Amazon launches in Australia, offers one-day metro delivery

Violet Tucker
Декабря 5, 2017

Omnicom-owned agency Integer has launched an e-commerce consultancy to help brands leverage Amazon as the e-commerce giant launches in Australia today.

One of Australia's leading retailers, Gerry Harvey of Harvey Norman told Sunrise that he's concerned Amazon will "break all the rules" and employ a predatory pricing strategy that means businesses such as his were financially incapable of matching their heavily discounted items.

Although the catalogue at the moment seems limited, Amazon Australia's county manager, Rocco Braeuniger, has said that "millions" of products from Aussie retailers will be sold on the digital platform, with a long-term commitment being made to the Australian economy.

These regions are likely to be in the Melbourne area, as so far Amazon Australia only has one distribution warehouse or "fulfilment centre", located in the south-east Melbourne suburb of Dandenong South.

Amazon has reportedly bought 2.11 hectares of vacant land in the industrial suburb of Smeaton Grange (above
Amazon has reportedly bought 2.11 hectares of vacant land in the industrial suburb of Smeaton Grange (above

However, in Tuesday's statement, the Seattle-based firm said it "expects" to launch Prime shipping benefits in Australia in mid-2018 - though it did not elaborate.

The move establishes the $550 billion behemoth as an aggressive presence in the sluggish Australian retail sector, just as shopkeepers were hoping for a rush of sales over the important Christmas holiday season.

So despite predictions of rock-bottom prices, shoppers should still be wary of the total cost for Amazon Australia products after delivery fees are added on.

There is, however, no news on whether or not Amazon Fresh will be delivering Aussies their groceries any time soon. "The Aussie retailers breathe a sigh of relief as they realise that the range is terrible and the prices are exactly the same".

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Australian retail shares have fallen sharply since Amazon confirmed plans for the country in April.

Amazon will also feature big brands such as Puma, Lego, L'Oreal and Sonos.

"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. Small businesses selling on Amazon Marketplace globally have employed more than 600,000 people to support their Amazon activity.

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