Top Menu

Amazon confirms Australian arrival: retailer reaction

 

ADVERTISEMENT

After what feels like years of speculation, Amazon has officially confirmed its plans to expand down under.

Amazon launched a dedicated Australian site in 2012 followed by a Kindle Store on Amazon.com.au in 2013.

In a statement, the company said its “next step” is to bring a retail offering to Australia.

“We are excited to bring thousands of new jobs to Australia, millions of dollars in additional investment, and to empower small Australian businesses through Amazon Marketplace,” the company said.

“We are optimistic that by focusing on the things we believe customers value most—low prices, vast selection, and fast delivery—over time we’ll earn the business of Australian customers.”

ADVERTISEMENT

What this means for local retailers

Ivan Lim, co-founder and CEO of furniture ecommerce business Brosa, said he believes Amazon’s Australian arrival won’t spell the end for local retailers.

“Amazon will be a big player but this doesn’t mean it will be the only player,” he said.

Rather than seeing the online giant as a direct threat, Lim said it is actually an opportunity for ecommerce in Australia to grow.

“We forget that while online retailing is growing rapidly, it is still a small percentage of overall retail spend so to have one of the best online retailers entering Australia will really grow acceptance of shopping online,” he said.

“We’re excited because the idea of shopping for furniture online becomes a lot more intuitive when more Australians are doing more of their shopping digitally.”

Brosa operates a direct to consumer business model, with orders for furniture placed online, produced by craftsmen and sent straight to the customer. Lim prides himself on customers service and said this is an area where  local retailers can thrive.

“I think business like Brosa that continue to sell unique products…while offering a compelling customer experience—great last mile delivery, deep product knowledge, immersive selling experiences etc.—beyond just selling a commoditised product will continue to thrive.”

View all our previous Amazon coverage here.

 

Want the latest retail news delivered straight to your inbox? Click here to sign up to the retailbiz newsletter.

, , , , ,