Like most, I have bought a thing or two through Amazon. I've bought more through Ebay or Book Depository, or Alibaba. Amazon is only sometimes the cheapest. Many times when I've bought things off a major e-retailer, I've been disappointed at the quality - though for that price, what else should I expect? So brick and mortar businesses still get my $$.
Amazon will not be the game changer some ppl predict. They'll do well in Sydney and Melbourne (which are, after all, most of Australia!) where distribution centres make economic sense. The rest of Oz? High delivery pricing will mean most retailers are safer than they think. But heres a prediction: it will still be cheaper to buy Amazon stuff from the USA than from their Australian business, long term.
Of course, the benefit of Amazon coming to Australia is the apparent increased competition. So that's a good thing. The difference between retailing in Oz and the USA is that in the USA a seller will focus on trying to undercut their competitors. In Oz, sellers focus on maximising the price they think the customer can bear. Its a national characteristic. That's why when you're looking at alternatives, they're miraculously about the same price. Amazon will (hopefully) change this behaviour, but I'm not holding my breath!
As for selling at a loss? $1/litre milk really did the Oz dairy industry a favour! All dairy co-ops losing money, allowing Canadian, NZ, and Chinese companies to swoop in and buy up. No prizes for guessing the future of $1/litre milk!
API Price at posting:
$1.51 Sentiment: None Disclosure: Not Held
