Monday, 11 December, 2017

The Wait Is Finally Over! Amazon Launches Down Under

Amazon Australia launch date Jane Lu
Heather Davidson | 05 December, 2017, 02:25

There are growing fears from local retailers that Amazon, which officially launched in Australia today, will use a unique pricing model to kill off the competition.

Customer orders will be fulfilled from Amazon's new centre in Dandenong South.

Analysts remain split over whether Amazon will open a warehouse in New Zealand.

In what is a move certain to scare local retailers, they're offering free delivery on orders over $49 with a one-day service in some areas.

Amazon said it expects to launch Prime shipping benefits in Australia in mid-2018.

Online shopping only accounts for between 8-13% of total sales in Australia, leaving room for growth in a sector estimated to be worth more than AUS$300 billion (RM923 billion) annually.

"My main take away [from meeting USA retailers] was that Amazon's key advantage is that its strategy is driven by data, not gut feel, and the key source of this data is the Marketplace. I think this may prove hard".

"It is likely that small independent retailers and discount department stores will find it very hard to compete".

Amazon, a Seattle-based company, has expanded far beyond its roots as a digital bookstore, moving into the groceries and other retail sectors as well as cloud computing, streaming video, artificial intelligence and more.

The selection at Amazon.com.au includes millions of products offered by well-known Australian brands, as well as small and medium-sized Australian businesses selling on Amazon Marketplace.

"Small businesses and retailers across the country should be excited about Amazon launching in Australia", said Adam Mills, CTO of Koalasafe, which sells a range child-safe wireless routers.

"By concentrating on providing a great shopping experience and by constantly innovating on behalf of customers, we hope to earn the trust and the custom of Australian shoppers in the years to come", Braeuniger said.

"By tapping into our global experience and decade of learnings, we are excited to help Australian brands and retailers thrive in what will be a new retail paradigm in our market", Fowler says.

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