First off, Amazon are going to go after general merc and...

First off, Amazon are going to go after general merc and electronics as a priority. I don't think supplements fall under this category.

Secondly, if Amazon pursue a supplements business it will likely contain the very same brands that are already on shelves in Australia. In other words, they will buy from BKL and re-sell via their network.

Thirdly, and probably most importantly, there are already discount supplement alternatives to the major brands on shelves right now. This has been the case for some time. You can buy the same 'hair skin and nails' formulations for a quarter of the price to big brand versions, for example.

Can Amazon really be that disruptive to the supplement industry given the low cost alternatives and heavy discounting already present in the industry? I think not.

On a broader note take a look at Amazon's impact and market share in Canada. A country not to disimilar in population, demographics and tyranny of distance as Australia. Two percent retail market share ShortingHero, yes two percent mate.

I don't think there is a credible threat to BKL from Amazon. Though, who knows maybe Amazon will pay off Nicole Kidman to endorse a whole new line of supplements outside of their core business. Because that makes sense, right?

Snap.