Amazon has launched their new grocery service in Australia. The "Pantry Food and Drinks" category has been added to Amazon's local website with brands such as Arnott’s, Milo, Uncle Tobys, Masterfoods, T2, Carman’s and Sanitarium listed in addition to a number of international products. A number of smaller niche products are also on offer as is a decent discount on your first order.
Amazon launched locally about ten months ago and is now adding over 400 local and international grocery brands.
Rocco Braeuniger, Country Manager of Amazon Australia says, "Since the launch of amazon.com.au in December of last year, we have been focused on growing selection and services for Australian customers. Today we are delighted to add to the over 80 million products already available on the store with the launch of Pantry Food and Drinks, bringing greater convenience to customers, underscored by everyday brilliant value and fast delivery".
This move is sure to give Woolwroths and Coles a kick in the pants although their online shopping services continue to grow. Those retailers are doing well, particularly in product calories where products are heavy or difficult to carry according to recent data.
Amazon has an interesting product mix available. For example, while you can buy a single box of Savoy or Jatz crackers, bags of Doritos are being sold by the dozen. But some of the prices Amazon has today are quite a bit cheaper. For example, Amazon is selling 36 cans of Coke for $27.75 whereas Woolworths has the 30-pack for almost $11 more.
Amazon launched Pet Supplies, Travel Store, Automotive and jewelry categories last month. And Amazon Prime can get free shipping on lots of items from those categories.
As part of the launch, Amazon is offering 25% off the total value of your first order. There are some Ts and Cs to watch out for. In particular, the offer does not apply to orders placed with 1-Click and there's a limit of 3 identical qualifying items per order. So, if you own a shop and try to order 50 boxes of something for resale you won't be able to do that.
After years of being caught in the Coles and Woolworths duopoly, we're starting to see their market dominance challenged. With Aldi cementing their position in the market, the arrival of Kaufland next year and CostCo consolidating their position in Australia, there is genuine competition in the retail grocery market.
Amazon's entry into the grocery business here should herald good news for shoppers.