There has been a lot of chatter about Amazon’s impending arrival to Australia. We know from overseas experience that Amazon has the ability to completely revolutionise the consumer experience and shift the retail landscape. Amazon’s arrival presents a unique opportunity for the e-commerce industry; and for merchants to truly get the most of what Amazon has to offer, preparation is essential and timing is everything.

1. AMAZON ESSENTIALS: How to
get your business Amazon-
ready
Simon Kelly, Strategic Partnerships Manager, ChannelAdvisor

2. Who is ChannelAdvisor?
Retail &
Manufacturing
customers
worldwide
Global transactions
Global employees
focused on e-commerce
Our mission is to connect and optimise the world’s commerce.
100+ channels supported
worldwide
Copyright 2017 ChannelAdvisor | Confidential 2
~200M
packages

3. Forces Shaping the E-Commerce Landscape
Copyright 2017 ChannelAdvisor | Confidential 3
1. E-commerce continues to gain share of wallet.
2. Mobile is significantly disrupting the landscape.
3. Amazon continues to gain share rapidly.
4. Brands are scrambling to adapt to e-commerce.
5. Logistics is the next major battlefield.

4. The Growing Global E-Commerce Market
Sources: Forrester,
ChannelAdvisor estimates
Copyright 2017 ChannelAdvisor | Confidential 4
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
2016
2020
US $Trillions

5. Amazon Consumed Majority of 2016 Growth
Copyright 2017 ChannelAdvisor | Confidential 5Source: Slice Intelligence
Where Did E-Commerce Growth Dollars Go in 2016?

6. 55% of Product Searches Begin on Amazon
Copyright 2017 ChannelAdvisor | Confidential 6
44%
34%
21%
55%
28%
16%
0%
10%
20%
30%
40%
50%
60%
Amazon Search Engines Retailers
2015 to 2016 % of Searches
2015 2016
Source: BloomReach

7. Smartphones: Most Valuable Real Estate in Retail
Copyright 2017 ChannelAdvisor | Confidential 7Source: comScore

8. Amazon’s Stated Mission
Copyright 2017 ChannelAdvisor | Confidential 8
Our vision is to be Earth's most
customer centric company; to build
a place where people can come to
find and discover anything they
might want to buy online.

9. Inside the mind of Amazon
Copyright 2017 ChannelAdvisor | Confidential 9
Key tenets:
• Value
• Selection
• Convenience

10. How Does Amazon Drive Selection & Value?
Copyright 2017 ChannelAdvisor | Confidential 10
Brand /
Manuf. Retailer
Hybrid
Consumers
Third-Party
(3P)
First-Party (1P)
Select
remaining
inventory
Inventory
sold directly
to Amazon

11. Your Amazon Approach
• Different Approaches to Amazon’s arrival:
1. The business is already integrated
2. They are waiting until launch to assess and strategise
3. They are unsure of the impact and have decided to change
anything
What’s important as a retailer to understand is that Amazon WILL
in some shape or form, affect your business.
11

12. Even prior to the launch of Amazon in Australia…
• 3 out of 4 Australians aged over 18 say
they are interested in Amazon
• 56% are likely to purchase from its
Australian site
• About 45% per cent say they would
subscribe to Amazon Prime to receive
special deals, discounts and faster delivery.
• Conversion rates for most Australian online
retailers are less than 10%. Amazon’s US
site converts 49% of Australian shoppers
into sales
Copyright 2017 ChannelAdvisor | Confidential 12

13. Intent to Purchase
Source: Millward Brown Digital 2017 Study
Copyright 2017 ChannelAdvisor | Confidential 13
0 10 20 30 40 50 60 70 80
Prime
non-Prime
Top 500
Conversion Rates
3.2%
13%
74%

14. The Buy Box – Why it’s everything
While Amazon’s formula for calculating the Buy Box isn’t public, there
are clear factors that it takes into consideration including:
• Competitive price
• Positive customer feedback metric
• Fast and efficient delivery
• Volume of inventory
• Low refund and return rates
Copyright 2017 ChannelAdvisor | Confidential 14

15. Timing – why it matters
• The role of sales history
• Winning the Buy Box
• Establishing Trust
Copyright 2017 ChannelAdvisor | Confidential 15

16. Amazon Implications
Younger demographic
Increase in
revenue
Diversification Exposure to more
customers
Increased market
share
Access to mobile
customers
Expand range Understand
competition
International
expansion

17. Upholding the standards
• Thinking like Amazon
 Free Shipping
 Simpler returns policies
 Faster delivery
 Transparent pricing
 Increased communication options
 Streamlined processes
It’s all about the
consumer
Copyright 2017 ChannelAdvisor | Confidential 17

18. So Amazon is coming, what can I do now?
1. Optimise Listings
• You will need to get into a pattern of:
 Researching similar products to see what
listings appear with words you may not be
using
 Using single words rather than phrases
 Ensuring you don’t repeat words from your
product title
 Utilising the hidden key fields to use
synonyms and abbreviations
Copyright 2017 ChannelAdvisor | Confidential 18

19. So Amazon is coming, what can I do now?
2. Customer engagement
Think of Amazon not only as an e-commerce marketplace but as a
consumer engagement platform. How?
• Prioristise responding to all feedback.
• Monitor the competition.
• Take advantage of marketing tools
• Fulfilment
Copyright 2017 ChannelAdvisor | Confidential 19

20. Global Connections That Benefit You
Copyright 2017 ChannelAdvisor | Confidential 20
OUR MISSION
To connect and
optimise
the world’s
commerce

21. Copyright 2017 ChannelAdvisor | Confidential 21

22. How Can ChannelAdvisor Marketplaces Help You?
1. INVENTORY DATA MANAGEMENT
2. MARKETPLACES LISTING MANAGEMENT
3. 360 VIEW
4. ORDER MANAGEMENT AND FULFILMENT
5. REPORTING & ANALYTICS
6. COMPETITIVE ANALYSIS & PRICING STRATEGY
7. MANAGED SERVICES
Copyright 2017 ChannelAdvisor | Confidential 22

23. What to expect
• Amazon will have an affect, though
it may not take place straight away.
This is why it is important to think
long term.
• There are significant changes
coming to the Australian retail
market. It may not happen
overnight.
• It’s important to invest in your team,
upskilling, strategising and getting
Amazon-ready.
Copyright 2017 ChannelAdvisor | Confidential 23

24. Questions?
Copyright 2017 ChannelAdvisor | Confidential 24
Simon Kelly
Strategic Partnership Manager - ChannelAdvisor
simon.kelly@channeladvisor.com
Other resources:
www.channeladvisor.com.au/blog/