Amazon: Good or Bad?

Chances are, you already have an account with Amazon.  And you’ve bought at least something from them.  It was either well priced, or you didn’t mind the extra because it was a way to get an item that was otherwise not accessible to you.

But with Amazon moving in next door (Australia), we are likely to see even better shipping times.   Retailers in Australia are crapping their pants.

Australia’s big supermarkets are gearing up to meet the threat of Amazon, with Woolworths planning to offer what it calls extreme convenience.

With the US online retailer expected to start operations in Australia in the next two or three months, the damage that it can do to retailers’ profit has become a very tangible threat.

In response, Woolworths has established pick-up points for online grocery orders at all of its 970 supermarkets around the country and is also testing one hour deliveries.

It believes many customers will want to order their groceries online then pick them up on the way home from work rather than having to wait around for a delivery driver.

The Woolworths app on customers’ smartphones will let the shop know when the customer is approaching so their order can be ready to go. In about 100 locations shoppers will be able to pick up their groceries via drive through.

It is one way the retailer is responding to customer demands for “extreme convenience” and is aiming to provide customers with a wider choice in how they get their groceries.

Woolworths is not underestimating the threat.

“Amazon is obviously a very material potential competitor in this space,” chief executive Brad Banducci said last month.

“Customers are looking for a lot more convenience in the way they shop. Amazon and many others are of course going to provide that convenience if we don’t.”

The thing is, you could have been providing that convenience to start with.  That makes it very much harder for a gigantic retailer like Amazon to come in and make a big splash.   The Australian market have been caught napping, and are now trying to do a quick sprint in the hope they might win.

Supermarkets killed mom-and-pop general stores.  Amazon is simply the next iteration of the market using technology and scale to give customers what they want.

I welcome our new retailing overlords.  The customer wins.

 

– Christopher Niesche, NZ Herald


Do you want:

  • Ad-free access?
  • Access to our very popular daily crossword?
  • Access to daily sudoku?
  • Access to Incite Politics magazine articles?
  • Access to podcasts?
  • Access to political polls?

Our subscribers’ financial support is the reason why we have been able to offer our latest service; Audio blogs. 

Click Here  to support us and watch the number of services grow.

As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

29%