Amazon has left Aussie customers underwhelmed by overpricing, limited products and slow delivery
AMAZON promised millions of products across 20 categories at bargain basement prices but what a fizzer — a 75-inch Samsung UHD television at Harvey Norman costs $4995 — a whopping $2504 less than on Amazon Australia’s website.
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AMAZON has been spruiked as a revolution for Aussie shoppers, introducing a bold new world of online bargains — but so far all it’s done is spread disillusion.
The US online retail giant finally launched Down Under yesterday and rather than leaving us spellbound with its wideranging discounts and eye-grabbing offers, Amazon gave the distinct impression it could still learn a trick or two from its often beleaguered Australian competition.
Customers were left underwhelmed by overpricing, the limited products on offer and the costly slow delivery.
The shopping behemoth promised millions of products across 20 categories at bargain basement prices but its low-key launch was a disappointing fizzer. Despite the hype people could still buy a 75-inch Samsung UHD television for $4995 at Harvey Norman — a whopping $2504 less than on Amazon Australia’s new website. And embarrassingly you could even get your hands on a Kindle e-reader, made by Amazon, for cheaper at Officeworks.
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Twitter lit up with disillusioned shoppers complaining about the poor choice, high prices and slow delivery.
“I sincerely hope #Amazon Australia has a crapload more stuff coming and prices are about to drop dramatically because right now I am spectacularly unimpressed,” Royce Wilson tweeted. And Chris Urquhart tweeted: “Everything I’ve looked for on Amazon to compare prices so far is available cheaper elsewhere!”
Amazon scrambled to adjust its prices, bringing its Kindle Paperwhite down $20 to $159 to match the cheaper price. And there was more good news for some the Aussie retail big boys. Shares in Myer, JB Hi-Fi, Harvey Norman and the Super Retail Group, which owns Rebel Sport, increased yesterday as analysts predicted the Amazon launch would not affect their Christmas sales.
Morgan Stanley research said Amazon would not lead to a drop in prices for Aussie shoppers, as its range on offer is “relatively weak” and delivery times “are not as favourable as existing leading retailers”.
“Consumer electronics is about 13 per cent more expensive on Amazon, apparel and sports is largely in line with leading retailers and dry grocery is 13 per cent cheaper on Amazon versus Coles and Woolworths,” the report by analyst Thomas Kierath said..
No no no #amazonaustralia we are looking for unique products at great prices, not more of the same overpriced stuff we can get everywhere. To other retailers - you can breathe a sigh of relief now.
— Riwka Hagen (@Rifffy) December 4, 2017
Nothing on #AmazonAustralia is cheaper than we’re used to. NOTHING.
— Josh Byrnes (@_yngbld) December 4, 2017
OMG OMG OMG OMG AMAZON HAS LAUNCHED IN AUSTRALIA…
— Trevor Long (@trevorlong) December 4, 2017
Checks prices….
Meh...
However, Amazon did not list any fresh food or alcohol yesterday. The report also said Amazon’s only leading sports brands were New Balance and Adidas while Rebel Sport stocks those plus Nike, Asics, Under Armour and more.
Amazon did match and beat Australian retailers on many items but not by the eye-watering margins many had hoped for. For example the Sonos Play: 1 smart speaker was $228 on Amazon compared to $249 on Kogan.com.
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“I would not underestimate the quality of Australian retailers — there are some very good operators out there,” retail expert Brian Walker said.
“It is not going to be a walk in the park for Amazon.”
He predicted the internet giant could eventually capture up to 45 per cent of online sales but stressed that online sales made up just 8 per cent of all retail sales.
Amazon is fulfilling some orders from its Victorian warehouse, relying on Australia Post to do much of the heavy lifting. Around half of the offerings on its website are from existing Australian retailers who still take care of delivery.
And it pays customers to live in a city with $9.99 next-day delivery in Sydney but $11.99 for delivery within two days in regional cities. Free shipping on orders over $49.99 can take up to a week to arrive.
Amazon headquarters are in the tax haven of Luxembourg where it has just been ordered it to pay almost $400 million in unpaid back taxes. Australia’s Tax Commissioner Chris Jordan has announced the ATO will be launching forensic audits with other countries to make sure Amazon matches Australian retailers and pays its fair share of taxes.