Amazon Shaking Up Aussie Businesses

Speculation has arisen regarding a shake up in retail, as global retail giant Amazon looks to Australian shores, with JB Hi-Fi and Harvey Norman fared to loose out.

The world’s largest online retailer Amazon, is predicted to generate sales of electrical products worth $4 billion in Australia, which would negatively impact on JB Hi-Fi and Harvey Norman.

JB Hi-Fi, which recently acquired electrical goods chain The Good Guys, could see an earnings slump of 23 percent once hit, while Gerry Harvey’s business Harvey Norman is expected to see a 19 percent decrease in earnings, brokers have told Sydney Morning Herald today.

Amazon also recently took to the grocery sector, unveiling Amazon Pantry. Amazon India announced the launch of its new Pantry service last week, where customers can shop online for everyday essentials.

“Using Amazon Pantry, customers can now shop for over 4,000 everyday essentials such as groceries and household products on the website and mobile, fill a virtual box of items and have them conveniently delivered at their doorsteps the following day,” a company statement said.


According to the Amazon consumers can conveniently stock up on recently purchased groceries, and take advantage of increased savings, when compared to traditional supermarket shopping.

Amazon could also becomes UK’s bread and butter when it comes to online food shopping, with recently launched Amazon Fresh. The online conglomerate has teamed up with Great Britain’s fourth largest grocery supplier Morrison’s, to deliver fresh and frozen food to consumers, sometimes as quickly as within one hour.

amazon fresh

Analysists say Amazon is entering into the grocery market, which is already under a great deal of pressure, using their primary strength, delivery, to get ahead. Amazon Fresh comes against established online UK grocery retailers, including Tesco, Ocado and discount grocer Aldi.

Amazon says they are offering low prices across its entire product range. In addition to fresh fruits and vegetables, meat, seafood, baked goods and dairy, customers can also buy from a wide variety of pet supplies, baby, health and beauty products.

Amazon Fresh is also available in North Virginia, U.S., using local merchants through the Local Market Program. Customers can order groceries at the click of a button on their PC or via the Amazon mobile shopping app and have it sitting on their doorstep in a couple hours.



2 thoughts on “Amazon Shaking Up Aussie Businesses”

  1. Mark says:

    When is Amazon Prime going to start in Australia?

    1. James says:

      It’s a long way off, if at all. They need to establish a competitive distribution network in Australia before they can even consider Prime.

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