John Winning, founder of Appliances Online and CEO of the Winning Group, says the only retailers under threat from the launch of Amazon in Australia are those sitting back using the same model they always have.
“Amazon’s arrival in Australia isn’t going to kill retail, it’s going to kill bad retail,” the electrical and white goods retailer told Business Insider.
“Those retailers that are just kind of hanging in there, with the same logo, same model, same products and same price, are the ones who are going to be the most affected.
“Amazon is about to get really close to the customer with more stock and cheaper prices, so retailers that offer the same sort of SKUs (stock keeping units) as everyone else will have a fair fight ahead.”
Amazon yesterday launched its retail offering, with millions of products and one-day delivery, on its Australian website.
Among the goods on sale are clothing and shoes, video games, consumer electronics, tools, toys, home improvement, beauty products, and for the first time Amazon’s Fire TV Stick.
Winning says Amazon’s launch doesn’t worry him.
“We have been planning for their arrival since the inception of Appliances Online 12 years ago,” he says.
Australia is one of the most difficult to deliver in and Winnings has made a significant investment in developing a national logistics network.
Winning says his group now has the best bulky good delivery team in Australia.
“With Christmas fast approaching it will make it tough to have stock delivered in time,” he says.
“One of my colleagues this morning went to order a $4.99 water bottle and even though it was in stock, it wouldn’t be delivered until 10th January.
“Amazon’s three-tier delivery service model is price differentiated based on location, charging as much as $20.00 for deliveries to remote locations.
“I presume we will see a much stronger Amazon next year and when Amazon Prime becomes available in mid 2018, it will make them a stronger competitor, but it will only give them a service that we already offer for free; next day delivery.”