Last week, we asked our readers what excited them most about the launch of Amazon shopping in Australia. The choices were: Cheaper prices, more variety, faster shipping and forcing improvements to local retail. The results are now in, and the ranking might surprise you – especially if you work in retail.
For those who haven’t been keeping up with the news, Amazon has confirmed it will be bringing its online shopping platform to Australia. The company is building a 24,000 square metre fulfilment centre in Melbourne which will house “hundreds of thousands” of products.
“We will be focusing on offering our Australian customers low prices on a great selection of products,” Amazon said in a statement.
“This is just the start,” it added, somewhat ominously for its rivals.
This has understandably spooked traditional retailers, some of whom have begun preemptively slashing prices in a bid to compete with Amazon’s local launch. For its part, Amazon has promised to offer local businesses the ability to sell their products through the Amazon Marketplace – if they’re willing to give Amazon a cut, of course.
Meanwhile, various analysts are claiming that cheap prices are not what retailers should be focusing on. Instead, the biggest threat will come from Amazon’s fast and reliable delivery network.
Others claim it all comes down to a wider product selection. (i.e. – Why choose from a traditional retailer’s limited offerings when thousands of extra products are just a mouse click away?)
It seems everyone has a different opinion on precisely how Amazon will sway Aussie customers away from traditional retail. So we went and asked our readers. Here are the results.
[Note: While we don’t share internal poll data publicly, I can confirm the poll below received thousands of votes; enough to be an accurate representation of what online shoppers are thinking.]
What most surprised us about the above results is the high placement of forced improvements to local retail. It seems a lot of you are more interested in the flow-on benefits that Amazon’s launch will bring, rather than the shopping platform itself. For local retailers, this can only be seen as good news. (Provided they are willing to adapt, that is.)
Interestingly, faster shipping ranked dead last. To us, this suggests industry analysts might be overthinking the importance Australian consumers place on fast delivery.
As you’d expect, cheaper prices is the #1 reason Aussies are excited about Amazon. It will be very interesting to see how Amazon’s pricing strategy compares to other markets when it launches Down Under. If it gets too greedy on the ‘Australia tax’ front, we could be getting a damp squib in place of an industry disruptor. Time will tell.
Amazon is finally launching a shopping service in Australia - which means you will soon be able to buy everything from food to electronics without paying those exorbitant international shipping fees. Here's everything we know about Amazon's arrival Down Under so far.Read more