Amazon has been among the biggest names in the world of online retail. The company has brought forward many changes in the way we shop online. It has made life easier for many. Amazon has been tapping into various other sectors like AI and digital assistants too. However, despite all these monumental accomplishments, it is surprising that Amazon is yet to reach Australia! Amazon in Australia is soon going to be a reality.
Reports indicate that Amazon is actively seeking for warehouses in the land down under, and once the setup is ready, it won’t be long before it starts off in the island nation. Amazon in Australia has always been a question of logistics. One of the biggest problems that Amazon faces in this country-continent is that of distance. Despite being the same size as that of the US, the country houses only 25 million people, which means that distance between two people can be massive at times.
Australia has typically been a brick and mortar stronghold - the last such stronghold of developed nations. With Amazon in Australia about to start off as soon as the warehousing is adjusted, it would lead to a major price war where the profits of the retail outlets are all set to experience a major fall. Local electronics chains such as Harvey Norman Holdings Ltd. and JB Hi-Fi Ltd are expected to be the worst affected after Amazon comes to Australia.
As we mentioned earlier, same size as the US, but a much lesser population. This would result in another problem for Amazon in Australia - the cost of faster deliveries can tend to be higher.
“It is costly to establish, develop, and maintain international operations and websites,” Amazon says in its latest report. “Our international operations may not be profitable on a sustained basis.” A Sydney-based representative for Amazon declined to comment on the specific challenges it will face in Australia or say when it will launch a retail offering. Amazon has sold e-books in Australia since 2013.
