Amazon is coming in Australia with more products and less delivery time
Amazon is the game changer of the retail industry.And they are ready to change the environment in Australia too.
It will transform the way of shopping in Australia and build a threat for the supremacy of established local retailers.
“We are going to destroy the retail environment in Australia,” an executive told media.
Amazon is already working in Australia and Australians are purchasing products. But these are limited products like Kindle e-Books, e-readers, audio books and some streaming site videos.
So what will be available when they roll out their full suite of retail services into the Australian market? Perhaps an easier question is: what won’t be available?
In US Amazon offers everything from groceries to power appliances. You just need to type the product name and list will be visible to you, now you can order and sometimes there are huge discounts. The same prospects they are looking in Australia too.
How it is working in Australia now.
Although Australian retailers can purchase items from US stores, but it is a hefty and time-consuming process.
Amazon often declines the Australian credit card or billing address in the attempt of purchase from US site. But to nullify the void, third party forwarding business popped out.
Some intermediate parties were involved; they purchase products for Australian retailer from US Amazon. This increase the final cost of the product and the customer suffer the most.
Amazon wants to eliminate the factor, and after their launch in Australia, the customer can purchase the products in less time and small cost.
Amazon already does $1 billion in sales in Australia by shipping from overseas, according to an analysis by Morgan Stanley.
How are they planning the new process?
They are planning to buy a warehouse about 93,000 square meters in Australia at first. They war planning to operate directly from Australia to make shipment timings obsolete.
The location not yet confirmed but the likely it will be Sydney, Brisbane or Melbourne. Then the next step will be retail offering in Australia, and the plans are on the table now.
Amazon Marketplace, whereby small players can sell their wares on Amazon, will also be a focus in Australia. Some Australian businesses are already using this via the US to gain access to international markets.
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