Transcribe of “What is Amazon Prime Australia?”
Hi, it’s Neil Waterhouse. Last week Amazon Prime opened in Australia just two weeks after eBay released eBay Plus. Now, for those that don’t know what Amazon Prime is. It’s a yearly subscription service with an introductory price of $4.99 per month till January. Then it reverts to $6.99 per month, or seven bucks per month. Now, for the introductory price of 4.99 or as I’m going to call it, $5 per month, you get free express delivery on all Prime items shipped by Amazon Australia which is to over 90% of Australia population which is pretty surprising.
Yearly subscription service with an introductory price
You know, Amazon Prime also gives subscribers more benefits than just the free express shipping and I’ll go through those benefits in a sec. Even at the usual $7 per month, which is around, you know, $84 per year, this is cheaper than what most people thought it was going to be and certainly cheaper than the US. You now, as an example, in the US, a subscription in the US is $190 per year which is about 160 bucks Australian. In the UK, Amazon Prime is 79 pounds which is about $140 Australian. In Germany, the cost is 49 Euro, which is about 80 bucks Australian. And also Canada, it’s 79 Canadian, which is again about 80 bucks and, you know, it’s pretty similar as, you know, the Canadian country as well.
Amazon Prime, it’s been a massive hit in other countries
So, anyway, for 84 bucks per year, this appears to be pretty good value for shoppers. Amazon Prime, it’s been a massive hit in other countries with the number of Prime members nearly doubling over the last two years. There’s now over 100 million Amazon Prime members around the world. Now, one of the reasons it’s been such a huge hit is it’s very easy to justify the yearly membership fee.
It’s very easy to justify the yearly membership fee
Considering Australia, you know, for your five bucks or seven bucks per month, you get shipping or free shipping on every Prime item that you order. Now, if you’re used to purchasing in say, bricks and mortars stores, each time you order from bricks and mortars store, they might be charging you say 10 bucks shipping per order. By entering the world of, you know, Amazon Prime, you only need to place eight or 8.4 orders in one year to break even, you know, less than 10 orders and you’re breaking even in a whole year.
Amazon Prime also guarantees a two-day delivery
Now, and Amazon Prime also guarantees a two-day delivery to over 90% of the population. Of course, most bricks and mortars stores can’t do that. Then, also, to justify the cost of membership, Amazon also offers Australian subscribers the Prime Video service which includes popular movies and popular TV shows and also the Amazon exclusive content like, The Grand Tour, which is the remake of Top Gear with Jeremy Clarkson, et cetera. And there’s also some free games every month and also over a thousand ebooks available including the Harry Potter novels.
Australian Prime members get free international delivery on eligible items
Australian Prime members also get free international delivery on eligible items from Amazon US as well. For now though, music and the free cloud storage that Prime members get in other countries is currently not available in Australia. However, that, and I will sweeten this, they’re more than likely going to come over time. Now, Amazon Prime, it’s not available for every product listed on Amazon Australia though. It’s only available for products warehouse by Amazon in one of their two Australian fulfillment centers. So, if you want your products to be available on Amazon Prime, you must send some of your products to one of the two fulfillment centers.
How to set up your items for FBA, or Fulfillment by Amazon
Now, Amazon has now got two warehouses, one in Dandenong, Victoria and the other in Moorebank in Sydney. If you want to know more about how to set up your items for FBA, or Fulfillment by Amazon. I did an earlier video showing how to do this. But if you missed it, I’ll put a link on the screen. Now, for those new to this, FBA, of course, is the abbreviation for Fulfillment by Amazon.
Important thing to know about Amazon Prime
Now, the important thing to know about Amazon Prime. What happens in places like the US is shoppers click on the button that says only show Amazon Prime products. And over time we can only assume that Amazon Australia shoppers will do exactly the same. You know, same as they do in all other countries, and that is click on that button. So for that reason, sending products to Amazon FBA warehouse becomes a no-brainer. That’s all for this week. Wherever you’re watching this, please scroll down and leave me a comment below. What are your thoughts about Amazon Prime Australia? Until next week, list more, sell more, this is Neil Waterhouse.
Please leave me a comment below and let me know what you think.