Amazon has been a titan of the e-commerce industry in the United States for two decades, and the corporation is now poised to expand its reach internationally. This month marks a major step in that process, as the company has just launched Amazon Marketplace in Australia. This move is expected to offer consumers in Australia a wide range of products at low prices, as well as bring stiff competition to the country’s existing retail giants.
According to ABC News, the company’s Australian marketplace will carry 23 different categories of consumer products, including books, computers, music, clothing, and more. Amazon Australia country manager Rocco Braeuniger told the news outlet that “millions” of products from well-known Australian brands will be available.
“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,” Braeuniger said.
Amazon’s big Australian opening comes just in time for the Christmas shopping season, which is sure to produce big short-term results for the new venture. Long-term, though, the company has higher aspirations. By building a 24,000-square-meter fulfillment center outside of Melbourne, Amazon hopes to become a mainstay in Australian commerce as well as a major Aussie employer. Braeuniger told ABC that he expects the venture to “create thousands of new jobs” as well as “invest hundreds of millions of dollars in Australia.”
As Amazon’s presence in Australia grows, rival retailers nationwide are sure to face competitive pressure. ABC speculated that the current e-commerce leaders in Australia (most notably Kogan, JB HiFi, and eBay) could soon be forced to cut prices to remain viable. Department stores such as Myer and David Jones may face the same predicament.
But what has analysts worried the most is if Amazon is successful in its global expansion, it could have a monopoly on the e-commerce market.