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Online retail giant Amazon will launch in Australia with both a retail and "Marketplace" offering "really really soon".
But the company's Australian head Rocco Braeuniger stopped short of actually revealing a specific launch date, when he addressed the "Amazon Marketplace Seller Summit" in Sydney on Monday.
Analysts from Citi are expecting Amazon's "formal launch" in Australia to occur by Black Friday on November 24.
"We want to be Earth's most customer-centric company," Mr Braeuniger told a crowd of about 500 people, comprising mainly small business owners wanting to list their products on Amazon.
"We will bring thousands of jobs into Australia, we will invest millions of dollars, and we will help sellers to access millions of customers here and globally."
As part of Amazon's retail model, the e-commerce giant itself will manage all steps of the process — buying the products from suppliers, setting its own prices and managing deliveries.
In contrast, under its "Amazon Marketplace" model, third-party retailers can list their products on the company's website and set their own prices, much like eBay. These retailers would also be responsible for shipping and delivery.
"More than half of Amazon products are sold over Marketplace," Mr Braeuniger said.
The company confirmed, under this arrangement, the retailers will need to pay Amazon a monthly fee of $49.95 (plus GST), plus a commission of 6 to 15 per cent, depending on the product category.
Even though Amazon was tight-lipped on which product categories will be sold on its Marketplace platform, its choice of speakers may provide some hints.
Amazon invited a small number of small business owners, who sell children's, fashion, technology, beauty and kitchenware products, to sing praises about their experiences on the website to the crowd.
Enthusiasm — with some reservations
Some industry participants are excited about the opportunities that Amazon's Australian launch could bring to small businesses.
"Contrary to what industry observers have predicted, the majority of Australian SME [small-to-medium enterprise] retailers see Amazon as an opportunity for growth, rather than a threat," said the Australian Retailers Association's executive director Russell Zimmerman.
"With the retail industry employing over 10 per cent of Australia's current working population, it is critical that retailers get on board and step up into the international playing field.
"Although the Australian market continues to struggle with numerous economic challenges, we believe Amazon's marketplace can benefit many SME retailers, increase their sales and enhance the overall level of service in the industry.
"In fact, many believe that Amazon will help them reach more customers, and believe Amazon Marketplace will provide an additional revenue stream."
However, an executive from a high-end beverage company — who attended the Amazon summit, but did not wish to be named — was not as thrilled.
"We have some concerns that our product could be re-sold on Amazon Marketplace by just about anyone at lower prices than the premium price that we charge, which may not be great for our reputation," they said.
"Also, we don't know what Amazon's policy is in regards to food and beverage expiry dates — for example, will they allow re-sellers to list drink products that will expire in two months?"
The ABC raised those concerns with an Amazon spokesperson, who was unable to provide clarification.
Another attendee, who sells nutritional products online, was optimistic overall about how Amazon could help her business.
But after the event, she was unsure about: "Who owns the customer?"
"I currently sell my products through my website, can easily follow up with my customers about how they're enjoying my products," she said.
"That's my key point of difference — the personal touch I offer — and I don't know whether that would still be possible through Amazon Marketplace."
Topics: business-economics-and-finance, company-news, retail, internet-technology, australia
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