerce company distribution worlwide e-commerce goods
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New research from Roy Morgan has found global online retail giant is stuck behind the likes of Bunnings and Kmart in the Australian market.

It follows news Amazon Australia again failed to turn over a profit in 2019, despite doubling its revenue from 2018.

According to the research, Amazon is simply not yet a household name down under, the same way it is in the US.

When Australians were asked the statement ‘I’d consider shopping at’  a total of 26 per cent said they would consider shopping with Amazon, compared with 61 per cent for Bunnings, 58 per cent for Kmart, 56 per cent for Big W, 51 per cent for JB Hi-Fi and 35 per cent for eBay.

It should be noted Amazon Australia is still a relatively young brand, having launched in 2017.

Given Amazon first entered the Australian market with a dedicated local store in 2017, it’s still early days for the online retailer. However, the consumer data we have on the company is underwhelming. On a variety of consumer indicators, Amazon is well behind brands such as Bunnings, Kmart, Big W, JB Hi-Fi, and to a lesser extent eBay.”  Roy Morgan CEO Michele Levine said.

However, there are still problems for the Jeff Bezos-owned tech giant when it comes to the idea of quality inventory.

Just 14 per cent of respondents believed Amazon has good quality products. This compared to 47 per cent for Bunnings, 25 per cent for Kmart, 27 per cent for Big W, 41 per cent for JB Hi-Fi and 14% for online only auction site eBay.

When it came to value for money, Amazon again struggled against its local competitors.

Just 16 per cent said Amazon has products that are good value for money. Whereas this was 44 per cent for Bunnings, 44 per cent for Kmart, 42 per cent for Big W, 27 per cent for JB Hi-Fi and 22 per cent for eBay.

 

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