Will Amazon bring some welcome competition to Australian supermarkets?

Will Amazon bring some welcome competition to Australian supermarkets?

  • December 06, 2016

The recent news that Amazon is considering a move into the Australian grocery market was a bit of a surprise to the Edentify team. So what would Australians make of this, and will they give Amazon supermarkets a try? We decided to ask our online research panel, Caféstudy, so we put the question to Caféstudy’s Facebook followers to find out.

For many people, the emergence of another rival to Coles and Woolworths in Australia is welcome. Amazon brings with it a trusted brand and expertise in home delivery that sets it apart from the competition. For shoppers, Amazon means lower prices and better choice.

However, while there is a definite opportunity for Amazon, there are a number of questions and concerns that it will need to address to be successful.

Firstly, Amazon will need to convince grocery shoppers that it can provide high quality fresh fruit and vegetables. There are questions about whether Amazon’s capabilities with packaged goods can transfer to fresh food.

Secondly, having Australian made and grown products is very important to many shoppers. Currently this is not something that Amazon is known for, however a serious commitment to support Australian farmers and companies would be a major advantage.

Finally, while Australian products are essential, part of the appeal of Amazon groceries is that they could supply international products and brands that are difficult to buy in Australia. Supplying these would be a great opportunity for Amazon to provide Australian shoppers with something that no-one else can.

Clearly Australian grocery shopper are in a mood for change – and Amazon is well placed to give them what they want.