Photo by Michael Nagle/Bloomberg
booodl CEO & Co-Founder George Freney speaks with Bloomberg about the challenges facing Amazon as they expand into Australia, why Australia is important and the impact Amazon will have on Australian consumers.
Click here to read Bloomberg’s ‘Amazon Takes On Remote Outpost in the Land of Bricks and Mortar’ by Angus Whitley and Spencer Soper.
Key takeaways for the time-poor
- Expanding to Australia will be hard and will undermine Amazon’s high-volume, low-margin model:
- Major population pockets can be 4,000 kilometres (2,500 miles) apart, driving up the cost of fast deliveries
- Wages are higher than in most major developed nations
- The quantity of red tape means it’s easier to do business in Macedonia, according to rankings by the World Bank
- Internet sales as a % of total retail was less than 8% in 2016
- However, ‘Australia is a key piece of Amazon’s long-term goal of creating a global distribution network that connects buyers and sellers from many countries. That warrants big initial investments without near-term returns’
- Locking down Australia means that Amazon will have key shipping hubs and inventory supplies from which it can serve Southeast Asia
- Amazon will fundamentally change the way people shop in Australia
If you are in the Shopping Centre or Retail business and want to learn how to thrive when Amazon arrives in Australia then give 15 minutes of your time to George’s in-depth analysis on Amazon’s Australian endeavours here.