Inside Retail: How to compete with Amazon

Within a few years Amazon will have a much stronger hand in Australia than most retailers currently selling online, if the latter do not find a way to either differentiate themselves or consolidate deliveries and extend their range. But recent moves show us that some of Amazon’s largest Australian competitors are moving in the right direction.

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Just as plants and animals adapt to changes in the environment, so Australian retailers are starting to evolve their strategies to compete with Amazon. Some noteworthy recent developments include:
 • Ebay offering its merchants a fulfilment service through Australia Post-subsidiary Fulfilio.
 • Coles introducing a premium Flybuys subscription option with benefits such as free online deliveries and an online movie service.
 • Woolworths launching Endeavour Marketplace, an online platform for drinks suppliers to offer niche and specialty products to customers.

Other retailers interested in evolving their strategies might benefit from this simple model, which helps explain the big picture and how to position yourself for success when competing with Amazon.

Read the rest Jonathan Reeve's article with Inside Retail here. Jonathan shares his model for positioning for success when competing with Amazon and analyses the Australian retail market for its weaknesses and strengths according to product offering and delivery model.