Amazon recently launched in Australia, expanding its products and services away from just Kindle book sales to a full local online marketplace.
Although the initial reviews of Amazon have been mixed, with some citing long delivery times and higher-than-expected prices as indication of a failed launch campaign, there’s no doubt that Amazon will be here to stay, and will likely change the retail landscape as we know it.
Despite its lacklustre launch in Australia, you only need to look at Amazon’s overseas sites to know that Amazon has the power to shift retail trends.
For instance, predictions have been made that Amazon could make up 50% of all US e-commerce by 2021.
In part, the arrival of Amazon could be great news for small Australian businesses, as the new local online marketplace offers a new, highly visible, channel through which a business can sell its goods online.
As a result, any businesses looking to profit from Amazon’s arrival would also do well to ensure their digital offering to customers is as easy and hassle-free as possible, especially when it comes to order fulfilment and delivery times.
An accounting firm Melbourne is one place where you can get advice on how to manage the accounting implications of moving to an online platform.
Of course, there is the threat that there may be a drop in certain product prices should Amazon and the larger retailers on the site reduce prices in order to attract customers.
If such price-matching occurs, smaller retailers will need to take extra care of their margins and pricing strategy to ensure they remain competitive within a changing market.
Your local accounting firm Melbourne is one place where you can get advice as to how best to manage your margins in this environment.
You can easily find an accountant Melbourne, for example an accountant South Yarra, to discuss all your needs in this regard.
For more information regarding the tax and accounting implications of expanding your business online, please visit your local accounting firm Melbourne.