EXCLUSIVE: Amazon OZ To Be Re Launched Just In Time For Peak Period
Amazon Australia is set to be relaunched with the big US retailer also set to sell an expanded range of branded products including TV’s.
According to sources the relaunch tipped for November will be backed by a major marketing campaign with at least 3 major TV brands now making their products available to Amazon.
The move comes after a poor launch in November 2017 which several analysts have told ChannelNews was rushed and “poorly executed”.
According sources their latest push will see “aggressive pricing” of premium brands as well as an expanded Marketplace offering backed by fast delivery of goods.
The move comes as several big retail chains in Australia struggle. ChannelNews understands that Target is set to close stores.
Since Amazon launched Big W has seen a surge in business with the big retailer also expanding into new “known brands”.
They are also set to expand their smartphone category and other consumer electronic products.
Morningstar analyst Johannes Faul expects Amazon to account for 5 per cent of all retail spending in Australia by 2028, winning a $24 billion market share by emphasising quicker and cheaper deliveries rather than dramatically lower prices.
Since launching locally in December, Amazon has sold items at the bottom end of, but not below, the online price range of its competitors claims Morningstar.
“We couldn’t find evidence suggesting Amazon pursues a strategy solely based on aggressive discounting across all categories, nor competitors adjusting prices down either pre-emptively, or to match Amazon on every item,” Mr Faul said.
This year Amazon has expanded their distribution into Sydney with a facility twice the size of the first in Melbourne.
“We see the online giant offering industry-leading delivery times and the lowest delivery fees,” Mr Faul said.
Mr Faul believes Amazon’s slow start led to shares in companies including Super Retail Group – which operates Super Cheap Auto and Rebel Sport – and Bunnings and Coles owner Wesfarmers being overvalued.
Faul said the looming fear of Amazon’s dominance had led to Myer being oversold.