The arrival of Amazon’s marketplace service in Australia is now all but assured. Now the question is, which retailers are likely to come under the most pressure in dealing with Amazon's disruptive force?
Amazon is preparing a new fulfillment center located outside of Melbourne and analysts expect the company to roll out its marketplace sometime this month. (Amazon already sells physical and digital books, Kindle ereaders and Fire tablets in Australia, and made its Prime Video streaming service available there last year.)
Amazon’s impending launch has generated nervousness among Australia’s retailers, who will soon have to deal with the ecommerce giant’s mastery of logistics, consumer targeting and deep price cuts to remain relevant.
But which retail sectors in particular might be most affected? New research from Sensis indicates some categories that may be more vulnerable, and some that may be insulated.
Sensis surveyed digital buyers in Australia in June, and found that travel purchases factor heavily into their online behavior. In fact, 57% of respondents said they bought airline tickets online, while 47% made hotel reservations—both areas where Amazon has yet to tread.
In addition, 47% said they had made takeout food purchases online, a service Amazon has slowly been rolling out to users of its Amazon Prime subscription service in select US cities over the past few years through the Amazon Restaurants brand.