Amazon Australia has finally launched... and it's frankly underwhelming

Adding fuel to the fire Amazon has offered a one-day delivery service across Sydney and Melbourne over the Christmas holiday period

Amazon's Australia country manager, Rocco Braeuniger, said in a statement the US company would "earn the trust" of Australian shoppers and, over time, create "thousands of new jobs".

One of Australia's leading retailers, Gerry Harvey of Harvey Norman told Sunrise that he's concerned Amazon will "break all the rules" and employ a predatory pricing strategy that means businesses such as his were financially incapable of matching their heavily discounted items.

Similarly, the ABC is reporting that Amazon Fresh, the company's online supermarket offering, will not be launched in Australia.

Orders will be filled from Amazon's new fulfilment centre in Dandenong South in Melbourne.

Amazon is selling Nintendo Switch consoles for $399, significantly cheaper than $469 at JB Hi-Fi, while a Garmin Vivofit Jr. kids fitness tracker is $50 on Amazon compared with $89 at JB Hi-Fi, and the popular Giorgio Armani Luminous Silk Foundation is $93.09 on Amazon compared with $99 at Sephora.

"By concentrating on providing a great shopping experience and by constantly innovating on behalf of customers, we hope to earn the trust and the custom of Australian shoppers in the years to come".

For electronics, we saw a portable hard drive from WD on sale for $89 on Amazon, which again meets the $49 free delivery threshold.




Australian customers can now also access Prime Video and Twitch Prime, for an introductory price of US$2.99 ($4.00) per month.

There are growing fears from local retailers that Amazon, which officially launched in Australia today, will use a unique pricing model to kill off the competition.

While Amazon has been busy hiring for its music offering since before June, filling the roles of Music Curator, Senior Music Curator, Senior Marketing Manager, and Head of Digital Music, Amazon Music Unlimited won't launch until early 2018.

Braeuniger said Amazon will create thousands of new jobs and invest hundreds of millions of dollars in Australia.

"We recognise that Amazon's entry will, of course, impact on the Australian retail landscape, but we view the current price weakness in Australian retail stocks as an over-reaction, given the strengths of major shopping malls, and their leverage to Australia's employment and population growth".

"For Amazon's Marketplace to be successful in Australia, Amazon will need a good product range, including local specialty suppliers".

Australian retail shares have fallen sharply since Amazon confirmed plans for the country in April.

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