Amazon lands in Australia and concerned local retailers

A few weeks of Christmas, the American giant Amazon digital landed on Tuesday (5) in Australia, the retail trade, which struggle to reduce their costs and increase their online offerings.
The arrival of the giant-former bookseller, currently one of the largest companies in the world – the country-continent threatens the apathetic local market, due to the prudence of consumers and the sparse growth of wages
Amazon offers consumers "millions" of Australian popular brand products. Some small and medium-sized national companies are already on Amazon Marketplace, which allows other vendors sell on the website of the American company.
The digital trade represents only between 8% and 13% of total sales in Australia. This shows a potential growth estimated at about 300 billion Australian dollars annually (226 billion dollars).
"We believe that the arrival of the Amazon to Australia will surely be a success," declared UBS analysts.
The country "is an attractive market, where the online sale is under-represented," he added.
According to analyst Kim Do, IBISWorld, the American giant is able to absorb his loss and increase your market share at the expense of its local competitors.
Several Australian companies already elite succumbed to foreign giants offensive as the Japanese Uniqlo, or French Sephora, while others had to reduce your network of physical stores.
-Broadband-
After all, the Australian retail sales Association celebrated the news through your General Director Russell Zimmerman, who points out that Amazon offers a new platform for selling their products.
"With more than 300 active users present in the Marketplace, most Australian retailers see an additional channel for selling their products", he says.
But not everything will be easy for Amazon, warn some analysts, that indicate the difficulties of broadband access in the country and the size of Australia.
"One of the facts that explain that Australia is lagging behind the other countries (in the development of the digital trade) is the difficulty of access to broadband," according to the BMI Research Office.
About of 57.3% of the Australian population is broadband subscriber, reaching 60% in 2021-while in Singapore will be 75.3% rate, according to BMI.
"The biggest delivery times due to the size of the country and, therefore, the higher costs of shipping are not an omen for a company of ' e-commerce '," he adds.
-Diversification-
Arisen in Seattle in 1995, Amazon not to diversify. The company is present in various categories of digital sales, but also in the sectors of natural supermarket, digital speakers, streaming movies, or in the cloud.
She is one of the most profitable companies on the planet, alongside other American technology giants like Apple, Facebook and the Alphabet, array of Google, with a profit of 256 million dollars in the third quarter of this year.