Nearly half (46%) of Australian consumers have said they plan on shopping with Amazon, despite 59% recognising it as a threat to their local retailers.
According to research conducted by Go People, the decision to shop with Amazon will result in a $131 billion battleground for retailers.
It was also revealed that the key markets for the online juggernaut fell within the younger demographics, with nearly two thirds (64%) of 18-24 year olds and 60% of 25-34 year olds planning to shop with Amazon.
Convenience and delivery options were identified as a decisive factor for the Australian consumer, with 50% stating same day delivery was important when deciding on where to shop.
These results jumped to 69% amongst 18-24 year olds and 59% for 25-34 year olds. One in 10 customers will abandon their cart should these services not be made available.
Additionally, shops that offer three hour delivery services are now preferred by one in five (19%) shoppers.
Go People CEO Wayne Wang said the now imminent arrival of Amazon will force Australian retailers to innovate if they wish to hold on to customer loyalty.
“Amazon is a clear and dangerous threat to Aussie retailers. Its huge range of products and aggressive pricing will enable it to capture the market rapidly in Australia.
"A number of Aussie retailers have said they’ll price match, but not everyone will be able to do that. This will leave a large number of retailers scrambling to win back consumer attention.
“Amazon has really tipped the Australian market on its head, and we can no longer rely on old methods of services.
"Moving forward, Australian retailers are going to have to offer more choice in delivery options if they are to compete with Amazon - this is a real opportunity for Australian businesses to flex a competitive muscle in the fight for consumer loyalty. We need to be just as innovative as Amazon if we are going to survive.”