Published: Tue, December 05, 2017
Markets | By Noel Gibbs

Amazon launches online store in Australia

Amazon launches online store in Australia

Amazon Australia country manager Rocco Braeuniger said a "focus on customers" and long-term are key principles in Amazon's approach to retailing.

It's not all doom and gloom, however, with many retailers - including eBay and Kogan.com - affirming that Amazon's entrance will ultimately be good for Australia's retail landscape, promoting innovation and growth.

"While amazon will have an impact on the Australian retail landscape, based on my discussions with a wide range of market participants in the U.S., I remain positive of the Australian retail sector".

The new service will be backed by a fulfilment centre in Melbourne.

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.

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Under the free delivery offer, Amazon said it estimated delivery times as short as three business days in the cities of Sydney, Melbourne, Brisbane, Adelaide and Canberra - home to half the country's population - while shipping to remote areas could take 10 days.

"Incumbent Australian retailers will also be under vast pressure to accelerate existing digital initiatives, especially around smarter use of data and analytics in order to personalise products, services and experiences to customers".

US Retail giant Amazon has launched its Australian website - but Australian shoppers have so far been underwhelmed.

"Australia hasn't seen many digital disruptors in its retail market, and the retail sector is now ripe for disruption".

Braeuniger said Amazon will create thousands of new jobs and invest hundreds of millions of dollars in Australia.

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"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".

Amazon Fresh - the supermarket arm of the multinational - also isn't launching here just yet, which is good news for the Woolies at Marrickville Metro, who just spent a bundle on renovations.

Amazon Marketplace connects customers to millions of products and helps sellers reach more than 300 million active customers worldwide, the company said.

"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".

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