Amazon made its presence felt in Australia last month with an aggressive launch of its Prime subscription delivery service. At just $59 per month - lower than any other global market - the price-point was highlighted by Morgan Stanley analysts as one of seven reasons why Amazon's Prime service looks set to shake up the status quo in Australia's retail industry.
Tagged With disruption
Amazon finally rolled out its Prime subscription service to the Australian market this week, promising free two-day delivery. At $59 a year, Prime is cheaper in Australia than other developed markets. Morgan Stanley analysts say the low price "shows Amazon's high long-term aspirations for Australia".
Disruption is messy. That's the point - a business rethinks the rules of its industry and forces everyone to scramble and regroup, including customers. Now every purchase you make becomes a choice between two kinds of economy. Buy all your books on Amazon and your local bookstore could disappear; order UberEats and - what!? - your local restaurant might go under. Rent an Airbnb and, yep, you're raising people's rents. But, says The Atlantic's Derek Thompson, only a little.