Amazon is opening a Melbourne store. They will be hiring 140 workers in 20 different jobs. A general manager by the name of Chris Samartzis is skeptical of the store saying Australia’s retail isn’t a good fit with Amazon. The author is critical of this review saying Amazon is already in Australia and is just expanding their reach. Amazon is also already in countries outside to US so they are used to dealing with other countries and their different laws. Australian retailers are losing money to Amazon already and Amazon share holders are happy with small returns until it is really established. Amazon has a good marketing team, fast delivery and informative ecommerce.
- Amazon’s push into countries other than the U.S. means that as it expands into the brick and mortar sector of Australia’s market, it arrives already experience-laden.
- VANA General Manager, Chris Samartzis,has expressed concern that the business conditions of Australia are not specifically conducive to the pure ‘play model’ of the mogul company.
- Amazon’s competitive threat arises in part due to its fast and affordable delivery system and its VIP club and marketing system.
“Australian investors are clearly worried. Australian retailers on the sharemarket have lost about $200 billion in the ASX recently due to Amazon. Now I will try to explain what is happening on the share market and why Amazon is such a threat.”