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JSmith

Amazon Likely To Set Up In Australia

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After the demise of the free postage over 25 pounds from Amazon UK back in January ,comes this article today in the SMH.

It appears Amazon are actively seeking warehouse space alone the east coast of Australia. This will put alot of pressure on local retailers, but will likely be a win for consumers. Hopefully cheaper blu's. :)

JSmith :ninja:

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I assume that means GST on orders shipped from AU.

Well yes I would imagine they will be required to conform with local tax laws... Paying GST should still be cheaper than postage from OS though and Amazon's local prices are sure to beat local retailers. JB, Big W, Target etc., watch out.

JSmith :ninja:

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They would be selling local releases correct or US ones, most importantly does it mean we cannot use USA Amazon if so that would really pi** me off.

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The Free Trade agreement might mean region A imports, but I doubt it because of licienceing.

You will still be able to buy from any Amazon as you can now and it's very likely that many of us will still buy blu rays from US and UK due to lower prices (bigger market), better features and release dates.

Yeah, I was going to say that BD's may still be cheaper from UK?

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Yeah, I was going to say that BD's may still be cheaper from UK?

Possibly, but I don't think that will be the best way to attract new customers to their new operations here. I'd say pricing will be similar to OS as they may well use Australia as a base for the whole APAC region.

Quote from article;

"The global giant, which made its name as an online book seller, is now said to be turning its eyes to the Asia-Pacific region."

JSmith

:ninja:

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If Amazon open up shop here, hope we don't get stuck with the litany of delayed release, cropped, lo-res audio, underspecced blu-ray offerings from the local bumbling idiot distributors.

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Possibly, but I don't think that will be the best way to attract new customers to their new operations here. I'd say pricing will be similar to OS as they may well use Australia as a base for the whole APAC region.

Quote from article;

"The global giant, which made its name as an online book seller, is now said to be turning its eyes to the Asia-Pacific region."

JSmith

:ninja:

Yes, I saw that too. I was a bit surprised that they would use Aust. as a base for Asia-Pac region, what with the wages we have to fork out for storemen and order pickers in this country you would think they'd set up in Indonesia or Malaysia or somewhere like that?

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If Amazon open up shop here, hope we don't get stuck with the litany of delayed release, cropped, lo-res audio, underspecced blu-ray offerings from the local bumbling idiot distributors.

Let's hope not... Although I would imagine Amazon have their own chain of supply without having to use local distributors at all. I'm not sure if they can have differing covers printed for various regions or not.

JSmith :ninja:

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It's much easier to enter new markets from a base that is culturally similar to your own - there are enough things to worry about entering a completely new market and region without throwing additional cultural and legal problems into the mix ... the reality is that the Free Trade Agreement makes this sort of thing much easier to do in Australia than most, if not all, Asian countries (that all have pretty tough ownership and trading restrictions for foreign companies.... Malaysia being one of the toughest).

Yep, fair point.

Here's hoping we get some good deals!

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bring it on.... hope it gives the likes of JB a shake up given their ridiculous prices...$48 new releases ! yeesh !

as long as amazon here doesnt rule us out buying from amazon uk or us. also hope they dont artificially peg their local amazon prices with the rip off local pricing we get on some local discs...

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They would be selling local releases correct or US ones, most importantly does it mean we cannot use USA Amazon if so that would really pi** me off.

This worries me too

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This will be a wait and see, I wouldnt expect Usa prices, they have to add freight and gst and clearance costs, but should be interesting

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highly unlikely guys given you can buy UK imports off the US site and US imports off the UK site..............

At 'adjusted' prices though, so with adjustment and GST I think .au will be > .com or .uk prices

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I too would like to think Amazon would offer cheap prices but I fear they will just jump on the high price gravy train

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I don't think so ...they are price leaders everywhere else ....but yes, they would not be looking here if it was not for the higher margins.

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I can only hope if Amazon set up here that they don't treat their staff like this article from the SMH decribes... seems like a pretty hard old place to work.

Quote from article; "Workers spoke of fainting on the job and being disciplined for getting heat exhaustion."

I would imagine half the situations described in the article wouldn't conform with our labor laws though. Still, it seems Amazon isn't the nicest employer... cheap prices are good though. ;)

JSmith :ninja:

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Does this really mean there will be an Australian online store or just the warehouses for distribution purposes?

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From what I understood from reading the article in the newspaper it is a distribution warehouse only.

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A few follow up articles on the subject;

SMH

Quote; "A LONG-DORMANT Australian spinoff of the global online retailing giant Amazon.com has sprung into life with the appointment of two senior American executives to its board and the recent employment of a dozen marketing staff."

Adelaide Now

Quote; "The reports quote a Sydney accountant who has been a director of the otherwise dormant holding company Amazon Corporate Services for the past 12 years: "There's been a change in direction," he said. "I sense it's going to be big.""

JSmith

:ninja:

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"There's been a change in direction," he said. "I sense it's going to be big.""

JSmith

:ninja:

Say good bye to your nasty 30% Aus Retail Tax greedy Aussie Distro's, Amazon will go straight to the source and kill you greedy buggers off!

(Im looking at you Audio Products Group!) :ninja:

Edited by dJOS

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The rumor is the Walmart are not to far away from announcing their plans too, and they are the experts when it comes to tight margins. (Coles Myer and David Jones will be well and truly screwed)

The Distro's here are the big problem, just look at the markup on Denon etc from APG, it's obscene and this is the case in most other product groups where the Distro is not the OEM. My wife and I bought our Baby Jogger Pram from NZ and saved over $300 by buying it online rather than from a store 5 mins away and I can think of plenty of other examples!

Edited by dJOS

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The Distro's here are the big problem, just look at the markup on Denon etc from APG, it's obscene and this is the case in most other product groups where the Distro is not the OEM. My wife and I bought our Baby Jogger Pram from NZ and saved over $300 by buying it online rather than from a store 5 mins away and I can think of plenty of other examples!

Do you have the online retailers address still (for the pram)? - going through the same fun myself :(

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I seriously doubt we will see Amazon selling region A disks here, but as BDs are all (most likely) produced by a supplier in this part of the world, Amazons huge buying power may well give them a huge competitive advantage in pricing here in Australia.

I think it may be some of Amazon's other product lines (e.g. video camcorders at around the $900 price bracket) that could upset the Australian market. Although the average Australian may be wary of mail order, if a big operator like Amazon (perceived to be reliable) sets up a non bricks and mortar outlet here in Australia, even average Australians may start to buy pricey items like camcorders, via the net.

For years in Australia we have been paying much higher prices than in the U.S. for consumer electronics goods. Whether that can really be explained away in terms of costs of providing warranties in small markets like Australia, there are doubts.

[Come to think of it, I wouldn't mind a 24fps/60fps camcorder, readily compatible with Blu-ray, rather than the traditional 25fps/50fps "PAL" version usually sold in Australia, though that's another issue altogether.]

What is perhaps more likely is that Amazon would set a price just a little below Australian prevailing prices, so as to maximise per unit profit. That's supply and demand for you: you charge what the market is willing to pay. ;-)

Edited by MLXXX

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