Money Minute – December 6 2017 Amazon Fizzler

Amazon Fizzler

Great to have your company.

I don’t know about you but all the hype about Amazon’s launch in Australia which seemed to be more of a fizz than bang which is a shame for the world’s third best retailer, easily the fastest growing.

But something went wrong with the launch. For a company known for being meticulous, it seemed unprepared. Its media planning, I got to tell you, was hopeless.

Sure the website didn’t crash, but Amazon’s successful web services has been here more than 10 years. If anything, it seemed unprepared for the competition local retailers brought to the table.

To see Amazon’s very own Kindle product, the tech that launched the business, sell $20 cheaper at Officeworks and JB Hi-Fi, was actually embarrassing.

If you go to that, plenty of consumers online found goods cheaper elsewhere. Sure this is the start of Amazon and it will be a big force in retail. As someone said to me yesterday, wait till the algorithms kick in – that’s when the bargains will kick in.

On this subject, this is where Amazon will change our behaviour that parallel those travel sites. You know when you try to find the cheapest airfare, say an overseas fare that’s really cheap, but if you try to find a second ticket – the price is suddenly higher.

So one example – the Sonos Play 5 speaker was yesterday for sale on Amazon for $350. Real cheap. The same speaker was this morning on Harvey Norman for $640. On JB Hi-Fi – $745.

The issue is there were only two speakers at the cheap price on amazon. Once they were gone, the price went up. So this morning, the same speakers on amazon for $700. In other words, the price was artificially cheap and doubled in a day. Its called dynamic pricing and tis now alive and kicking in Australia,

Recommended

9News: Amazon arrives in Australia .

9News: Amazon Australia Launch Just Days Away .

9News: Amazon is coming to Australia – retailers beware! .

9News: Amazon to take on Aussie pharmacies .

9News: Kaufland and Amazon set to disrupt the Australian retail market more than ever .

eBay threatens to block Australian shoppers over ‘Amazon Tax’ .

How the arrival of Amazon will shake up Australia’s retail market .

Interviewed  Roger Corbett, Woolworths, Former CEO titled ” Is Amazon a threat for Australian Business? .”

Money Minute – April 20 2017 Amazon Touches Down .

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