Amazon To Take Over The World: Australia Is Next (Infographics)

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Amazon is expanding to the fifth continent.

amazon-australia-launch-photo

On Monday, Australian third-party merchants received emails from Amazon. They were told to be ready for the sales from Thursday afternoon when the general goods site would be opened to a limited number of customers.

Potential customers could view the list of products starting from 2 pm but goods are not available for sale yet. The full opening is expected to be on the next week.

Why Australia?

Australia is a perfect market for the US global giant, with high disposable income and concentrated populations along the south-east coast. But it has taken 20 years for Amazon to arrive Down Under.

“The common outcome from Amazon’s full entry is a more educated and empowered customer, via increased price transparency and service expectation,” UBS analyst Ben Gilbert said.

Apart from the US, there are 10 other Amazon marketplaces, each with their own Amazon Seller Central Accounts, that include Canada, Mexico, UK, Germany, France, Italy, Spain, Japan, China, and India.

Amazon-countries-MAP-infographic

Amazon is limited

According to the research firm IBISWorld, the appearance of such retailer-giant at Australian marketplace will shake up the local retail industry.

“The company intends to challenge domestic retail prices by offering items for 30% less than domestic retailers. This is expected to appeal to price-conscious Australian consumers, and is likely to affect local retailers that have found it difficult to adjust to a shift in consumer spending behavior over the past five years,” said IBISWorld senior industry analyst Kim Do.

Struggling for the customers, Amazon decided to offer some perks to compete with local retailers.

“The company is expected to focus on providing consumers with low prices, a diverse product range and fast delivery.”

But still there are some limits connected with the location the company will face with. It’s predicted that prices on distribution will be higher than in US.

“Australia’s large geographical size and the dispersed population will lead to higher distribution costs compared with Amazon’s home market in the United States. This is likely to limit the company’s ability to offer Amazon Prime Shipping services in the short to medium term.”

amazon-prime-delivery-photo

Source: Amazon

The biggest – the richest?

According to Amazon’s latest earnings report, the company beat market expectations to post $US43.7 billion in revenue. The company made $US256 million in net income, which translated to $US361 million in comprehensive income after adjustments.

The company is forecasting between $56 billion and $60.5 billion revenue for the lucrative Christmas quarter, which would be 28% to 38% growth from the same time last year.

As Nexter reported earlier, Americans named Amazon as the most trusted and well-liked tech brand in the US. Among the top five big tech brands — Amazon, Apple, Google, Facebook, and Microsoft — Amazon ranks highest among consumers, according to the survey.

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Amazon To Take Over The World: Australia Is Next
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Amazon To Take Over The World: Australia Is Next
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Amazon is expanding to the fifth continent. On Monday, Australian third-party merchants received emails from Amazon.
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