Amazon primed for sales bonanza

The US tech giant is giving Australian shoppers a head start on its big annual day of deals.

Amazon hosts its first merchant summit in Australia in November 2017. Country manager Rocco Braeuniger is speaking.

Global tech giant Amazon will kick off its massive ‘Prime Day’ sales event on July 15, with Australians the first in the world to access discounts on TVs, fashion, smart home devices and everyday essentials.

The company said Australian Prime members — who pay $6.99 per month for the privilege — will get access to Prime Day at midnight on July 15 with Australia gaining an extra 17 hours worth of deals than other countries.

The 65 hour shopping marathon will last until 5pm AEST on July 17.

Amazon’s country manager for Australia Rocco Braeuniger said Australian Prime members will get free expedited international shipping with no minimum order for all Prime eligible products during Prime Day.

“We all love a bargain, and last year’s Prime Day confirmed this, being our biggest day since the launch of amazon.com.au,” Mr Braeuniger said in a statement.

“We are excited to announce that this year will be even bigger, with Prime members Down Under not only being the first in the world to have access to Prime Day but also having the longest Prime Day event worldwide, with an extra 17 hours of US deals through the Global Store following the end of the 48 hours of local deals.”

Mr Braeuniger pointed to research showing three in five Australian adults wait for deal events to stock up on household staples instead of buying them when they need them, while almost 4 in 5 Australian adults (78 per cent) are likely to wait for a big purchase to be discounted before buying it.

He said last year retailers clocked up $US1.5 billion worth of sales on Prime Day.

The news comes as shares of a number of specialised beauty retailers fell today after Amazon said it had started selling beauty products used by licensed stylists, barbers and beauticians.

Last year US pharmacy chains and drug wholesalers such as CVS, Walgreen and McKesson Corp lost billions in market value when Amazon took its first step into online pharmacy by buying small existing player PillPack.

Amazon typically uses its scale and online profile to offer a wider range of products at lower prices, putting pressure on margins of existing players.

“Currently, stylists often travel to multiple cosmetology supply locations to get necessary supplies,” Jefferies analysts said. “We expect Amazon to quickly become an important enough channel for brands to carry their top offerings on the platform.”

Additional reporting: Reuters.