Money Minute – April 20 2017

Amazon Touches Down

Ross: Thank you Sylvia, Good Morning to everyone as well.

I can tell you this is the news that will make retailers blood run cold. Amazon the global retail giant is today firmly putting its hooks into Australia. Now this here just went up onto its Australian website this morning, a simple statement that says ‘Amazon marketplace is coming soon to Australia’, it’s inviting businesses to sign up. It’s only just gone up in the last hour or so. Now beyond that is another offer to those who can sign up to start selling to millions of Australian’s, a bit like ebay if you like, but on a much grander scale and that fifty percent of all items sold on Amazon sites are sold through this marketplace that’s been launched today.

Well Fairfax Media has also obtained a statement from Amazon that says the company already has almost 1,000 employees mainly through its Amazon web services here in Australia. The next statement though is the sting in the tail. The next step it says is to bring a retail offering to Australia and we are making those plans right now. Now among those retail offers will be Amazon Fresh and this, known as Amazon Pantry, that’ll take on the big supermarkets initially in our big cities with superior and cheaper delivery services. Now this is a video from the US website already the company is seeking warehouse space here in Australia and also IT professionals to deliver these types of services. Also worried are the big electronics retailers, including JB hi-fi and Harvey Norman, that have seen falls and their share prices since the Amazon roulette has become more clear.

In the year to February, Australians have spent a total 304 billion dollars in shops, on retail, now of that online accounts of three-point-six percent around 11 billion dollars, but it’s rising fast and that’s the area that Amazon’s aiming at, with some forecast suggesting it could have twenty five percent market share within eight years and of course within eight years amount we spend and the amount we spend online, will have increased exponentially as well and that is exactly what amazon is targeting, watch the chicken fly.

Markets

The Dow Jones index last night down 118 points, the dollar under 75 us cents.

Lisa, Sylvia, Karl this morning.

Karl: They are paying all their taxes, Amazon, Ross?

Ross: Well let’s hope so because that’ll be one thing the government would be absolutely keen to make sure, but also all those businesses as well.

Source: Today Money Minute/Ross Greenwood

 

 

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