Australian retailers are preparing for Amazon to enter the Australian market by the end of 2018.
Having already shipped packages to Australian customers for years, large warehouse distribution centres are now scheduled across Australia. Australian customers will soon experience a far lower shipping cost and have access to features such as Amazon Prime as well as the grocery arm, Amazon fresh. Amazon management has said there is no plans to roll out their innovative 'checkout free' Amazon Go brick and mortar stores anytime soon.
Despite the smaller sized market, Australia is seen as a great opportunity for expansion due to high level income and population centres concentrated in a handful of larger coastal cities.
The retail industry has lobbied the federal government to reduce the GST free threshold to combat the online competitors who often avoid paying Australian taxes.
The impact of Amazon will no doubt have a long lasting impact on not just the retail sector, but likely has a negative flow on affect for the freight industry also. Amazon now leases its own aircraft to service high volume routes and is building out its own transportation hubs in the US.
Digital Service by Vixen Internet Solutions