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Amazon for Kiwis is open for business

  • News
  • December 5, 2017
Amazon for Kiwis is open for business

After a soft launch last week, Amazon has officially opened its website to Australian and New Zealand customers. But are shipping costs and waiting periods worth it for Kiwi customers?

It has been said that the Australian retail landscape will be changed as we know it. The arrival of Amazon even has Kiwi retailers worrying about their own future in the market.

With all the hype surrounding Amazon as this large, sell-all, fast-shipping retail behemoth, the question of whether the savings are worth it to Kiwis has been overlooked.

A simple price comparison shows the prices on brands sold in New Zealand stores are not that much different to those on Amazon's Australian website. Pharmacy beauty brands differ only a few dollars, where as some labels like Maybelline and L'Oréal can be found for the same price or cheaper at our own department stores, such as The Warehouse.

The few dollars in that make Amazon a cheaper alternative are usually cancelled out by shipping costs. The US version of Amazon has a $50 shipping fee for all New Zealand orders, a hefty price to pay for an average cart price of $120.

Some items on Amazon AU don’t ship to New Zealand, with the site claiming, “no sellers are currently delivering this item to New Zealand.”

With Amazon's distribution model, some retailers still hold their own stock yet sell through the site. If a seller doesn’t ship to New Zealand, then the goods are still unavailable to Kiwis, listed on the site or not. Amazon is not targeting New Zealand currently, so it is unsurprising its distribution model in Melbourne would focus solely on its Australian customers. Amazon for Kiwis at this stage is still a privilege, not a right. 

Shipping through Amazon to New Zealand depends on the product and how much is ordered. Shipping averages out at around $9, yet some brands offer free delivery even through Amazon. Shipping is dependent on the brands being purchased as well as how large the item is.

All orders over $49 are free to all parts of Australia. Yet other smaller purchases seem to be determined by a percentage basis: the cheaper the item, the cheaper the shipping. With larger, more expensive items, such as TVs and other electronics, the shipping rate is determined by the brand and their usual rate.

Pricewise Amazon is cheaper, even when the exchange rate is applied. But for a purchase to be worth the shipping and waiting period of up to two weeks, shoppers should plan purchases in advance as bulk orders work better through the site. Brands that are not in New Zealand are plentiful on the site, meaning Kiwi consumers now have a lot more options for online browsing, even just out of general interest. 

Yet Kiwis can now browse through some Australian brands for new and exciting products. The website is fully live and itself is an experience of one of the biggest retail offerings now available to our shores.

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Direct sales: How multi-level marketing works

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: How multi-level marketing works

The $200 million-plus direct sales economy contains many lessons retailers can use. As part of a wider look at this thriving corner of retail, we created a quick explainer showing how this business model typically works.

Read more
 
 

Direct sales: Meet the upliners

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the upliners

We profiled different participants in the direct sales industry to find out what retailers can learn from them. Meet Isagenix distributors Adam Nesbitt and Bianca Bathurst.

Read more
 
 

Direct sales: Meet the business builder

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the business builder

As part of a wider story looking at what retailers can learn from the direct sales industry, we profiled Isagenix distributor Ben Frost.

Read more
 

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  • David Farrell
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In recognition of April being Autism Awareness Month, retail commentator Dave Farrell considers the role of those on the spectrum in retail.

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  • Sponsored Content
  • April 18, 2019
  • Sponsored content
How on-trend is your retail business?

New insights from Visa highlight five evolving trends emerging from savvy retailers around the world. We’ve taken these global trends and looked at how they are playing out with merchants in New Zealand, and we’d now like to hear what you think of them.

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