Amazon's impact not seen before for Australian shoppers
PRICES on consumers' favourite products could drop by up to 30% when American online retailer Amazon starts to make its mark.
The online warehouse launched in Australia this week and University of Southern Queensland marketing and consumer behaviour researcher Dr Rumman Hassan predicts the company has the potential to dramatically impact how people shop.
Based on a group-selling platform, Amazon collates products from thousands of participating retailers and sells them at reduced prices.
"It's probably the largest e-commerce site in the world," Dr Hassan said.
"You can literally order anything from fast moving consumer goods to video games to clothes and it will be delivered right to your door.
"The whole issue is that of convenience consumers look for value in everything and they are more price-conscious."
Dr Hassan said the company would have a similar impact on prices of fast moving consumer goods as Aldi did when it came to Australia but Amazon was much bigger and was something the Australian market has not seen before.
Already product prices have been slashed in domestic stores - the FIFA 18 video game shelf price dropped by $60 within 24 hours of Amazon launching.
"Amazon is applying pressure on the retail outlets we have in Australia, they will exert pressure from a pricing standpoint to cut down on prices," he said.
"It is anticipated prices of some products will go down by 30%. Wait and watch because prices will go down a lot more, that's what I anticipate.
"For a consumer it's great news."