Amazon FBA Australia may provide the perfect sales opportunity for those who want to tap into a growing market with limited competition.
Amazon is the largest online marketplace in the world, serving over 1.2 billion people across the globe. The company continues to expand its global reach by setting up country-specific sites, including Amazon Australia.
Amazon launched its web services in Australia in 2012 but did not open its marketplace to the country until December 2017. Amazon Australia is now one of the fastest-growing marketplaces for the eCommerce giant.
So, should you start selling on Amazon Australia? Before setting up your seller account, you should explore the potential profits and costs of selling on Amazon.com.au.
How Big Is Amazon Australia?
Amazon Australia reported $1.12 billion in sales in 2020, which was a 99.4% increase compared to the previous year.
The entire Australian eCommerce market reached $36.7 billion in 2020 and is expected to exceed $54.2 billion by 2024. Amazon Australia currently accounts for a little over 3% of eCommerce sales in the country. However, experts predict that Amazon Australia may make up about 20% of all online sales within the next several years.
Amazon Australia is still in its infancy. As more Australians discover the convenience of shopping on Amazon, the company is likely to capture a larger portion of online sales. Compared to regions where Amazon is more established, Australia offers the greatest growth potential.
How Much Does It Cost to Sell on Amazon Australia?
The cost of selling on Amazon Australia varies depending on the total cost of your product, the product category, the size of your shipments, and your current location. Some of the costs involved include:
- Product cost
- Customs duty
- Goods and services tax (GST)
- Amazon fees
- FBA prep
You first need to consider the cost of your product and the sale price to determine your starting profit margin.
If you have $1500 worth of goods that you plan on selling for a total of $3000, your starting profit $1500. However, the various fees involved in shipping to Amazon Australia will impact your profits.
Sellers need to pay the customs duty and taxes for almost any product shipped into the country. Based on the value of the goods, you will typically pay 5% for customs duty and 10% for GST.
After getting your goods into the country, you still need to account for Amazon seller fees, FBA prep, and shipping to customers.
Cost of Shipping for Selling on Amazon Australia
You need to send products to customers or a warehouse for storage. With “Fulfillment by Seller” (known as FBM – “Fulfillment by Merchant” internationally) you handle shipping and potential returns. However, Amazon still charges fees for the transaction, including referral fees.
Fulfilled by Amazon (FBA) allows Amazon to take over the fulfillment process. You send products to an Amazon warehouse in Australia where the products are stored until a customer completes a purchase. Amazon then sends the product to the customer and deals with returns.
Amazon FBA Australia simplifies how you move products, but it also comes with other potential costs and shipping requirements. You need to ensure that every package meets Amazon’s packaging requirements or pay more fees.
What Fees Does Amazon Australia Charge?
Along with the product cost, freight and taxes, you need to cover various fees charged by Amazon:
- Selling plan fees
- Referral fees
- Fulfillment fees
- Storage fees
- Premium account services
All sellers need to choose between an Individual Selling Plan or a Professional Selling Plan. With the Individual Plan, Amazon charges $0.99 per item sold. The Professional Plan allows you to sell unlimited items for $49.99 per month.
You also need to pay fees for each transaction. Amazon charges a referral fee that ranges from 6% to 15% for most product categories.
Amazon’s revenue calculator provides a good estimate on the potential FBA fees your product would incur.
Amazon FBA Australia sellers also pay storage fees for storing items at an Amazon warehouse. This is one of several areas where an Australian FBA prep service may save you money.
Increase Your Potential Profits with FBA Prep Services in Australia
Joining Amazon FBA Australia makes it easier to reach a market with untapped potential. However, the FBA prep fees can eat into your revenue. Using an Australian FBA prep service allows you to avoid unnecessary fees and the challenges of complying with Amazon’s packaging requirements.
At Easy FBA Prep, we take care of the prep work and logistics of getting your products to Amazon fulfillment centers. You can focus on selecting and promoting products to expand your business while we handle the rest.
There are no hidden fees or surprises. The pricing for our FBA prep services in Australia is clearly stated on our site for complete transparency. Here is an example of how FBA prep services may boost your potential profits:
- You want to ship 1 carton containing 20 units of consumers electronics
- Each unit requires an individual poly bag
- Amazon charges $0.95 per unit for poly bags ($19 for 20 units)
- Amazon charges $0.75 to $2.40 per month for storage
- The estimated cost is $1.60 to $3.35 per unit
With our FBA prep services, the same shipment would likely cost about $1.55 per unit instead of $1.60 to $3.35 per unit.
Along with the savings, you gain enhanced inventory management and consistent FBA compliance.
In the end, Amazon Australia offers an exciting opportunity for anyone who wants to reach more customers. Whether you are an international seller or an Australian business, Easy FBA Prep can help streamline how you handle product fulfillment while saving time, money, and energy.