The Amazon invasion begins? (24 Nov, 2017)

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The Amazon invasion begins? (24 Nov, 2017)

Postby aardvark_admin » Fri Nov 24, 2017 8:25 am

This column is archived at: http://aardvark.co.nz/daily/2017/1124.shtml

Will Amazon.com kick off in Australia today as rumoured?

When it does open its Australian (virtual) doors, will NZers be invited to shop there?

What will this mean to local retailers who are already grasping at straws by claiming that a lack of GST on personal imports is killing them?

And although most retailers have huge mark-ups, are they really making big margins -- once you factor in the outrageously over-valued property prices and resulting lease/rent charges that they're forced to pass on?
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby hagfish » Fri Nov 24, 2017 9:51 am

I think our definition of 'local' has had to change over the years.

There was lots of hue and cry as the 'big-box' shops and chain stores supplanted 'local' businesses. Direct exposure to international competition is just the next stage.

Lots of towns that used to have a cluster of specialty stores, a bookshop, a hairdresser, a couple of picture theatres - maybe even a department store - are now reduced to a big Farmlands, a Red Shed and few homogenous chain stores. So it goes.
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby par_annoyed » Fri Nov 24, 2017 10:04 am

It's not even international, we discovered that Kathmandu prices for shoes and some other items are actually cheaper on their own NZ web site (incl. delivery) than the nearby shop. This doesn't make sense (unless it's a sneaky way to shut it down).

Amazon continues to prove that a network of bricks and mortar outlets are no longer viable. One giant warehouse, probably with delivery deals with local couriers, is the future. Even supermarkets are doing it. I happily order electronics and non-perishables (although clothes etc. can be a lottery as typical sizes XL, XXL, XXXL vary wildly), but wouldn't order fresh food as you have no idea of what standard you get...

Once the drone deliveries start to ramp up, even the concept of the regular shopping trip will start to fade away.....

"Google, order me some more potatoes" Oh, of course, that's here already isn't it ?
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby aardvark_admin » Fri Nov 24, 2017 10:09 am

Interestingly enough, I read a comment online the other day from a satisfied Amazon customer who reveled in the fact that they could order something online using their phone or PC and know that it would be delivered to their door the very next morning -- and at an extremely competitive price. That's what will kill the bricks and mortar retailers.

Even Amazon's move into the supermarket business seems to be going well for them and I'm sure that (unlike some of the local supermarkets) they'll appreciate that *all* their customers are online buyers so won't be tempted to get rid of the bruised and aged stock by fobbing it off on those who order via the internet.
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby par_annoyed » Fri Nov 24, 2017 10:21 am

aardvark_admin wrote:<snip> ... they'll appreciate that *all* their customers are online buyers so won't be tempted to get rid of the bruised and aged stock by fobbing it off on those who order via the internet.


Yeah, good point. I can see that the local/NZ supermarkets would be in for a serious battle if 'Amazon Food' ever launched over this side of the planet. Especially if Amazon deliver good quality stuff.

Wow, just Imagine how dead the town centres would be then - some of the smaller ones are already decrepit and look shabby with closed shops, etc.... they truly would be like a ghost town....

and everyone sat at home with their little Google machine watching their every move, getting more and more obese, ordering whatever they want .....

Hmmmm......not good.
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby paulw » Fri Nov 24, 2017 12:47 pm

I don't think that the NZ property market has a great deal to do with NZ pricing , more likely the council "Property Taxes / rates" has more to do with and greed . It also depends where they source their products from. I know that the company that I work for has to buy it from the Ozzy supplier even though we could buy it way cheaper from Thailand, Japan and the US but the our supplier and their parent won't allow us. I remember a few years ago our FOB price in NZ$ in Ozz was the same as the retail price in the US..

Just had a look on the Amazon AU site but just has books and the like . Nothing worth looking at .
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby patrick » Fri Nov 24, 2017 9:29 pm

Amazon's Grocery offering "Amazon Fresh" is poor value in the UK, so don't expect anything from that.

I was shocked at the rip off prices when I went supermarket shopping in NZ in January. NZ really needs the German discount supermarkets Lidl and Aldi to set up shop. They'll be the only thing that breaks the duopoly of NZ supermarkets. They've made a huge difference to prices in the UK and are starting to have an impact in Oz too.
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby Perry » Sat Nov 25, 2017 8:49 am

One of the biggest mis-perceptions - error, even - is the notion that NZ is involved in Free Trade.

It isn't.

What we have is highly selective tariff-free trade in some goods and services.

Real dinkim free trade cannot work between countries with hugely disparate standards of living.

All the half-hearted thing we have now is doing is exporting the jobs of NZrs to cheap labour economies.

And there is a price to pay for that. At some point, that price will become too big to be allowed to continue.

The mention of quasi-ghost towns (par_annoyed) shows that commercial LLs are subject to market forces, just like any other business.

I.e. Greed has it own rewards.
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby Screw » Sat Nov 25, 2017 10:34 am

The ultimate end with "Free Market" economies is threefold:

Monopoly
Duopoly
Cartel.

More often a mixture of all three.
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Re: The Amazon invasion begins? (24 Nov, 2017)

Postby Perry » Sat Nov 25, 2017 12:09 pm

Screw wrote:The ultimate end with "Free Market" economies is threefold:
Monopoly
Duopoly
Cartel.
More often a mixture of all three.

Right!

And the only reason that happens is that the free market aint a free market at all.

Rather, the so-called free market is a device that the clever use to buy cheap and sell dear.
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