New Zealand retailers will see competition from Amazon increase, consultants predict
Amazon says it will be able to provide faster delivery on more goods.
New Zealand retailers will have to raise their level now that Amazon has opened its Australian online store to Kiwi shoppers, according to a retail consultant.
Sell Global director Hamish Conway said development would be a slow process that would take a few years to take full effect.
Amazon said the change meant New Zealanders could buy “millions” of products from amazon.com.au, in addition to the company’s main US site, and have them delivered faster and more cheaply. .
Customers can expect three business day delivery to parts of Auckland and Christchurch for “as low as A $ 6.99 (NZ $ 7.52)” and standard delivery from 2.99 $ AU, he said in a statement.
* Amazon is expected to open its Australian website to Kiwis next month
* Amazon, Apple and Google sell tens of millions of smart speakers, but the Kiwis are running low
* Amazon launches in Australia today
Conway said another consequence was that New Zealand companies could sell their products in the country through Amazon’s Australian storefront while maintaining inventory in New Zealand.
Sell Global helps businesses get set up to sell products through Amazon.
The range of products Amazon offers and its prices differ between Amazon’s online stores in Australia and the United States.
But Conway said the Australian store now carries many products from Amazon’s U.S. catalog.
“People will start buying from Amazon because it’s the ‘store for everything’,” he said.
“But Amazon is going to have to ‘keep the promise’ in terms of experience and delivery.”
The development was “another reminder” for New Zealand retailers and brands to improve their game and ensure the quality of their customer experience, said Conway.
“They need to make sure they’re on point with their customer experience to make sure they’re not vulnerable to customers who turn to Amazon.”
Retail NZ chief executive Greg Harford said Amazon’s move came as no surprise and would put additional pressure on local retailers.
But he didn’t believe the impact would be “that huge in the short term.”
“People here are shopping on Amazon everywhere and that just opens up another Amazon channel,” he said.
“Retailers have worked hard enough to stay ahead of the curve over the past few years.
“The question is going to be how fast New Zealanders are moving to buy on what is still an Australian website.”
There was speculation that Amazon could fully open its Australian site to New Zealanders in 2019, but that did not happen at that time.
Neither, for now, has suggested that Amazon could use distribution from Australia as a way to launch a version of its Amazon Prime shipping service in New Zealand.
In many markets, Amazon Prime offers “free” shipping and access to Amazon Prime Video and Prime Music services for a single monthly subscription.
The bundle has been key to the online giant’s recent growth in retail.
Amazon said Amazon Prime will not be available in New Zealand, but customers can subscribe to Prime Video for $ 8 per month.
Conway predicted that Amazon would start further promoting its digital services and virtual assistant Alexa in New Zealand.
“It will start to connect people to the ecosystem.
“It will take a few years for users to adopt Alexa, but they will, and then it will start to become very visible in the New Zealand landscape,” he said.
Amazon opened its first Australian fulfillment center in Melbourne in 2017 and now has a total of six completed or planned across the country.
There have been persistent rumors that he is set to set up distribution centers in New Zealand as well, but that has not happened.
In 2017, broker Forsyth Barr caused a stir by suggesting that Amazon could grab a $ 915 million annual share of New Zealand’s retail market by 2022 by buying the rights to broadcast the All’s games. Blacks and bundling them with Amazon Prime.
An Amazon spokeswoman said she had not commented on her future plans.