Amazon's Australian arrival has been anticipated for a long time, but it's imminent according to reports.
A couple of weeks ago Amazon's Australia manager Rocco Braeuniger told a conference of 500 potential Amazon customers that "We are getting really, really, really close".
It was thought that the weekend that just went by was going to be the launch date, but it didn't happen.
When Amazon does eventually set up shop it will be fascinating to see what happens to the Australian retail market. Our retailers are in for a tough fight if America and Europe are anything to go by. Sears, Macy's and Toys R Us have not had a good time over the last few years.
It's starting with a 24,000 square metre distribution centre in Melbourne and I'm sure there are plans to expand in New South Wales and Queensland over time.
So what can Aussie retailers do?
Woolworths Limited (ASX: WOW) has said it will ramp up its defence strategy by growing its number of 'dark stores'. These are supermarkets where no customers are allowed, they are purely set up for online orders.
Bapcor Ltd (ASX: BAP) has an excellent service standard of delivering within two hours to mechanics that needs spare parts from its Burson centres.
Greencross Limited (ASX: GXL) is growing its online sales impressively and is also growing is private label products.
I think the best chance Aussie retailers have is selling unique products that simply can't be replicated by a cheaper online sales model. Harvey Norman Holdings Limited (ASX: HVN) and JB Hi-Fi Limited (ASX: JBH) don't sell a lot of unique products.
Retail-related businesses that make their own products like Greencross and BWX Limited (ASX: BWX) have the best chance of succeeding in the future. BWX could even end up selling its products on Amazon.
The only other option is to offer a quality and personalised service in-store, which can't be matched by an online-only store.
Foolish takeaway
I'm fascinated by what's going to happen over the next few years and what effect Amazon will have. The Australian retail industry already looks as though it's heading for a tough Christmas even before Amazon has started. I'd be very wary of investing in most retail shares at the moment.
