Amazon launches Australian site
GERRY Harvey says Amazon should be banned from the country after the global giant launched its Australian site overnight. It comes as shoppers struggle to find bargains on the new site.
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GERRY Harvey says Amazon should be banned from the country after the global retail giant launched its Australian site overnight.
Amazon finally launched under the cover of darkness after the Seattle based company missed a widely tipped November 24 launch date. This was meant to coincide with the US Black Friday spend-a-thon.
Experts in the sector had theorised the launch could stretch out to next year due to supposed glitches in its back end.
The site launched overnight just in time for the peak Christmas shopping period. Prices for many items on the site are more expensive than Australian retail outlets.
Mr Harvey, the Harvey Norman chairman, said Amazon had already been in the country for 10 years and paid no GST.
“I think they should be barred,” he told Macquarie Radio
“They’ve been delivering into Australia now for 10 years or something — no GST. We all pay our GST. This mob have been getting a free kick for that long.”
Prices are offered by many different retailers on Amazon’s website, some were no cheaper than existing Australian department stores, and some were significantly more expensive.
A 65-inch Samsung QLED Series 7 television, for example, was offered for $5999 by one seller on Amazon Australia, but cost just $3996 in JB Hi-Fi.
The Canon EOS 5D Mk IV digital SLR camera with 24-105mm lens sold for $7399 on Amazon, but was on sale for $5600 at Ted’s Cameras, with an additional $200 cashback offer available.
Bargains available on Amazon’s Australian website at launch included a Nintendo Switch console for $399 (RRP $469), and the PlayStation 4 video game FIFA 18 for $40 (RRP $100).
Amazon also stopped short of launching its Prime service in Australia on day one, which includes discounts and expedited shipping times for members in the United States.
The Christmas shopping period is a huge time for Australian retail with shoppers this year expected to spend up to $56 billion in November and December.
AMAZON AUSTRALIA IS SET TO LAUNCH ‘REALLY SOON’, BUT WILL IT BE AS GOOD AS THE US?
Amazon has reportedly paid $7 million for 2.11 hectares of vacant land in Sydney’s southwest, adding to its warehouse in Melbourne’s Dandenong South.
Amazon carried out a soft internal launch of its wider Australian offer late last month.
It’s launch in Australia is not without controversy.
Woolworths chairman Gordon Cairns a week ago said manufacturers selling directly through Amazon risk “cutting their own throat” by handing the online retail titan the power to dictate their product prices.
SUCKED IN: NO SYMPATHY FOR AUSSIE RETAILERS AHEAD OF AMAZON LAUNCH
Mr Cairns, a former Lion Nathan chief executive who has also held senior roles at PepsiCo, Cadbury and Nestle, said food and grocery suppliers should “consider the long-term ramifications” before they “step into the breach” of doing business with Amazon.
“If they go onto Amazon and Amazon cuts prices substantially, what that forces other retailers to do is reflect on whether they should be stocking the brand if they can’t do it and make money,” he said yesterday.
Amazon have been contacted for comment.
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