The Halo Effect Of Amazon Prime Day In Australia

With Amazon Prime Day having only just wrapped up for 2019, it is already being declared the company’s biggest shopping event in Australia to date.

Amazon is still building its Australian presence and clearly used the flagship event as a way to get on the map down under, as evidenced by the large sums of Prime Day advertising we saw this week.

The exclusive deals offered to Amazon’s paying Prime members – which users can easily access a 30-day free trial to – also provided an opportunity for the company to begin building the same ‘lifelong’ relationships with Australian customers that have led to its success in the US.

“Prime Day is the best of shopping, savings and entertainment and a way to say ‘thank you’ to Prime members,” said Amazon Australia country manager Rocco Braeuniger.

“We were delighted to see Prime members in Australia getting the most out of our epic deals, making Prime Day the biggest shopping event in Amazon.com.au’s history.

“With tens of thousands of products available at discounted prices, it was great to see Aussies snapping up deals on everything from Amazon devices to everyday essentials, and smart home devices to video games.”

But as well as giving Amazon an opportunity to capture some more of the Australian market, the sale also gives competitors an excuse to offer their own bargains.

This creates what online advertising company Criteo calls a ‘halo effect’.

A recent study by the company reveals customers aren’t married to Amazon’s sales during the period and will shop at whatever marketplace offers them value.

Companies that launched their own sales during Prime Week have seen an average 40 per cent increase in sales.

In Australia specifically, the Amazon-led sales came at a time where many local retailers are struggling, explained shopping expert at comparison site Finder Mia Steiber.

“The retail industry is doing it tough so it’s not uncommon to see retailers piggyback off other sales to lure consumers. In fact this year we saw eBay and Catch put on their own sales at the same time as Amazon,” she told B&T.

“Big sale events like Boxing Day and Black Friday, where there’s a variety of retailers involved, are still king for Aussie shoppers.”

She also pointed out the affinity for sales in Australia, which Amazon has now tapped into.

“Aussies are bargain hunters by nature and won’t shop unless there’s a sale – they know most retailers have a sale of some kind almost monthly.”

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