Amazon’s long-anticipated entry into Australia appears to be a step closer after analysts at Citi said the ecommerce heavyweight has brokered buying agreements with its suppliers.
The online retailer could be open for business in time for the Christmas rush, placing huge pressure on other businesses looking ahead to what should be their busiest period of the entire year.
Citi analysts expect Amazon’s local Australia site to go live next month, in time for Black Friday which will play perfectly into its rumoured plan to match or undercut bottom-end prices on a huge array of goods.
Having taken off in the US market, Black Friday is growing in popularity among Australian consumers, so an Amazon sale around this time appears likely.
Profit is evidently not an immediate priority for the company, with it seeking to quickly develop a firm foothold in Australia by luring in customers with low prices and convenient delivery options.
Citi warns of a bidding war, and said in a statement: "This could spark a response from incumbent retailers who are intent on not being beaten by Amazon on price during the key pre-Christmas sales event.”
While Amazon will take time to build up its supplier and logistical network, it is expected that gift items will take priority in the run up to the festive shopping season.