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Is Amazon Prime service can change the Australian retail industry?

Amazon

Last month, e-commerce company Amazon launched Prime service in Australia. Some of the experts expect that Amazon Prime may make a new trend because of delivery innovation and cost reduction.


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By Sung Hoon Baik, Justin Sungil Park

Source: SBS




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Last month, e-commerce company Amazon launched Prime service in Australia. Some of the experts expect that Amazon Prime may make a new trend because of delivery innovation and cost reduction.


Last month, e-commerce company Amazon launched Prime service in Australia. Some of the experts expect that Amazon Prime may make a new trend because of delivery innovation and cost reduction.

Amazon Prime is one of the services in Amazon, which is subscribe the membership in monthly or yearly basis with some services, such as;

  • Free return
  • 2-day delivery in domestic
  • Special price for Prime users
  • Free delivery when users buy more than $49 in Amazon America
  • Digital movie and video contents
  • Voice shopping using Alexa

Also, Morgan stenley release new report, “7 reasons Amazon Prime is a serious threat to Australia's retail industry” on this month.

One of the key points of this report was, because of the Amazon, other delivery companies have to offer more competitive price to the customers. And also, Amazon’s own innovative warehouse system, user of the Amazon may have items with cheaper price compare with other retailers.


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