Amazon has recently launched in Australia with the goal of becoming a competitor in the $300 billion retail market. Australian launch was bigger than some others such as Spain, Canada, and United Kingdom. Millions of products were stocked and ready to sell in 23 different categories, Amazon confirmed.
Australian retailers were worried about Amazon’s entrance to the market because they could potentially cut the prices down by %30 by selling cheaper products, however, after the launch the retailers had calmed down because Amazon’s prices weren’t exactly cheap. On some products, it was even more expensive than local retailers. Cheap products can also be found but the average price Amazon selling their products at is yet to be a concern for local retailers.
The general public was criticizing Amazon on social media only a day after their launch stating that it is not cheaper and product range wasn’t any impressive. As a reply to the criticisms, Amazon said that ” it is not our aim to be the cheapest, our goal is to provide the best value for our customers”. Despite everything, Amazon already has a customer base in Australia, their website has been in top 3 visited since October.
Another critique that Amazon faces quite often is the huge price gap between the same products compared to the United States. For example, a 3 meter HDMI cable is %78 more expensive in Australia’s compared to that of the United State’s.
Word is out that Amazon paid around 7 million Australian dollars for their warehouse land in Sydney which will help their business grow enormously because the first and only warehouse in Melbourne would inefficient to distribute to all of Australia.
Despite all the critiques and the unhappy majority, Amazon had record sales on their first day in Australia and is continuing to perform better than expected. Many analysts are predicting that Amazon will quickly find its place in the top 5 Australian retailers in a few years time. Their launch was perfectly timed, just before Christmas when everyone is in a holiday mood and would not mind trying out a new online store in Australia.
Almost half of Australians had already been shopping on Amazon’s foreign sites, therefore, it is only expected that they will keep doing the same with the local one.
When the competition between retailers gets really serious it is the customers who benefit the most from this competition. Both Amazon and businesses will now have to keep their prices as low as possible to get the attention of their customers. JB HI-FI has already come up with 3-hour deliveries in major cities if you place your order by 2 PM.