Amazon incoming ...

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Old Dec 5th 2017, 7:20 pm
  #61  
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Default Re: Amazon incoming ...

Originally Posted by ozzieeagle View Post
I'm wondering if places like Officeworks, Bunnings, Harvey Norman, Chemist Warehouse and in your case Toys R Us will price match Amazon online.

I reckon Officeworks, Bunnings, and ChemistWarehouse will give it a go. Anaconda may as well.

eg: Out shopping in one of the above stores, see something you may purchase, straight onto the Amazon website to see if they have a price for it and take it up with the retailer if they don't price match they are gone!

Can confirm Officeworks are already doing it, according to the people on Whirlpool.

Price matching is an ingrained part of the Aussie retail landscape, not so sure they do it as readily overseas?
I have done this with Bing Lee a lot lately on lots of expensive electronics and whitegoods. No problem. They will beat any online retailer to get your business.
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Old Dec 5th 2017, 8:04 pm
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Default Re: Amazon incoming ...

Originally Posted by ozzieeagle View Post
I'm wondering if places like Officeworks, Bunnings, Harvey Norman, Chemist Warehouse and in your case Toys R Us will price match Amazon online.
There is also the issue of range.

In general the range of goods carried in a shop is significantly lower than that by someone like Amazon. So, for instance, if wanted to buy a Yamaha AV amp, I'll find one model in their range in shops like HN or the Good Guys. And it'll be overpriced. If you have a working Amazon offering, you'll have all of the range, and there will be real competition pushing the price down.

What I particularly noticed was that 'christmas lists' ended up being defined in terms of Amazon links - since for anything you wanted, you could find it there, and if the price weren't always the lowest it would at least be within touching distance. Amazon took over from Argos as the core starting point.

My guess is that eventually the same will happen here. 'Bricks and Mortar' stores won't be the core starting point, they are local fulfillment, for a subset of the range. If I were them, that's what I'd be concentrating on.
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Old Dec 6th 2017, 12:40 am
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Default Re: Amazon incoming ...

Originally Posted by GarryP View Post
My guess is that eventually the same will happen here. 'Bricks and Mortar' stores won't be the core starting point, they are local fulfillment, for a subset of the range. If I were them, that's what I'd be concentrating on.
The core starting point is a google search.
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Old Dec 6th 2017, 1:14 am
  #64  
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the wider the range the higher the holding cost.

Alot of rationalisation taking place in grocery. Why 200 varieties of salt?

Plain simple packaging with easier read details online.
- reduced cost of packaging
- increased recycling ability

Convenience in time (certainity) is what customers are seeking. Price expectations is lower. But other factors such as sourcing transparency and treatment of staff.
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Old Dec 6th 2017, 6:46 am
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Default Re: Amazon incoming ...

Originally Posted by Stuck in Auckland View Post
Convenience in time (certainity) is what customers are seeking. Price expectations is lower.
Yes and yes. There it is.
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Old Dec 6th 2017, 8:28 am
  #66  
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Default Re: Amazon incoming ...

Originally Posted by Stuck in Auckland View Post
the wider the range the higher the holding cost.

Alot of rationalisation taking place in grocery. Why 200 varieties of salt?

Plain simple packaging with easier read details online.
- reduced cost of packaging
- increased recycling ability

Convenience in time (certainity) is what customers are seeking. Price expectations is lower. But other factors such as sourcing transparency and treatment of staff.
You are half right.

If you are a bricks and mortar store, the more the range, the more the issue with costs and how long it stays on the shelf.

However, companies want to differentiate their offerings (lots of price points) and want to offer lots of SKU so they can push other competing offerings off the shelf. They might say that the store gets a discount if it offers the complete range, etc.

Upshot is, it's never as simple as "why 200 varieties of salt?

However, aussie stores do have a bad reputation for carrying only a small fraction of the total possible range, and it's not because the stores are small. It's more to do with their terrible grasp of logistics and understanding what the customer wants.

I've no doubt, once Jeff has shot the individual responsible for screwing up the Amazon launch, they will eventually get the usual Amazon product range up and running - and that will cut the legs from underneath complacent aussie retail.
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Old Dec 6th 2017, 8:38 am
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Garry, you are overlooking the fact that Australian retailers are "world class".

As they are in all walks of life.

Well, that's what they tell themselves.
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Old Dec 6th 2017, 10:12 am
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Default Re: Amazon incoming ...

Originally Posted by GarryP View Post
I've no doubt, once Jeff has shot the individual responsible for screwing up the Amazon launch, they will eventually get the usual Amazon product range up and running - and that will cut the legs from underneath complacent aussie retail.
Ever heard of a soft launch?Testing the systems, no stock at present, ensuring they won't be inundated.

According to Amazon it was record breaking launch. No figures given but the marketing line should keep the momentum going, despite the very lacking inventory.
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Old Dec 6th 2017, 10:19 am
  #69  
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Default Re: Amazon incoming ...

Originally Posted by Bix View Post
Garry, you are overlooking the fact that Australian retailers are "world class".
Are any of the aussie retailers actually world class? I really can't think of a one that I'd say was up there with the best, in any domain.

Problem is, they are too insular, and too lacking in competition. The country is only really big enough for one player in each segment, so whom ever gets to scale first, wins. Other countries, particularly those with larger populations and smaller distances, can sustain two or three competing chains in each segment, developing and honing offerings - or at least they could till online providers came in an beat up their business models.

So who is going to keep Amazon on their toes?

There are certainly fault lines in the Amazon offering, and there's the likes of AliExpress, but who's there ready and waiting to clean up with Amazon screws up like they did this week?

I can kind of see the characteristics of the next big thing, but for the moment it's still fuzzy.
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Old Dec 6th 2017, 10:55 am
  #70  
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Default Re: Amazon incoming ...

No parcels turned up from Amazon Aus Yesterday in Melbourne's inner North.


So if it was record-breaking, we should be expecting a very busy night.

Looks like I should be heading off to work in 10 mins or so in trepidation. I'll warn my colleagues.


In fact I should know within the hour.


Yehp coming with the express mail circa 4AM

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Old Dec 6th 2017, 11:39 am
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Default Re: Amazon incoming ...

Originally Posted by Bix View Post
Garry, you are overlooking the fact that Australian retailers are "world class".

As they are in all walks of life.

Well, that's what they tell themselves.
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Old Dec 6th 2017, 5:50 pm
  #72  
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Default Re: Amazon incoming ...

Originally Posted by GarryP View Post
Are any of the aussie retailers actually world class? I really can't think of a one that I'd say was up there with the best, in any domain.
Whadddabout Dan Murphy's???
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Old Dec 6th 2017, 6:19 pm
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Default Re: Amazon incoming ...

Originally Posted by astera View Post
Whadddabout Dan Murphy's???
As Garry was saying
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Old Dec 6th 2017, 6:44 pm
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https://www.bentleys.com.au/knowledg...zon-australia/


May be of interest ?

Amazon will always be as weak as its supply chain partners.

When investors see it will not be dominate in all FMCG their commitment will drop. Then the big issue for them will be funding the churn.

Here rises the biggest opportunity to provide better convenience and real time experience and customer service.

You don't get exceptional outcomes from mediocre inputs (staff to customer experience).
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Old Dec 6th 2017, 9:46 pm
  #75  
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Default Re: Amazon incoming ...

Originally Posted by Stuck in Auckland View Post
Not the best understanding of the market. For instance, much of the reason Amazon tries not to make a profit is it will be taxed. Better to keep feeding the money to growing the business, or adjacent businesses. If you want to go out and spend $13.7bn on a grocery chain, you can get a loan to cover it, and set the payments against tax.

A lot of it seems to be wishful thinking, not borne out by the evidence in other countries. Realistically the story is told by a graph



Originally Posted by Stuck in Auckland View Post
Amazon will always be as weak as its supply chain partners.
I do wonder. At some point that might not be true - they have certainly not be backward in putting their name on devices.

Originally Posted by Stuck in Auckland View Post
Here rises the biggest opportunity to provide better convenience and real time experience and customer service.

You don't get exceptional outcomes from mediocre inputs (staff to customer experience).
Part of my wandering previous post is thinking on what replaces Amazon. And that line of thought was started by realising Amazon is a web company, and web is yesterday's news.
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