The electronic commerce platform is now operating in Australia, even though the country does not rank high on Amazon's list of priorities. The company launched in India and Singapore first, suggesting that Australia could be a harder fit for Amazon's business model. While Australian customers could buy products previously through the US. Now, they can buy products in Australian-based warehouses, which will reduce delivery time and costs.
Why it's important
It's not surprising that Australia was low on the Amazon list for new countries to enter "What Amazon is looking for is population density," says Reed Stevenson, technology editor at Bloomberg Asia. A high population density allows the company to deliver goods at a lower average cost. Australia, being a huge country with a population of only 24.5 million people, can be a problematic environment for the company.
While online purchases represent between 8% and 13% of total retail sales in the country, it is projected to increase to A $ 31.4bn by the year 2022, more than a 50% increase in A $ 20bn.
Nothing in AmazonAustralia is cheaper than we are used to. NOTHING.
– Josh Byrnes (@_yngbld) December 4, 2017
However, the responses on Twitter to Amazon Australia have been negative.