US-based e-commerce, electronic giant and cloud computing company Amazon.com is expected to make its physical entry into Australia very soon. Sources reveal that the retail giant is gearing up for a July 2017 launch Down Under. Amazon’s online operations could see a major chunk of its present resources being directed towards Australia. It will primarily start with region-specific products and brick-mortar shopping platforms.
Why is Amazon.com shifting Down Under?
With the success of its Amazon Prime Now program across the world, it is the ideal time to launch its Australian version very soon. Amazon.com could be tying up with third-party logistics and private warehousing agencies in Australia. Metcash has already pitched in its interest to partner with Amazon when it arrives in Australia in 2017. While speculations put the release date somewhere in mid-September, it could be July with an element of surprise.
As per reports, Amazon could be selling products at 30% lesser price than local retailers. The plan is to “destroy” every single retailer. The company is expected to specifically launch regional version of its online platform to cater to a large number of customers.
Will Amazon’s Australian venture be any different?
Amazon.com could see major sales in initial days through online orders. By 2020, it is expected to generate anywhere between $3.5 billion to $4 billion worth of sales from Australia alone. So yes, the setup will be different from what Amazon.com has played out in the USA, Europe and Asia so far.
To boost its presence Down Under, the $A84.7 billion company could be launching small kiosks and showrooms similar to Aldi. Products can be booked through the app or a kiosk touch screen inside the store. Drive-thru lanes will also feature in these stores.
It is expected to offer free shipping on a huge range of products belonging to grocery, hot meals and electronics.
Should local retailers in Australia worry about Amazon’s entry in 2017?
Almost 40% of the Australian population shop online every month. Amazon’s intense commitment to Brick and Mortar model will unleash a wave of new physical shopping experiences in Australia. Top Australian retailers like Woolworths Limited, JB Hi-Fi and Wesfarmers are wary of Amazon’s roadkill in 2017. According to Ray Ridgeway, the Chief Commercial Officer for World First Australia, Amazon’s entry into Australia will force established retailers to reevaluate their marketing models and pricing strategies.
For now, Amazon is perfectly poised to deliver online-offline shopping experience with the highest satisfaction. A Black Friday in July 2017 could spell a new dawn for an Australian retail industry.
Image courtesy: Robert Scoble via Flickr