November 24, 2017

What Does Amazon Groceries Mean for Australia?

By September 2017, Amazon will open its doors to Australian consumers. Founded in 1994 as an online retailer of books, it has grown to become one of the world’s largest retailers in the US. It is expected to generate most of its revenues from online orders initially. It also aims to launch physical stores in every state, offering fresh produce and general merchandise.

Amazon in Australia

The presence of Amazon in Australia is a game-changer as it will obviously bring a significant impact to the retail space, both for online vendors and supermarkets.

The presence of Amazon in Australia is a game-changer as it will obviously bring a significant impact to the retail space, both for online vendors and supermarkets.

Here’s what the arrival of Amazon could mean for the retail landscape of Australia:

  • While online shopping is very popular in Australia is it is in other countries, with Amazon, it can bring a huge impact, especially if they include groceries to their offerings.
  • Hassle-free and cheap shopping is the name of the game. Amazon is known to deliver goods fast and in an efficient manner. In Australia, it is reported to offer same-day delivery on groceries at much lower prices. In this case, shopping on a budget will be a breeze.
  • How fast can grocery shopping be? With the rollout of Amazon Go stores, you can walk in with just a swipe of your smart phone, pick up what you need, then walk out. There’s no checkout counter, no cashier or self-service machines.
  • Australian retailers will need to adapt to prepare for Amazon. Both small and big retailers will certainly take a hit at the presence of an online retail giant, and there is a need to step up where it counts. For instance, Amazon takes the online checkout seriously, making sure that everything is clear and straightforward throughout the checkout. Online retailers in Australia need to improve their checkout processes for faster, more efficient transactions.
  • Another major factor is customer service. Australian retailers will need to have a better understanding of their customers. Going beyond knowing what they want to buy, it’s making changes to product designs and services so they can exceed expectations. This leads to customer loyalty. Also, it will enable them to have offerings that will truly attract customers.
  • If Amazon becomes successful, lower growth of shopping centres is expected, but it will be great news for the industrial sector in case Amazon will need numerous distribution centres across Australia.

The arrival of Amazon on Australian soil is a total shake-up in the retail industry, expected to affect small and large retailers. People want cheap shopping and fast delivery, and the retail giant can offer these and more. Retailers need to move fast to reduce the impact.

Got other ideas on cheap shopping? You can share your bright shopping tips in the comments section below.

About the author  ⁄ Marxa Dillan

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