The long anticipated official launch of Amazon Australia is finally here. The e-commerce giant officially launched today with Amazon Australia's country manager, Rocco Braeuniger, stating that Amazon would be offering "millions" of products from well-known Australian and global brands.
What you need to know
- Amazon will be offering discounts of up to 30 per cent on big-brand toys and clothing, potentially in time for your Christmas shopping.
- Consumers in most capital cities around Australia will be able to experience one day deliveries
- Amazon will be offering free shipping nationwide for purchase over $49.
- Under the free delivery offer, Amazon estimates delivery times as short as three business days in the cities of Sydney, Melbourne, Brisbane, Adelaide and Canberra.
- Top broker Citigroup believes Amazon could generate $200 million in sales before Christmas, which would dramatically affect established retailers.
ASX stocks likely to be affected
Even prior to the launch of Amazon, Australian retailers have been experiencing a challenging trading environment. The launch of Amazon will likely have an immediate impact on sales for retailers such as JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN), and Myer Holdings Ltd (ASX: MYR) who are particularly vulnerable at the moment.
Solomon Lew's Premier Investments Limited (ASX: PMV) might be able to withstand some of the early pressure due to the strong brand power of some of its main brands Smiggle and Peter Alexander. The jury is still out on Super Retail Group Ltd (ASX: SUL) which owns the Super Cheap Auto and Rebel Sport brands. Trading at 11x trailing earnings, the Amazon effect might have already been priced in.
Supermarkets get a temporary reprieve
Amazon Australia is yet to launch its 'Amazon Fresh' brand which focuses on the fresh food and beverages categories. This will come as good news to Woolworths Limited (ASX: WOW) and Wesfarmers Ltd (ASX: WES) which owns Coles.
If you are wondering which shares will not be affected by Amazon, then click below to find out more about the stock to buy in the age of Amazon.
