Thinking of Buying an Amazon Store Business in Australia? Here Are 3 Vital Questions to Ask

The Australian online shopping industry is valued at $58.0 billion in 2025, employing over 122,800 people across 115,600 establishments.

Profit margins average 4.0%, generating $2.32 billion in industry profit.

Revenue is forecast to grow at 6.3% annually through 2030, reaching $79.4 billion, supported by mobile commerce, augmented reality shopping, and increasing household digital adoption.

Amazon Australia holds a 3.4% market share, generating an estimated $1.95 billion in 2025. Since its 2017 launch, Amazon has expanded aggressively with Prime subscriptions, robotic fulfilment centres, and expanded homewares and electronics ranges. However, high competition from Woolworths, Coles, Wesfarmers, Shein, and Temu keeps pressure on profitability.

1. Is the Business Financially Resilient in a Low-Margin Market?

Why It Matters:

Online retail, including Amazon stores, typically operates on low profit margins due to intense competition and discount-driven consumer behaviour. Amazon Australia only turned profitable in 2021 after years of heavy start-up losses.

Sellers must balance pricing strategies, shipping costs, and Amazon’s referral and fulfilment fees to remain sustainable.

What to Check:

• Sales performance and margins – Review turnover, net margins, and reliance on Prime Day and seasonal spikes.

• Fee structure – Assess impact of FBA (Fulfilment by Amazon) fees, referral commissions, and advertising spend.

• Inventory and logistics – Analyse whether products are stored in Amazon fulfilment centres or managed via drop-shipping.

• Cashflow resilience – Consider impacts of sales volatility, especially during inflationary and high interest rate periods.

2. How Competitive is the Business’s Market Position?

Why It Matters:

Amazon Australia competes against Woolworths (12.8% share), Coles (7.1%), and Wesfarmers (5.1%), along with aggressive low-cost international entrants like Shein and Temu, which captured $3.0 billion in combined Australian sales in 2023-24.

Niche product differentiation, strong branding, and review-driven trust are essential for Amazon sellers to maintain an edge.

What to Check:

• Niche focus – Determine if the business sells unique, high-demand, or hard-to-source products rather than competing directly on price.

• Review strength – Assess Amazon ratings, seller performance metrics, and customer feedback.

• Advertising dependency – Examine reliance on paid Amazon ads for visibility versus organic ranking.

• Competitor resilience – Consider exposure to cheaper imports and large omnichannel rivals investing heavily in digital platforms.

3. Is the Business Aligned with Amazon’s Growth and Consumer Trends?

Why It Matters:

Amazon continues to expand its robotics-led distribution, with a record-breaking fulfilment centre in Sydney and $490 million investment in new Western Sydney facilities by 2026.

Prime subscriptions and AR-enhanced shopping are fuelling sales growth, particularly in electronics, homewares, and fashion. However, Amazon Australia has not yet rolled out fresh grocery or chilled categories, limiting its reach against Coles and Woolworths.

What to Check:

• Prime integration – Assess whether the business benefits from Prime shipping eligibility and associated customer loyalty.

• Category focus – Determine if the store operates in high-growth segments like homewares, electronics, or health and beauty.

• Technology adoption – Review alignment with AR shopping, mobile optimisation, and customer data-driven marketing.

• Expansion potential – Consider opportunities to expand into export sales, private label branding, or integration with other marketplaces.

Ready to Invest in a Thriving Amazon Store Business?

With strong revenue growth, Prime membership loyalty, and expanding logistics capacity, Amazon Australia is a powerful sales channel.

However, buyers must navigate razor-thin margins, heavy competition, and the need for constant reinvestment in advertising, fulfilment, and technology to stay competitive.

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