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09/11/17
05:22
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Originally posted by Tinwins
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I think you may be slightly wrong in thinking Amazon will have to compete with our so called 'anticompetitive' laws. how do you enforce them online ?
And think of the illegal entry and continuing presence of uber, our laws are for ignoring espescially when our polies look the other way whilst freathering their own nests....
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Originally posted by Mongrel
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Many ppl, like Stargate above, are spot on. The Australian experience for Amazon is not going to be anything like their experience in the USA. (which, btw, still have very vibrant retailers that are direct competitors with Amazon - heeeeelllooooo!).
Amazon will provide robust competition, that's about all. Our vast unpopulated area and distance between population centres means each distribution centre services far less ppl than in the USA or Europe. Our high labour, fuel, and infrastructure costs add up to a more expensive product than most Amazonians imagine. All this is true, of course for all networked retailers (MTS, Coles, WOW, etc etc), BUT they grew up on it, so its built into their distribution model and DNA.
Amazon will bleed a lot to deliver cheap to Oz for a couple of years. They'll probably do some damage, but nothing like the Armageddon that Henny Pennies predict.
In the meantime: I've been in and out of API several times. Its coming to look like its getting back in time. Maybe a drift below $1.40? Might miss it, but!
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Competition laws will allow Amazon to undercut local businesses with loss-making prices when it opens for business in Australia, expected to be later in November, the Australian competition regulator said on Saturday.
Australian Competition and Consumer Commission (ACCC) Chairman Rod Sims told Fairfax Media that Amazon.com was able under law to set prices low enough to win business without breaching competition laws.
"In terms of misuse of market power, if you open a store in a new town and you set a common price point, you are going to lose money initially if you don't have scale," he said.
"Eventually, if you get your business plan right, you will make that price point, that is in no way illegal."
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Wow...this is a real game changer. Companies like API could go under if this thing goes live which is expected to be later on this month. Guess you were right there TinTwins and I was completely wrong but again, let's see how 'low' amazon sets its prices. After doing my own research, I have found that Amazon isn't as cheap as they claim to be when you compare it to their other American counterparts. Sometimes, vendors are price gouging people and mainly people wanting a better quality of service and convenience.
https://www.arnnet.com.au/article/629574/amazon-given-green-light-undercut-aussie-businesses/