Amazon Arrival To Spark $5.6bn Battleground For South Australian Retailers

Half of ‘on-demand’ South Australians willing to drop local rather than shop local.

We think supporting local retailers is incredibly important, that’s why we support things like Brand South Australia‘s Chooseday initiative to encourage South Aussies to Choose SA every Tuesday. Though, despite over half (58%) of South Australians seeing Amazon as a threat to their local retailers, nearly one third (29%) still plan to shop with the retail giant. A move which will create a $5.6bn battleground for retailers in South Australia, according to research from crowd-sourced delivery firm, Go People.

Amazon is enticing to younger generations especially, 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 South Australian retailers. Its huge range of products and aggressive pricing will enable it to capture the market rapidly in South 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, one in ten (10%) consumers in South Australia will abandon their online shopping cart for a faster alternative.

Additionally, shops that offer 3-hour delivery services are now preferred by one in ten (12%) South Australian shoppers. It’s so appealing that one in five (25%) of South Australians are willing to pay for the convenience.

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.

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