Here’s an interesting perspective on the impending Amazon launch from Roy Morgan CEO Michele Levine:
https://www.linkedin.com/pulse/amazon-australia-science-behind-hype-michele-levine/
3 Likes
Very interesting link Brendan re: the comments on grocery buying habits . In Altona , the suburb I live in , we have 2 Coles New Worlds and three Aldis . One Aldi store is next to a Coles New World , the other less than 5 minutes away . /
The Coles New Worlds doing a thriving trade yet the Aldis , especially at night , are often empty. This seems strange to me because of all the hype about Aldis low prices . There are comparison basket price articles even in Choice showing Aldis are clearly cheaper as well as considerable time over the years on all media extolling the advantages , price wise , of shopping at Aldis ./
It may be a parochial attitude that seems to pervade the people in our city,Altona , regarding their buying habits . I have lived here 36 years and in a discussion regarding a council decision recently was quickly informed when I attempted to make a comment . " Shut up what would you know . You weren’t born here " True story , hmmm , I wonder when I will be accepted as a "local " . /
Time will tell with Amazon . Competition is always good . Woolworhs have no large super market in the Altona area in proximity to a Coles New World . They have small shops on the peripheral of the area . I wonder if they are worried that they would fail as IGA and Foodworks did when they opened up and tried to challenge the Coles juggernaut . Peoples buying habits can indeed be strange and unpredictable .
4 Likes
That’s a good point on Aldi - as you say, prices aren’t everything and it’s yet to be seen how the Australian market will react, and what areas of the market will or won’t change. Speaking to friends and colleagues who have lived overseas recently, they all talk about the noticeable difference of ‘life without Amazon’ (as they define it, as obviously we have Amazon in some forms), but our localities are certain to be a different beast. I don’t really have any basis for comparison, having lived in Sydney for the last few years and country NSW before that.
On that note, I hear you loud and clear on the local politics points too. I remember hearing more than once “If you’re born on X street, you’ll die on X street”. An alarming concept for me, said with plenty of fondness for my own local areas and regional towns in general.
4 Likes
I don’t have a issue with it,as long as they pay their fair share of tax.Which will be questionable
2 Likes
They also have a reputation for undercutting every local business to gain market share, even it it causes the parent company to have significant losses. It is a form of predatory pricing to squeeze out competitors whilst gaining market share. I just hope the ACCC monitors this as this is what they have done in other countries…with prices rising and the local arm of the business becoming profitable when they have distorted the retail market in their favour.
Unfortunately this is how they operate and use their finamcial backers as well as the rest of the profitable part of their business to enter new markets.
I don’t think I will every buy from Amazon as I find this paractice unethical and against what Australia is built on.
3 Likes
Totally agree with you .
2 Likes
This will be a test of the ACCC to keep predatory trading out of this market. But the ACCC has hits and misses on the board in this regard from previous cases. The thing I hope for from other businesses is a big cut in the “Australia Tax” in response to this entry. The ACCC actively and sternly monitoring and the cut in “Australian” pricing could mean a big boon for consumers, a boon for real competition, and really a boon for Australia. If a leg of this fails then it will be to our detriment in the end.
1 Like
Amazon could be a disruptive influence to commerce or another failed foreign venture, and there are many.
However, our market is historically one of predators such as the big 4 banks and their subsidiaries pretending to be competing against each other, the grocery duopoly+0.5, and so on, yet there is hand wringing concern about ‘Australian’ businesses as if they somehow have high ground worthy of protection.
Some of our ‘business’ is nothing but paper shuffling and billing as the value added, using electricity retailers as an example there is no value added yet they grab a meaningful part of the total cost of power, and most offshore profits and export their dividends while investing pretty much nothing except some desks and ICT equipment. It is good to keep perspective that Amazon is coming but the sky is not falling any faster because of it.
Does it matter if the target of discussion is a foreign corporation or a self interested person like Gerry Harvey (it is all about the GST) or a James Packer (it is all about gambling), or real estate developers/‘investors’ who look Australian-enough in law? Even the old line co-ops have evolved to looking at their own dollars rather than sharing their wealth with their membership, and are happily being bought by foreign interests.
I second that as long as ‘they’ pay tax (what are the chances) and create first world jobs (another topic) that support the country, it does not matter as long as we have sufficient exports to maintain foreign reserves. Our best and brightest already have to consider emigrating due to the lack of opportunity here, many do, and Amazon is not going to change that.
Those I worry about I worry about regardless of Amazon, the mum and pop small shops and smaller enterprises. Amazon could accelerate their decline, but that is not just Amazon it is the shifting economy and government ideology re who they take care of.
5 Likes
Sounds cynical but I agree. As long as they are bound by our consumer laws that seems to be all we can ask and expect, and about all we’ll get. They are all self-interested, tax avoiding, faceless organisations - when that’s all they are it doesn’t seem to matter where they are from.
What kills me is the start of the product chain - when we lose manufacturing to offshore - but thats as good as a done deal now anyway …
The sky has already reached terminal velocity … reckon I might crack the first of a few fully imported beers early today …
3 Likes
[quote=“draughtrider, post:29, topic:13392”]
“reckon I might crack the first of a few fully imported beers early today …”
[/quote]
Sounds like a plan .
2 Likes
It appears that Amazon are to launch their new expanded business here on “Black Friday”. This is an excerpt from an article in The New Daily "Quoting the email from Amazon, retail consultant Scott Kilmartin told The New Daily there would be a “soft launch” of the site on Thursday, followed by an official launch on Friday – to coincide with the annual pre-Christmas discount shopping frenzy known as Black Friday.
It will mean Amazon is also up and running for the e-commerce version of Black Friday, Cyber Monday, on November 27."
What won’t be launched at this time is Amazon Prime. My tongue in cheek on this is, that they might just use Shipster TM of Aust Post fame.
The full article can be read at the following link:
http://thenewdaily.com.au/money/finance-news/2017/11/21/amazon-launch-black-friday
Another article which seems to confirm this imminent arrival is found here:
Balance of Trade figures are probably going to take a monster hit from the new trade…Even if taxed the profits moving out will be like floodgates had been opened on a dam.
2 Likes
Very interesting article. Australia (suburban at least) needs retail consolidation. We are flooded with retail space like no other place I travel to. Usually more dense cities elsewhere have fewer - sometimes larger - retail spaces usually further apart. No wonder our costs are high. It’s an attempt to squeeze competition out at our cost eg Bunnings, Chemist Warehouse, Coles are all prime examples…
2 Likes
I’m looking forward to the disruption. I just hope it’s not another Diamaru - all the same products at similar prices. Not because I want to see loss of jobs. I want to see a broader product range without overpaying the Australia tax.
Important: product range, not being gouged by unrealistic local markups compared to international pricing.
Not important: same-day/short delivery, paying GST, paying a little extra for our higher cost of wages etc.
2 Likes
It seems the Amazon launch hit a bit of a speed bump and things are not quite working the way they should. Some sellers have had stock that should not have appeared suddenly being on the site. The suppliers/sellers are also saying it is a much more complex system to put the goods up compared to EBay’s. Early days I guess but you would have thought with Amazon’s history that opening up a store in Australia would have been smoother.
3 Likes
They launched over night. I did a scan for NC headphones and was met with offerings that were at or above RRP + shipping and myriad 2nd line and Asian ‘brands’. The first search was not impressive for me.
A single sample of one consumer looking for one item does not make a scientific survey but if this is it, yawn! It is a nice website though.
3 Likes
For intetest sake, I just looked at Tablets which we may look at purchasing soon…Samsung Galaxy Tab S2 VE 9.7" 32GB WiFi is $640.50 on Amazon, while the same model but 64GB version is available at Officeworks for $597.00 (inc. delivery if not collected instore).
Agree, not an overwhelming start.
5 Likes
This makes for some interesting reading:
2 Likes
I found the comments to that article troubling re increased geoblocking, US [etc] merchants only accepting US [etc] issued cards, and refusals to ship to transhipping address points.
2 Likes
The article also gives the example of the cost of a Playstation 4 Pro (PS4) for $469, compared to $499 at other retailers as one of Amazon’s better ‘deals’. However, EB Games has a PS4 for $479 but it also comes with a fairly recent game, which could also be traded if needed. I think the EB Games offer has it covered value wise, and that’s without negotiating in the store.
4 Likes
About 7 months in, a bit of hype about amazon prime coming to Australia, so I checked on Tums, an American Quikeze but nicer.
The offer too good to turn down for us is (EX is a 750mg version)
but ebay US has many offers (I accept shipping is cheaper to the USA than to AU)
noting an offer on ebay.com.au is
and even offered by amazon.com and it appears it could be shipped to Australia for a total $USD67.11 including GST, or $AUD90.69 at a $0.74 xrate – however I did not try to actually order it to see what the amazon site would do.
We are so fortunate to have amazon bring competition! Oh Australia! 
8 Likes
