Amazon launches in Australia, retailers urged to prepare for battle
05 December, 2017, 02:22 | Author: Melinda Barton
One of Australia's leading retailers, Gerry Harvey of Harvey Norman, says he's not anxious about Amazon and warned consumers to beware of its promises to deliver before Christmas.
U.S. ecommerce giant Amazon launched in Australia overnight with its first party retail and marketplace offer.
Customer orders will be processed at Amazon's new fulfilment centre in Dandenong South.
But other analysts said it was not all bad news for local retailers, with Amazon expected to face similar challenges such as low access to broadband and the large size of the island continent.
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.
Well, after a few false starts it's actually happened: Amazon has launched in Australia, with an actual homepage you can go to and literally existing products you can purchase with money and have delivered to your home.
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.
Amazon did not say what time of day it would begin taking orders from its Australian warehouse, except to say it would be on December 5.
However, searches the new Fire TV Stick Basic Edition, which should have been on sale for the first time to Amazon Australian customers for $69, bring up only books.
Australia has always been home to Amazon-registered sellers, but until Tuesday they were limited to sending goods offshore because the Seattle conglomerate did not have a warehouse in the country of 24 million people.
He said Amazon's key strength in the USA is the fact its strategy is driven by data, not gut feel, which is a key source of the marketplace.
"Amazon had paid no taxes on retail in 23 years, they have never made a profit in retail in 23 years and they never will". They will be shipped from a warehouse in Melbourne.
Over time, we will create thousands of new jobs and invest hundreds of millions of dollars in Australia. Small businesses selling on Amazon Marketplace globally have employed more than 600,000 people to support their Amazon activity.
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