- 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 gonna 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.
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 gonna 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.
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.
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.
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 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 gonna 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.
Now, Amazon has now got two warehouses,
one in Dandenong, Victoria
and the other in Moorebank in Sydney.
If you wanna 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.
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.