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Amazon Goes For Fast Delivery, Over Cheap Prices

Contrary to many market commentators’ speculation, Amazon Australia’s debut pricing is not significantly lower than that offered by traditional Australian retailers, instead, the e-commerce giant has opted to push fast delivery times.

The e-commerce giant is globally renowned for forfeiting profit for sales volumes, through an aggressive pricing strategy.

CEO of Retailer Doctor Group, Brian Walker, is confident that Australian retailers will fight back against Amazon, advising that consumers should still price check for the best deal:

“Before you jump into Amazon, just check with retailers that are out there, most of the bricks and mortar offer many significant discounts off the recommended retail price as well”.

ChannelNews did a price comparison (here) featuring an Acer notebook, MacBook Pro and HP Desktop and found that Amazon did not come in cheapest.

Some online retailers such as Kogan are also offering their product’s on Amazon Australia, however, it seems items are more expensive on Amazon than on their own websites – e.g. Kogan TVs, Samsung smartphones and older iPhones.

Concerning delivery, Amazon Australia is offering nationwide coverage, with free delivery on orders over $49.

Amazon Australia is offering 1 business day delivery to eastern metro areas for $9.99, and an impressive 1 -2 business day delivery to Perth for $11.99.

Delivery is conducted via a range of logistic partners, however, Amazon has not explicitly stated which delivery companies it is employing.

For third-party sellers, Amazon Australia is not currently offering fulfilment services, however, this is expected to roll out sometime in the future.

As compiled by cnet Amazon Australia is quoting the following delivery times for products “sold and fulfilled by Amazon” (i.e. not third party sellers):

[Source: cnet]

Market commentators formerly forecast that Amazon Australia would endevour to undercut Australian retailers by 30%.

Its unclear what pricing strategy may roll out in the future, with Amazon Australia Country Manager, Rocco Braeuniger, affirming that the e-commerce giant has the ‘long-game’ in mind, affirming it would be “constantly innovating on behalf of customers… to earn the trust and the custom of Australian shoppers in the years to come”.

It has also been revealed that Amazon Prime will come to Australia in mid-2018. In the United States, the $99 annual membership gives users unlimited free delivery, and in some areas provides two hour delivery.

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