Local retailers are losing out as Amazon acquires 1.1 million new customers in the last 12 months to June 2024, new research from Roy Morgan revealed.
Now 7.9 million Australians aged 14 or more shop on Amazon at least once a year, up from 6.8 million in the year to June 2023.
David Jones have lost the most customers - down 5 per cent and 7 per cent respectively - over the last 12 months compared to the previous year, while Big W and Myer are in neutral territory.
JB HiFi is the only other retailer to have gained customers, with an increase of 300,000 in the current year.
On average Australian Amazon shoppers are purchasing six times a year on the platform – almost as frequently as Kmart customers shop at Kmart - with an average of 7.5 times. A large proportion are high-frequency customers, with 3 in 10 Amazon shoppers making a purchase seven or more times over a 12-month period.
Books, small electrical goods, clothing, and computers and accessories continue to be the top selling categories on Amazon Australia. Many shoppers are looking to Amazon to fulfill different needs buying across multiple categories, with 31 per cent of Amazon customers buyinv two or more categories while just over 1 in 10 buy three categories or more.
But this is set to expand following recently announced plans to move into ‘big box’ retail – furniture and large electrical – via the construction of a new purpose-built warehouse in Sydney in 2026.
The global giant is also launching a strategy to win a share of the growing ultra-cheap retail market dominated by Shein and Temu, with reports that it is planning a new section devoted to non-branded products under $30, shipped directly from China to consumers.
A mix of all Australians are shopping on Amazon, however an even split between men (50 per cent) and women (50 per cent) sets Amazon apart from most of its peers which tend to skew towards women.
More than half of Amazon’s shoppers are aged 25-39, and their shoppers are more likely than the average Australian to come from higher income households. Three in 10 shoppers live in $200,000 and up income households.
“At a time where Australian retailers are battling it out for a share of dwindling disposable incomes, Amazon's continued growth is impressive and signals a big change in the landscape,” Roy Morgan head of retail research and social and consumer trends, Laura Demasi said.
“The disruptive power of Amazon has been underappreciated in recent years, but this kind of growth trajectory puts all Australian retail brands on notice – especially now given its upcoming expansion into big box retail and the ultra-cheap market.
“If Australia is on track to mirror the US trend, where Amazon accounts for an incredible 37.4 per cent of all online spend, our retail landscape could look quite different in coming years.”