Amazon officially launches in Australia today

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"Small businesses and retailers across the country should be excited about Amazon launching in Australia", said Adam Mills, CTO of Koalasafe, which sells a range child-safe wireless routers.

One of Australia's leading retailers, Gerry Harvey of Harvey Norman told Sunrise that he's concerned Amazon will "break all the rules" and employ a predatory pricing strategy that means businesses such as his were financially incapable of matching their heavily discounted items.

While Amazon's launch is likely to shake up the retail environment, the fact that it has just one distribution centre for the entire country means, at first, the service will not be almost as comprehensive as the USA or United Kingdom version.

Customer orders will be fulfilled from Amazon's new fulfilment centre in Dandenong South. It's a move that could have a significant impact on local retailers.

"By concentrating on providing a great shopping experience and by constantly innovating on behalf of customers, we hope to earn the trust and the custom of Australian shoppers in the years to come".

U.S. internet giant Amazon launched in Australia today in time for Christmas, with retailers scrambling to cut costs and boost their online offerings as they brace for an expected shake-up of the sector. Still, it's a huge blow to our $16 billion retail sector.

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Amazon Australia has confirmed it will officially launch today, ending weeks of speculation over whether it would hit the go button before Christmas.

After a bunch of false starts and rumoured technical hiccups, the Amazon Australia website is finally open for business.

So despite predictions of rock-bottom prices, shoppers should still be wary of the total cost for Amazon Australia products after delivery fees are added on.

"Amazon has done well in the U.S. and United Kingdom against inefficient players, but efficient bricks-and-mortar retailers can compete if they can use their existing scale and supply chain to lower "last-mile" delivery costs and time. However, we see that the good-quality large retailers are likely to survive or even thrive in the face of Amazon".

The company has now set up a massive distribution warehouse on the outskirts of Melbourne city, on the country's east coast where four-fifths of the population live, and the company hopes to cut delivery time to as little as a day.

Over time, we will create thousands of new jobs and invest hundreds of millions of dollars in Australia.