Kiwi shoppers set to benefit from Amazon

Kiwis shoppers set to benefit from Amazon's arrival in Australia. Photo/supplied

Amazon's Australian launch this year may have local retailers worried, but consumers will undoubtedly benefit.

The online giant confirmed one of the worst kept secrets in retail last week, announcing it would be launching in Australia - setting up warehouses and distribution centres across the Tasman.

Amazon has typically entered a new market with a product offering of around five million items including books, music, electronics, home and garden, clothing and jewellery, groceries and numerous other products.

Although New Zealanders can already shop from the business, the opening of offices and shipping centres in Australia will significantly cut delivery times and increase product availability for Kiwi shoppers.

Increased competition is also likely to drive down prices and put pressure on other retailers to offer discounts and unique experiences to retain customers.

Either way according to commentators, consumers are set to benefit.

Consultancy business First Retail managing director Chris Wilkinson said the company's arrival in Australasia could also give access to products previously not sold in the region.

"Amazon are likely to develop conduits to products and brands that may not have been easily available in these parts of the world."

According to Wilkinson, this was likely to be in the luxury brand space, which Amazon already offers in other countries.

"If you look at Amazon now you can see those [upper-end] brands that are available," he said.

"When the Amazon juggernaut arrives I think we're likely to see a lot of those brands become available."

Among the luxury items for sale on Amazon's US sites were shoes, handbags, clothing, and jewellery.

In the past, Amazon has sometimes refused billing addresses or credit cards from Australia or New Zealand.

Although a number of third parties have developed solutions to deal with this, having Amazon in Australasia will end these restrictions.

"Workaround solutions, such as NZ Post's MyShop had been solutions for shoppers - but only those that were most determined," he said.

"Freeing up access, availability and expediting product supply is likely to be one of the key benefits for consumers down under."

As the largest e-commerce site in the world, Amazon's purchasing power means it can also offer products at a significantly discounted price for consumers.

The Warehouse Group chief executive Nick Grayston said the company viewed Amazon as its main competitor, saying its arrival was not a surprise.

"We have been preparing for this eventuality having seen the impact Amazon has had on other local retailers in other countries," Grayston said. "We know it raises the stakes for retailers in New Zealand."

Grayston said the company had been preparing for Amazon's arrival, mapping out its capabilities and preparing for the challenge he said it posed.

Amazon boss Jeff Bezos has profited significantly from his company, yesterday adding US$3.3 billion ($4.8b) to his fortune in after-hours trading of the company's shares, Bloomberg reported.

The move saw his fortune surpass US$80b for the first time, putting Bezos less than US$5b away from becoming the world's richest person, ahead of Bill Gates.

Although Amazon has yet to announce an official opening date in Australia as well as the city it will be launching from, the retail landscape is set to change when it does.