Toilet paper to drinks: Shoppers drawn to Amazon for essentials

Amazon’s focus in Australia goes beyond essential spending. The company remains optimistic about luring in local shoppers with bargains when it comes to discretionary purchases.

The group’s flagship sales event, Prime Day, starts on July 11 and Menzies is confident there will be strong interest in coffee machines, TVs and video game consoles. The event is also a driver for the group’s membership model, Prime, given the offers are targeted at Prime members.

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Amazon does not disclose the number of Prime members, but retail analysts have flagged the growth of the program as a major competitive advantage for the company over local retail giants. The price of Prime has recently increased from $6.99 to $9.99 per month.

The major supermarkets and everyday retailers have also been developing their own delivery subscription models over the past two years. Kmart and Bunnings owner Wesfarmers is doubling down on growing its membership program, OnePass, which offers free delivery on a range of its brands and the option to bundle in a Disney+ subscription for one monthly fee.

With rising cost of living pressures spurring Australian shoppers to seek out the best value, retail analysts said Amazon had cemented its position as a key platform for bargain hunting.

“Amazon is increasingly the first point of call [for researching products],” Jarden analysts said last month. Most at risk remain the office, electronics, fashion, house and garden, and recreation categories, they added.

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