Amazon Launch Just in Time for Christmas

During the Christmas holidays I love spending time with family. Talking over lunch about the year past and the year ahead. Receiving gifts isn’t bad either.

But the part I dread is actually getting the gifts for others. It’s not that I don’t want to show my appreciation. It’s the time and energy spent in a shopping mall, surrounded by deal-hungry shoppers.

I’d rather just shop online and be done with it.

Lucky for people like me, Amazon looks to be arriving just in time.

Amazon Launch is Almost Here

As reported by the Australian Financial Review, Amazon is looking to open in Australia this week:

The US online giant could be trading within 48 hours with the Amazon Marketplace team sending an email to sellers on Tuesday afternoon saying they will begin a testing phase on Thursday, signing off with: “Let’s make history!”

Products from the AmazonBasics white-label range as well as HP computer products have also appeared briefly before the pages were hidden again. All those item pages have now also been removed from public view.

The company’s fulfilment centre in Dandenong South in outer Melbourne has been preparing with staff on since last month.

Amazon’s Impact on Aussie Retail

Investors will also get the opportunity to see the impact of Amazon on Australian retail. No doubt you’ve heard the predictions of Amazon destroying our retail industry. They’ll force brick-and-mortar retailers out of business. And cause havoc for shopping mall owners, who are losing customers by the dozen.

Of course, I disagree with the predictions. While Aussies are increasing their online shopping habits, a large majority still prefer an in-store experience.

Christmas trading will be the perfect test for Amazon to prove its might. Yet as I said, I don’t believe the results will be the least bit surprising.

Cheers,

Härje Ronngard,

Junior Analyst, Markets & Money

PS: Amazon’s arrival and its effects on retail may be bad for commercial real estate. But Aussie property prices continue to defy gravity. Those who have tried to predict the top have been wrong thus far. And that’s because property prices still have a long runway of growth ahead.

If you want to read more about long-term booming property, check out our Markets & Money report, ‘Why Australian Property Is on the Verge of a Decade Long Boom’.


Harje Ronngard is a Junior Analyst at Markets and Money. With an academic background in finance and investments, Harje knows how simple, yet difficult investing can be. He has worked with a range of assets classes, from futures to equities. But he’s found his niche in equity valuation. It’s not good enough to be right on average when it comes to investing. The market is volatile and it only takes one bad day to ruin your portfolio. You don’t want to end up like the six foot man that drowned in the river that was five foot deep on average. It’s why Harje is constantly reminding investors of their downside risk here at Markets and Money. He does so by simply asking just two questions.  What is it worth? And how much does it cost? These two questions alone open up a world of investment opportunities which Harje shares with Markets and Money readers. Right now Harje is focused on managing research and investments over at the Legacy Portfolio. An investment publication designed to significantly grow investor’s wealth over time with deeply undervalued businesses. Harje also contributes his insights in Total Income, headed by income specialist Matt Hibbard. Harje loves cash-rich businesses, so he feels right at home amongst Matt’s high yielding income plays.


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