From The Sydney Morning Herald:
The expansion of US online giant Amazon in Australia will most likely be a game-changer in the country’s retail landscape, transforming the way we shop and threatening the supremacy of established local retailers.
“We are going to destroy the retail environment in Australia,” an Amazon executive behind the Australian roll-out told Justin Braitling, the chief investment officer at Watermark Funds Management, late last year.
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Australians, of course, can already buy a limited range of items from Amazon.com.au. Presently these are mostly limited to entertainment, including Kindle e-books, audiobooks, e-readers, and some items on the streaming site Amazon Prime Video
So what will be available when Amazon rolls out its full suite of retail services into the Australian market? Perhaps an easier question is: what won’t be available?
Before launching its operation in Australia, it’s understood Amazon will go through and collect price-points on everything, before setting prices at a 30 per cent discount.
The roll-out here is expected to be gradual, with an initial focus on consumer and home electronics, including non-perishables, such as canned food and other household necessities.
. . . .
Determined Australian bargain-hunters can already buy items from the US Amazon store that aren’t available locally, but it can be a time-consuming and more expensive process.
Amazon will often refuse an Australian billing address or credit card when an attempt is made to buy from the US site, but third-party forwarding businesses have popped up to fill this void.
Shoppers can sign up to these businesses, which provide an intermediary US address, from which the item will be forwarded to Australia. To skirt around the billing problems, Australian shoppers pay the intermediary business, which then pays Amazon on the shopper’s behalf.
Essentially, Amazon’s further expansion into Australia will eliminate this prolonged process. Local warehousing will dramatically slash delivery times, shaking things up for established retailers.
Link to the rest at The Sydney Morning Herald