Amazon finally launches Australian retail operations
US e-commerce giant Amazon has at last launched its Australian operation.
Amazon’s delivery offering is now live in Australia
In a move that has been rumoured for over two years and dreaded by local retailers for more than a decade, the launch of Amazon locally threatens to shake up Australia’s $165bn retail sector.
Amazon’s head of Australian operations, Rocco Braeuniger
While access to Amazon’s digital books Kindle store and streaming service Prime has been available for some time, today marks the first time physical products are available from Amazon locally.
“Focusing on customers and the long-term are key principles in Amazon’s approach to retailing,” said Rocco Braeuniger, country manager of Amazon Australia. “By concentrating on providing a great shopping experience and by constantly innovating on behalf of customers, we hope to earn the trust and the custom of Australian shoppers in the years to come.”
The updated site has a focus on fashion lines along with electronics, white goods and home improvements.
In August, the retailer appointed German Rocco Braeuniger as the head of Australian operations.
The appointment of Braeuniger followed Amazon’s confirmation of its first fulfilment centre in in south-east Melbourne and the company starting its hunt for a local creative agency.
Opinions have varied about the effects of Amazon upon Australia’s domestic retailers with industry figures observing the company is already a well established local brand in the minds of consumers.
Industry surveys have indicated Australian retailers are underprepared for the global giant’s arrival in the market with Interbrand’s Nathan Birch warning local brands were falling behind the brand recognition of Amazon and those of the other major US tech companies.
Advertisers have also been put on notice that Amazon’s entry threatens to disrupt the local market with MediaCom’s Roger Dunn warning in Mumbrella back in July that adland needs to ‘wake up’ to the risks posed by the giant’s Australian entry.
Go to Google and type in “Amazon Wages” then click on news. All around the world, everywhere that Amazon opens, the public get to enjoy low prices, free delivery and a business that always pays below average wages. You cannot find a nation where Amazon have not put a downward pressure on wages and working conditions. Low prices have a cost. Google it.
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but Nick, cutting costs out of the business is how all companies drop prices
But Nick if businesses cut costs by aiming to reduce wages and working conditions then in 50 years from now…….you get the picture. Making labour work smarter is good but making labour work for less is not exactly a strategy for Western domination. Hopefully we can compete on the world stage with high wages and high skilled workers. Let’s leave the $7 an hour (with no super of holiday leave or loading) retail and service sector world to the Americans.
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Breaking… Amazon range and pricing incredibly underwhelming according to new Google Chrome tab.
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Another over hyped launch that has failed to deliver anything groundbreaking, lets face it, its nothing we didn’t have already from other providers…surely we are learning the lesson here that just because it works in the US doesn’t mean it will scale down effectively and work here.
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Tell me about it Keith! The hype machine was full bore in the last 6 months from various news outlets! You’d be forgiven for thinking the media turned on Aussie retailers and didn’t give them a chance in hell to compete!
I’m gobsmacked at how much of a joke Amazon ranging and pricing is across the board. That much hype deserved a wider breadth of product ranging and steeper pricing than what we are currently seeing from Amazon to lure the Australian shopper out of their current buying patterns.
We are a fairly savvy bunch of shoppers here in Oz from my observations, we like to be on trend at a competitive price and can justify spending a little more as long as their is extra value provided in return.
How I see it Amazon haven’t bothered to tap into these needs to hand over our hard earned $ at launch, maybe in 2-5 years it might be a different story, only Amazon can justify spending that amount of time and $ toiling in a market to come up with the right formula…
Until then support your local retailer online, not hard to do, just open up a new tab and be pleasantly surprised at their offering vs Amazon.
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