Amazon launches in Australia, retailers urged to prepare for battle

Posted December 05, 2017

"We believe Amazon's full entry into Australia will likely be a success", UBS analysts said in a note ahead of the launch, adding that Australia was an "attractive market where online is under-penetrated". The much-vaunted Prime service - which bundles offerings like priority shipping, streaming and Kindle content in one package - is not now available, with expectations it'll come in mid-2018.

Tech and retail behemoth Amazon has finally touched down for real in Australia, offering customers millions of products across more than 20 categories.

Customer orders will be processed at Amazon's new fulfilment centre in Dandenong South.

After much anticipation and hype, Amazon is offering free delivery on eligible orders above $49 that are sold by Amazon.

Meanwhile, some items are actually cheaper to purchase on the Amazon US site and have shipped to Australia.

"For Amazon's Marketplace to be successful in Australia, Amazon will need a good product range, including local specialty suppliers". "The Aussie retailers breathe a sigh of relief as they realise that the range is very bad and the prices are exactly the same".

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. Amazon also sells its own brand of accessories like cables.

Chairman of the Australian Competition and Consumer Commission Rod Sims last week said the arrival of Amazon would be good for consumers, but less so for incumbent retailers.

The company has now set up a massive distribution warehouse on the outskirts of Melbourne city, on the country's east coast where four-fifths of the population live, and the company hopes to cut delivery time to as little as a day.

"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", he said.

In 2016, more than 100,000 small businesses across the globe achieved sales of over US$100,000 through selling on Amazon.