The Meeting Place

Amazon will kill Australian businesses

amazon box

The Arrival of Amazon on Australian shores could spell the end of Australian bricks'n'mortar retail.

I was at a Roy Morgan breakfast not so long ago, when Gary Morgan informed us of Amazon's warning to Australian retails stores:

"Your profit margin is our opportunity".

Amazon is making no secret that it intends to smash Australian retail and knock it out of the marketplace.

As with all American giant businesses, Amazon will initially offer ultra low prices – it may even run at a loss – just to destroy the opposition. But you can rest assured that, once its competition is blown out of the water, those once-low prices will rise, the quality of goods will go down and we'll be at the mercy of yet another overseas mega-corporation that pays no tax on our shores (unless the Government gets its act together), exploits its employees and extorts customers.

Okay, so I could be wrong. But is it a chance I'm willing to take?

No.

I will continue to support Australian-owned small businesses when I can. When price becomes an issue (which it often does), I will buy what I can afford from local businesses and get the rest from where it's cheapest. But I'm not pulling my pants down for Amazon.

It already has far too much global market share and far too much money.

I dread the day it arrives here. But, if what happened to Starbucks in Victoria is any example, I have hope that Australian retail has some chance of surviving the incursion of this monolithic mega-retailer.

What do you think of Amazon's arrival in Australia? Will you continue to support Australian businesses? Or at least buy somne of your goodies from bricks'n'mortar stores?

Read more about the Amazon takeover at www.theage.com.au

14 comments

 

I cannot see how it can be stopped.  This is the way of the world now...so many are doing lots of things online...whether bricks and mortar shops can compete who knows.  If America is anything to go by it does not look good for department stores here.

Personally I prefer to shop in a store but if I know what I want and it is cheaper online delivered to my home;  like most customers I would buy online.  It all comes down to price for the majority of people I would suggest.  

 

For instance the other day I purchased a book just written by Dr Mosley...it cost me $13 delivered to my home;  to purchase in a bookstore around $20+

Australian profit margins are high 

too high

wages too high

of course there's an opportunity for a better run business with a great business model to offer Australians a better deal 

Strange statement from a fan of Economists Raphael.  Most of Australias Economists list the stagnation of wages as one of the causes of Australias slow finnancial recovery.  It seems the less people have in the way of disposable income, the less that goes into the economy.  

What a strange turn of events.

Profit margins too high, aren't you all for a non-restrictive free market solution, I am sure that that is what you have stated very recently.  Or was that the other mind sharer, I tend to get you mixed up, you are so alike LOL.

 

Today's technology results in risks of isolation for some - I believe this is a  dreadful trend.

Online groceries, good for folk who are housebound, new mums etc... But really, do we as a society want or need to live in isolation, groceries, household items delivered, now we have no paper boys delivering papers, especially sundy papers, it's all online."

No wonder mental health issues so common - we, as a society I believe are "lost".  

Do you miss your newspaper boys dear Cindy?

ones interactions with society is not paperboys and grocery shopping or any other shopping my dear

its with friends family and casual conversations with stranger when me going for walks on a plane , in a bus wherever 

Raphael you are not a woman, fair chance of meeting friends at the shops and going onto coffee plus only if going into shops to do the shopping do you see what the local trends are - my local shopping centre was selling tomatoes for $10.50 a kilo but while visiting elsewhere they were $6.00! Need to see different areas to see these things. 

 

Thank Christ I am not a woman 

and to be PC - thank Mohammed as well

but my point was Viv - nothing stopping you from still going to the shops.

where there is demand there will be supply 

of that I can guarantee 

Well that's true we used to have 2 Bookshops and one secondhand bookshop, we still have the secondhand one, which is always busy, the 2 bookshops are now Bottleshops always busy. Bit of a sore point with me I read  but don't drink, lot of women must drink cos they are the main ones going into the bottle shops in the daytime. Lots of cafes too which is good. 

The paper boy still delivers my paper every day.

I agree Cindy Lou

This is an American survey and think it would apply equally here.

"According to the U.S. Census Bureau, 28% of Americans over the age of 65 lived alone in 2010.  The older you become, the more likely you are to live alone.

Loneliness affects your mental and physical health and can shorten your life.  It also contributes to dementia and depression.  These are all good reasons to make sure you do not let yourself become isolated.

Many retired adults do not have adult children who can take care of them.  Some never had children; others outlived their children; still others have children who are not capable of caring for them because of distance, estrangement or other problems.  

According to a study in Canada, about one-fifth of seniors do not participate in any outside activities, even as little as one time a month.


Isolated seniors are more likely to need long-term care.

Isolated people are more likely to engage in risky behaviors such as smoking, drinking too much, eating too much and living a sedentary lifestyle.

Isolation makes seniors more vulnerable to elder abuse, including verbal, physical or financial abuse by caregivers. 

Finally, in those cases where a senior is being cared for by a family member or other caregiver, the caregiver risks becoming socially isolated, too.  This, in turn, may contribute to the elder abuse, mentioned above."


The one thing I miss by being in a semi-rural area, getting the morning paper delivered.  But then again it is a chore sorting out the real news from the dross.

CINDY LOU is right in one respect,   it can make you isolated,     i have had my computer for 8 years,    but only recently  started to get groceries online,   and i must admit,   i do miss the shops,     [i still go,    but not as much]      i get my groceries online as i dont drive,    which means  i have to rely on hubby to take me,   and get me home,    im not on a bus service,    and though i live within walking distance to the market,    it is to far to do grocery shopping and walk home,  he is unwell,   and cant always take me,   so the online is a boon,   but i dont buy clothes on line anymore,     everywhere is different sizes,    what is a 12/14 in one shop,    can be 18 in another,    which means sending things back,    [more money in postage]      so i like to cloth shop,      my lady next door but one,    never leaves home,   everything is delivered,   she never sees daylight,    and i dont think thats good for anyone,      we need to get out,   if only walking,     we need fresh air and sunlight,    AND interaction with others,    otherwise we will just vegetate,  

You supposed to come to my rescue 

being attacked by these women

at least agree with me ffs

must I pull strings with Mustaffa to get you back in line , woman !!! 

i do agree with yiou,   to some extent,    lets wait till they get here and see what they are like,         you have MAI LING to run you up a suit or daks when you need them,    were not all as lucky as you,    i hear she is VERY handy,  

Handy and lippy

i have learned to be lippy sice mustaffa came on the  scene,   he brings out the worst in me,   

Oh I meant a loving hand and lip job, 

you obviously mean it in a totally bitchy way :))

i am NEVER bitchy,    and i KNOW what you mean,    you have been around MAI LING to long,   she has taught you some nasty habits,    bet she gives you plenty hand and lip jobs,     

Ok glad we got that sorted

better stop now 

don't want Leon upset that YOU trashed his topic by posting rubbish

cant take you anywhere !!!

h ave zipped the lip,  

Poor mustuffa

Hes not getting any tonite 

 

Bring it on Amazon, waste of time going to shops when you can shop on line.

hahaha agree Zorro!

Good on you mate!

CINDY LOU,   i like you,   miss the local paper boy,  but can still get the paper delivered,   but there is only one newsagent left between SOUTH,  PORT MELB,   and MIDDLE PARK,     i miss the newsagents,,   asfor AMAZON,    they probably will make a killing at first,    but unless the goods are of decent quality,    they wont last,    i will still go to my favourite shops ,     i looked in ZARAS when they first opened,   it was rubbish,       

We can get the paper delivered too Cats by a moving car and it ends up in the bushes, 4am delivery meant everyone cancelled so at week-ends I head to the petrol station to buy one AND they sell a decent cup of coffee for a $1.00 can sit in the park and read the paper, listen to the birds while I drink my coffee, then the dog gets a walk too.

our is delivered VIVITY,   but he puts it in the letter box,     they USED to throw it,     then hubby put a pipe onto the fence so they could put it in the tube,  but the silly buggers started putting it in the letterbox,   but yes,  ours is about 4 am,     i always know when it comes a the dog barks,  

I wonder what they do in blocks of flats? Must stop the van and put them in the letter boxes.? 

i used to live in flats before i got this house vivity,   yes,   they used to put them into the letterboxes,   but they used to stick out,    so always someones paper went missing,    i have a big letterbox,   and its locked so no one can get at it,    some thieving people about, 

In flats they just dump them outside. The local newspaper in a hand delivered heap and if you subscribe then tossed from a moving car with no regard for where it might land. AND you are likely to lose it to anyone passing by if you are not quick enough to retreive it. I cancelled my delivery a few years ago for two reasons, the delivery company was not consistent and I was losing papers. I object to paying for some else's reading matter.

I have only ordered groceries once in my life from here in Perth for my sick son in Sydney.

they were very efficient I must say that. But I like to walk the supermarket and select my own

foods, vegs and fruit. 

I guess for the busy corporate woman that is trying to run a home it is a good thing.

And th busy corporate guy trying to run a home too 

Without wanting to be sexist Raphael, I have found most corporate guys have housekeepers.    Corporate women have house cleaners but usually do their own shopping.    

That is sooooo sexist 

you have no idea 

I do my own cleaning and shopping (physically)

it's one of my pleasures in life 

grant you I'm not on a multimillion dollar income and neither are most "corporate" men and women unless your at the uppermost echelons 

Oh I would not say that Raphael.  

The corporate business man works late into the night and up next morning, they hardly have any family life. then they get sent away on business trips, the same in real estate, if you don't live and breath the industry you get nowhere.  But I don't expect you to comprehend that.

To get returns there are those that just work their little butts off.

I thought husband worked long enough hours into the night.   I am just glad he did not worship the corporate bosses.

In the US Amazon only has a small percentage of retail.  Why would it be any different here?

Because retailers over here are ripping off the public

their profits are going to take a massive hit

consumer wins 

We don't receive paper mail. We both own ereaders. We shop online for everything and have it delivered. We do Skype with our family who do not live nearby. We do online banking and rarely have any cash. We chat daily with family and friends online. 

I love the technology. I am not very mobile so it is wonderful. I keep our bills down with online research and haggling. 

Will Amazon kill Australian businesses? Only if they fail to compete. I already get the online books for my kindle. I will watch to make sure they pay tax in Australia. The winners should be us by pushing prices down. It is up to us to be savvy consumers.

It took me a while to get used to my Kindle, but now I would not be without it.  We went on holiday to Europe last year and I took my entire Library with me.  Nothing like sitting on the banks of a canal on a sunny day with a cigar, a bottle of whiskey and an old favourite to read.

There are also many free E-books available on Kindle/Amazon, many of them classics.

exPS....I would like to get a Kindle as I believe they are fantastic.

Has anyone got an ipod?  I walk every day on my treadmill and usually watch a telly at the same time but I would now like to listen to podcasts and is the ipod the way to go?

I will still be shopping in the "Bricks & Mortar". I like to get clothes that actually fit and are of better quality than what you can buy online. 

I will probably trying out grocery shopping online after I have a knee replacement and after it has healed it will be back to the shops.

You can register your measurements with Tailors in Hong Kong and Singapore and get your clothes hand made for a fraction of the price you pay here for clothes that probably come from off shore anyway.

Just make sure that you upgrade your measurements as you gain or lose weight.  I believe that there are some outlets that can take laser mesurements of your body and send your measurements on to a tailor.

I have not used this service since I retired but I found it quite good.  

I do shop with Amazon already and have for some years. Mostly because they are far cheaper than shops here and I do not have to pay for delivery to the UK (which here can often be more than the cost of the gift). 

Amazon has just taken over Whole Foods in the USA so are now moving into the grocery market although the major change according to some articles I have read will be the better distribution logistics that Amazon have in place rather than any negative effect on Whole Foods.

I do not use internet shopping for my supermarket shop because I want to choose things for myself and sort the fresh fruit and veg to my liking. Nor do I buy clothes on-line. As someone else said the sizing is so varied its not worth the gamble. Having said that I have bought s few things where size was not critical.

I really don't think that Amazon would have a mahor impact on retail here as long as the retailers here stop whinging and whining about lost GST and start reducing the Australia tax making them less compatable. Seems to me half their fear is of being found out just how expensive they really are when we will no longer see that one sentence on Amazon shops: This supplier does not ship to Australia!

Well the government wanted to charge us GST on everything we bought from Amazon , now Amazon is here , I hope that makes the retailers happy.

I'll still support my usual shops but Amazon is a great step forward.

 

I can not understand how one can shop on line for clothes /shoes and the like -- I could shop on line IF I knew what I wanted -- had it b4 -- ie Perfume -- and other things that you know are always the same.

 

I would never buy food on line either as I like to know the quality AND where it was grown. 

I don't eat out anymore either as you do not know where the hell they get their food from, these days -- and I must say I really miss eating out and having a lovely meal.

At present I do not buy any fresh food on line...however I buy all dry goods in bulk on line..much easier..many times we have purchased white goods on line and have never been disappointed...

I like to go to my favourite places to purchase meat..fish..bread.. fruit etc..

I don't buy newspapers but read online and contribute to a couple of my favourite magazines...

Having said that..I think having an online option like Amazon is great for people who really are too busy to shop or are incapacitated..so I'm glad it's there...


Yes great to have Thea, but clothes are so different in sizes can take an 8 in one shop and 12 in another --

I did buy my Fridge online BUT I had checked the one my Friend had 1st

Yes I always go to my BUTCHER/and we have a wonderful seafood place here ALL local/  we did have a great greengrocer  BUT Woollies nad Coles saw that they went out of business along without wonderful Deli -- but I still never ever by any Deli products from the big two

14 comments



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