Amazon confirmed what many have been speculating for the past 12 months, as they announced the launching of their retail services in Australia which could come as soon as July this year.
The official announcement from Amazon will be sending the offices of many retail outlets into mayhem as they prepare for the impending arrival of what could disrupt the very foundation of Australia’s sales industry.
Amazon have already been in Australia since 2012, first launching their cloud subsidiary Amazon Web Services and a year later the Kindle Store which have been great successes in the Oceanic region.
They now believe that it is the right time to move their revolutionary retail operations to Australia, with suggestions that they will maintain their 1 hour delivery service for Amazon Prime members.
“Amazon Web Services launched an Australian region in 2012, we launched a Kindle Store on Amazon.com.au in 2013, and we now have almost 1,000 employees in the country.
The next step is to bring a retail offering to Australia, and we are making those plans now,” they said in a statement.
Amazon say that their next aim is to strengthen Australia’s small businesses as well as boosting the local economy as they look to bolster their employment numbers to ensure their transition into the Australian market.
“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.”
Amazon’s retail operations are sure to change the way the Australian market works, as Amazon’s competitive prices and quick delivery times already go against what major market shareholders like Bunnings Warehouse and JB Hi-Fi who hold $11.5 billion and $3.9 billion of the revenue respectively from the $300 billion retail market in Australia.
Amazon’s initial strategy is likely to begin with a straight from the warehouse to your doorstep service, with physical bricks and mortar stores using Amazon Go technology seemingly a few years away.
A study by Morgan Stanley suggests that Amazon’s progression into capturing the market will be quick, as they believe that Amazon will achieve more than 5% of the Australian market share within five years of entering the market.
The news that Amazon will be entering the Australian market can only be good news for consumers though, as their entrance will only make the customer experience better as well as push other businesses to match their innovative processes.