Amazon’s Arrival In Aus Could Bring A Mammoth Price Drop In Electronics

US online retail giants Amazon are preparing to set up shop in Australia, and while it’ll bring its own electronics bargains our way, it could also push traditional retailers to drop their own prices like a sack of hot potatoes. 

Which is great news for nerds across the country, not so much for the local retailers who’ll have to match low prices to remain competitive. How low, you ask? According to Citi, around 10 percent on average. 

“In our view, average sale prices need to contract by 10 per cent to narrow this gap to 5 per cent,” wrote Citi analysts Bryan Raymond, Craig Woolford and Lokesh Gusain
In a price study they conducted, it was found that products on Amazon were, on average, 15 percent cheaper. 
They also reckon this isn’t necessarily a death sentence for traditional retailers, citing the UK‘s own reaction to the introduction of Amazon. “Retailers typically see margins begin to recover five or more years after Amazon launches Prime,” they said.
A Macquarie report estimates that Amazon could snatch up a quarter of online retail sales, or 12.5 percent of all retail sales at that time. This translates to a revenue of $14.5 billion. Hooley Dooley.

On the other hand, we may not even notice a difference at all, with Aussie retailers often already beating Amazon’s price for recently released products. For example, Citi noted that the Samsung Galaxy S8 is actually 10 percent cheaper at JB Hi-Fi.

Either way, you best hang on to your wallets. The discounts are coming. 
Source: News.com.au.
Photo: South Park.

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