Published: Tue, December 05, 2017
Research | By Raquel Erickson

Retail giant Amazon launches in Australia

Retail giant Amazon launches in Australia

"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", said Amazon Australia manager Rocco Braeuniger in a statement.

U.S. internet giant Amazon launched in Australia on Tuesday with retailers scrambling to cut costs and boost their online offerings as they brace for an expected shake-up of the sector.

Jeff Bezos' billion-dollar Amazon marketplace has finally made its way to Australia, officially launching on Tuesday morning.

Harvey Norman founder Gerry Harvey said his retail chain would seek to match prices with Amazon Australia if it provided consistently lower price tags on some good, but not if it merely offered "bait advertising and predatory pricing" on selected items.

Orders will be fulfilled from Amazon's new fulfilment centre in Dandenong South, Victoria.

Orders of over AU$49 sold by Amazon will receive free shipping, and a one-day delivery service is available in select areas across Australia.

"While it can be a challenge to ensure potential customers find your website, Amazon already has hundreds of millions of customers around the world searching for new products".

"GetSwift is pleased to announce that it has signed a global master services agreement with Amazon", GetSwift said in an ASX announcement.

"Due to the terms of the agreement the number of deliveries this agreement may generate is now not determinable".

Gartner research analyst Thomas O'Connor said the American firm was unlikely to offer the cheapest prices "across a full range of products" but would deliver special discounts on some goods, and force existing Australian retailers to innovate to keep consumers loyal.

It's a huge moment for Australian retail, and one of the most anticipated launches of the year, after Amazon confirmed in April 2017 it would expand its operations in Australia.

"My main take away [from meeting U.S. retailers] was that Amazon's key advantage is that its strategy is driven by data, not gut feel, and the key source of this data is the Marketplace".

Amazon's arrival in Australia has many domestic retailers nervous, and has seen a number ramp up their e-commerce divisions in an attempt to compete. "I think this may prove hard".

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