Amazon says Aust launch is its biggest

Lloyd Doyle
December 7, 2017

The survey results, which were released on 5 December, the same day Amazon's Australian Marketplace went live, was conducted by retail management platform, Neto.

However, responses on Twitter to Amazon Australia has been negative.

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.

"While Amazon was not expected to be extraordinarily low on price, we had expected Amazon to make more of a "splash" in its pricing at launch, yet that did not come through as strongly as expected".

But not everyone is happy about the e-commerce platform's expansion into Australia.

Following Amazon's launch, rival retailer's share initially spiked yesterday, before closing lower: Myer closed flat at 78 cents, JB Hi-Fi closed 1.5% lower at $25.35 and Harvey Norman dropped 2.1% to $4.16.

"Amazon Marketplace will provide local retailers an additional revenue stream, and Amazon's Fulfilment by Amazon (FBA) program will enable Australian retailers to eliminate bottlenecks in their supply chain".

Online sales now account for more than seven per cent of total retail sales, and this is growing at a rate of 5 per cent annually, the ARA and Roy Morgan Research recently revealed.

Online shopping only accounts for between 8-13 percent of total sales in Australia, leaving room for growth in a sector estimated to be worth more than Aus$300 billion (US$227 billion) annually. Their 24,000-square-meter warehouse in the outskirts of Melbourne will offer 23 consumer categories ranging from books, electronics, clothing, home improvement, kitchen goods, health and beauty and baby products, reports Xinhua news agency.

"Amazon's arrival means many things for Australian retail, it means growth, opportunity, and employment and the ARA look forward to seeing the retail industry thrive in 2018", he added.

Other reports by Iphone Fresh

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