The Megalodon shark popularly known as Amazon is circling Australian retailers - and they've got nowhere to hide. The online shop's imminent launch in Australia is going to have a significant impact on local retail - and some will be bitten worse than others. Here are the businesses that are set to lose the most, according to the latest analysis from UBS.
Financial services provider UBS recently released a new Australian Online Retail report comprising a consumer survey, global case studies and discussions with industry CEOs.
The graph below represents the assumed margin impact by retailer in basis points:
Yikes! It's worth noting that Amazon is also launching an eBay-style Marketplace in addition to its own e-store platform. In other words, third-party retailers have the opportunity to join forces with the behemoth and sell their wares on its site. (To jump aboard, merchants will need to pay Amazon $49.95 per month, plus a 6-15% commission off the top of sales.)
The UBS report acknowledges that the impact of Amazon will "vary by sector", with electronics, apparel and cosmetics merchants expected to be among the hardest hit.
“We believe that on the whole the negative reaction from retail share prices has been over-done, with retailers with lower exposure, attractive valuation and a differentiated exposure to limit the impact," UBS said in a statement.
You can check out everything we know about Amazon's Australian launch in our in-depth guide.
Amazon is, we suspect, just days away from launching their online retail service in Australia. This means that you will soon be able to buy everything from food to electronics without paying exorbitant international shipping fees. As the launch inches closer, more and more questions are being answered about Amazon’s arrival in the Great Southern Land. We’ve rounded up everything you need to know.
[Via Business Insider]