Looming sales giant can offer real opportunities

MOST Australians associate Amazon with buying books online, but the US company’s imminent launch in Australia will affect consumers in many ways.

Widely viewed as a threat to traditional retailers, Amazon is more a logistics giant than a Woolworths or Harvey Norman, and insiders say shoppers will be winners through lower prices, greater choice, and more innovations.

Amazon’s arrival was initially flagged for August this year, but there is a growing view that it may be delayed until after Christmas as it focuses on other global markets.

World First chief commercial officer for Australia Ray Ridgeway, whose company helps Amazon with international money transfers, said while traditional retail jobs could disappear, Australian businesses would be forced to improve their online offerings.

“Amazon hasn’t said what date it is but they know they are already causing a stir,” he said.

“Customer service should increase as retailers try and wrestle back customers with value-adding services like money back guarantees, free shipping, free returns and free express shipping.”

Mr Ridgeway said Australia’s relatively small population was not ideal for Amazon, but Aussies were among the world’s top five online spenders.

Paul Greenberg, founder of online retail industry group NORA, said there could be jobs growth in regional areas that became sites for Amazon’s Australian distribution centres, while small businesses had an “incredible opportunity”.

“I hope small businesses, mum-preneurs and homebased businesses are thinking this is a good time to have a play,” he said.

Mr Greenberg did not foresee doom for existing Australian retailers.

“I have a lot of respect for established retailers and I think they will get better at what they do. It’s like playing tennis against a stronger opponent – your shots only get better.”