Australian Retailers Prepare for Amazon’s Arrival

Australian retailers and landlords are preparing for the arrival of US giant Amazon to Australia, expecting great competition and disruption to the market.

Caroline McCulloch, founder of footwear brand Frankie4 said e-retailers should ignore Amazon’s invitation to join its Marketplace. “To choose Amazon would place enormous pressure on our well-established stockists, who have provided a wonderful platform for our brand to grow,” McCulloch told AFR.

“We wouldn’t be able to compete with Amazon on search engine optimisation, they would outrank our own website, we’d lose full margin sales to them, and I suspect they would begin to feel like a competitor rather than another sales channel.”

However, toy maker brand Hunter Products is more enthusiastic about Amazon’s expansion to the country. Sales manager James Hunter said the company would “jump at the chance” of joining Amazon’s Marketplace. “The traffic to the site is amazing and Amazon is able to move large quantities,” Hunter told Fairfax.

Gerry Harvey, founder of Harvey Norman said he would be ready to go head-to-head with the American behemoth. Harvey Norman is expected to compete directly with Amazon in electronics sector.

“In America and other parts of the world, they have just demolished other retailers, no question about that, and they send a lot of retailers broke,” Harvey told News Corp on Monday.

“[But] we will be out there fighting them like no American retailer has ever fought them… Any price that they put we will beat or equal.”

Last week, Amazon announced that it will open an official Marketplace platform for third-party sellers in the country. It reportedly has signed a lease at the Goodman Group’s Oakdale estate in Sydney.