Consumer trust for the Amazon brand in Australia has dropped 9% since August 2017 according to research from Retail Doctor Group.
A report from the group found that only 49% of Australians felt that Amazon was a brand they could trust, down from 58% in August 2017.
However, the data suggests that this could come from the brand's lack of presence in Australia with 38% of respondents saying that Amazon's newness in the Australian market was the leading reason for a lack of trust in the brand.
The report also found that 70% of consumers surveyed said that they had not shopped with the international retailer since its launch last year.
The research goes against retailer expectations with 97% of retailers surveyed stating that they expected their customers to start shopping with Amazon.
The report also found that all retailers surveyed predicted that their customers would spend less with them as Amazon's presence in Australia continues to grow.
However, retailers have reported that the impact of Amazon on retail business in Australia has been muted with 85% of retailers stating the the launch has had no effect on their business since its launch.
While retailers have seen minimal impact so far from Amazon, many businesses have made changes in preparation for the future with 56% of retailers stating they have changed their work practices since Amazon's launch.
The report found that the biggest shifts came through changes to in-store experiences (25%) and online offerings (21%) while brands also reported increasing their investment in business information systems and strategy development.