Friday, 15 December, 2017

Amazon launches in Australia

The arrival of Amazon in Australia poses a threat to a market already grappling with weak consumer confidence amid tepid wages growthMore The arrival of Amazon in Australia poses a threat to a market already grappling with weak consumer confidence amid tepid wages growthMore
Cecilia Poole | 05 December, 2017, 02:01

If you walk into your local Harvey Norman this morning and the sales staff are rude to you, well it could be for a multitude of reasons that are nearly certainly separate to you and your existence, but the most likely reason is that Amazon launched in Australia this morning, just in time to completely up end the retail sector for Christmas.

A number of well-known Australian brands including Bonds, Puma, Lego, L'Oreal and Sonos have already started selling on the Amazon Marketplace.

The news comes shortly after the ACCC's announcement which informed it would not offer protection for "uncompetitive" firms, even if it meant they could fail at the hands of Amazon Australia.

In the lead up to Christmas it is offering free delivery for "eligible" products over $49 and one-day delivery for "select areas".

Rocco Braeuniger, country manager for Amazon in Australia, said focusing on customers and the long-term are key principles in the company's approach to retailing.

"They can sell at whatever price they like, but I can't and Woolworths can't and Coles can't, how come Amazon can do what they like and break all of the rules but none of us can?" Local retailers like David Jones and Myer have been scrambling to launch their own "premium" in-store services and price matching strategies or revamped online stores ahead of Amazon's arrival.

"Over time, we will create thousands of new jobs and invest hundreds of millions of dollars in Australia", he said. "The result will be an ever-improving customer experience driven by the regular introduction of new products and services that we hope customers will love", Braeuniger added. Customers can enjoy exclusive Amazon Prime Originals, The Grand Tour Season 2 premiering December 8, as well as popular movies and TV shows as part of Prime Video and receive free in-game loot, like exclusive characters, boosts, skins, and more as part of Twitch Prime.

There are growing fears from local retailers that Amazon, which officially launched in Australia today, will use a unique pricing model to kill off the competition. Prime offers tens of millions of members around the world an unparalleled combination of shipping, shopping, and entertainment benefits.

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