AUSSIE COMPANY SHARES SURGE ON AMAZON DEAL
5 December 2017, Written by David Simmons
AFTER nearly a year of anticipation, online marketplace giant Amazon has finally launched in Australia.
While consumers are excited to start purchasing through the platform, the threat of Amazon has been a common source of anxiety for many Australian retailers, both small and large, throughout 2017.
However some business people including former AFL player Joel Macdonald, co-founder of listed company GetSwift (ASX: GSW), are jumping at the opportunity to capitalise on Amazon's offering.
Yesterday, the delivery management software company saw its share price soar after it updated the market on its global master services deal with Amazon.
GetSwift's shares jumped 70 cents, or 19.4 per cent, to $4.30 on Monday after having soared 84 per cent to $3.60 on Friday morning on news it had struck deals with two major US retailers Amazon and fast food group Yum!.
The company's update says GetSwift signed a global master services agreement with Amazon and also struck a global multi-year partnership with Yum!, which operates Taco Bell, KFC, and Pizza Hut.
The partnership is estimated to result in more than 250 million deliveries a year from GetSwift's logistics platform.
Echoing the success of GetSwift is Ryan Murtagh, founder of e-commerce management platform Neto, who says the arrival of Amazon isn't a cause for fear.
"Small retailers have a really good opportunity to leapfrog the bigger guys and get a first real advantage on Amazon," says Murtagh.
Murtagh says retailers should do their research if they want to dominate on Amazon.
"Research opportunities and gaps in the marketplace when it does launch, so try to populate those gaps with your inventory and source of inventory that populates those gaps," says Murtagh.
The Amazon.com.au domain has long been home to a storefront for the brand's Kindle bookshop, but as of today the site is home to "millions" of different products for sale.
At a glance, the site is selling clothing, electronics, toys, beauty products, sports gear, tools, kitchen wear, video games, and office supplies.
Although Amazon.com.au is now up and running, those hanging out for Amazon Prime will remain disappointed for the time being. However the company has confirmed Prime is eventually "coming to Australia".
The group has not given a solid date for Prime Shipping yet, but considering the investment in infrastructure needed to deliver a service like Prime Shipping it could be months until users have access to the service.
Right now, shipping should take three to seven days to reach capital cities and between seven and 10 days in remote areas.
The group's pre-Christmas launch has been forecast by analysts to capture as much as $200 million in sales and quickly grow to billions as more shoppers sign up.
Before Christmas, the retailer is offering up to 30 per cent off selected toy brands like Barbie and Hot Wheels.
In fashion, the group is offering 30 per cent off Calvin Klein underwear and Tommy Hilfiger polos.
Business News Australia
Author: David Simmons