- Amazon is rumoured to be planning the roll out of its full service offering in Australia in the near future.
- Online retailers can leverage Amazon’s logistical might via its Fulfilment by Amazon service.
- Any company that wants to compete with Amazon is going to have to do so by differentiating itself.
Amazon’s footprint is predicted to sink deep into the Australian economy once the US e-commerce giant launches its full service offering in Australia.
There has been plenty of debate around how Amazon’s rumoured full service arrival on Australian shores could potentially impact the local retail industry.
The prospect of purchasing goods online from Amazon and having them in hand within 24 hours is alluring for consumers.
Amazon has been in business for over two decades and is the global leader in e-commerce. The Seattle-headquartered business prides itself on its unmatched ability to deliver convenience to consumers, which starts with its fulfilment capability.
It has been speculated that Amazon may open warehouses in Melbourne and Sydney as early as September. If that were to happen, Amazon’s Australian and New Zealand customers will have their orders fulfilled faster than ever before. The prospect of purchasing goods online from Amazon and having them in hand within 24 hours is alluring for consumers.
Online retailers can leverage Amazon’s logistical might via its Fulfilment by Amazon (FBA) service. Businesses that sell products online can set up agreements with suppliers whereby the product is shipped directly from the factory to an Amazon warehouse. When that product is sold through Amazon, it is dispatched from the Amazon warehouse and Amazon handles order fulfilment and customer service. FBA is a simple solution for small online retailers to use Amazon to better service their customers.
Acuity podcast discusses Amazon in Australia
In episode three of the Acuity podcast (above), host Mike Lynch and co-host Leigh Sujanto chat to leading experts about Amazon in Australia.
Paul Greenberg, CEO of Australia’s National Online Retailers Association (NORA), is optimistic about Amazon’s full service launch in Australia.
"I think we will see a reengagement with shopping,” Greenberg says in episode three of the Acuity podcast. “I think you will see our local merchants up their game.”
“A lot of [larger retailers in Australia] have been working for a long time on building their businesses and getting their paths to profitability right, but I think Amazon will certainly shake things up.
“I just can’t see them coming over the seas like vikings with thousands of boats. I don’t think shock and awe is Amazon’s style.”In the Acuity podcast, Greenberg downplays Amazon’s arrival in Australia as being an invasion on the local retail industry.
I just can’t see them coming over the seas like vikings with thousands of boats. I don’t think shock and awe is Amazon’s style.”
Offering a counterview in the latest episode of the Acuity podcast, Tonya Garcia, a New York-based retail and consumer reporter for MarketWatch, points to the impact Amazon’s success has had on traditional retailers in the US such as Macy’s and Walmart.
“Any company who wants to compete with Amazon in the retail space is going to have to do it by differentiating itself,” Garcia says. “Amazon is doing amazing things with shipping and is making it very easy for customers to get things – not just the right item – but getting it quickly.
“That’s the place where a lot of other retailers who are perhaps traditionally bricks and mortar and have lots of retail locations are trying to play a little catch up.”
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