Media reports in Australia have announced the arrival of online retailer Amazon into the Australian marketplace.
The Daily Telegraph says, “AFTER one failure to launch, plenty of speculation, and just as much anticipation, Amazon snuck into Australia under the cover of darkness overnight, promising to deliver “millions of new products” Down Under.”
Similarly, The Sydney Morning Herald reported the Amazon Australia launch to be, “offering everything from pyjamas to power tools, and from video games to vinyl records.”
While there are some good deals to be had, the selection is far from comprehensive and prices are offered by many different retailers on Amazon’s website, others were no cheaper than existing Australian department stores, and some were significantly more expensive.
According to the Daily Telegraph, “The company’s arrival in Australia has been tipped to shake up the retail industry, with predictions Amazon Australia would put price pressure on department stores and retail chains, in particular.”
Amazon will be a huge threat to bricks-and-mortar retailers, particularly those who deal with small commodity items such as printer cartridges and other office products.
Earlier, the Commonwealth Bank Retail Insights Report found 49 percent of Australian retailers are unfazed by Amazon’s push into the Australian market, with only 11 percent seeing the company as a significant threat to their business. However, in the US the so-called ‘Amazon effect’ has seen its share price skyrocket as shoppers flock online, while bricks and mortar retailers have been closing stores. CommBank’s National Manager of Retail, Jerry Macey, told news.com.au many Aussie retailers had no idea what they were in for. “30 percent of retailers said they aren’t even aware of Amazon and that was even bigger number for small companies, purely online stores, or retailers in rural areas. This is concerning when you consider the impact Amazon has had on the US, a very mature market.”