Friday, November 30th 2018
Daily Mail
- Amazon Australia is selling groceries 50 per cent cheaper than other markets
- Products such as toothpaste, nappy wipes and laundry powder are half price
- Supermarkets have questioned the relationship between Amazon and suppliers
Amazon has joined Australia’s multi-billion dollar food and grocery market and is selling products 50 per cent cheaper than Woolworths and Coles.
The e-commerce giant is selling a number of household staples at half the price Woolworths and Coles are selling them for.
Amazon is also offering slashed prices on brands such as Huggies, Omo and Finish.
Amazon is selling groceries 50 per cent cheaper than supermarket giants Coles and Woolworths
Colgate Total toothpaste is sold at Amazon for $3.50 in comparison to $7 at Coles and Woolworths, while Omo laundry powder is sold for $22 versus $30 at the other supermarkets
Huggies nappy wipes cost about $3.99 on Amazon in comparison to $6 at both supermarkets
Currently, Colgate Total toothpaste costs $3.50 on Amazon.com.au but is $7 at Coles and Woolworths.
Huggies nappy wipes cost about $3.99 on Amazon in comparison to $6 at both supermarkets.
Omo laundry powder is $22 compared to $30 and Finish dishwasher tablets are costing $16.99 versus $35.
Amazon, which makes up less than one per cent of the online food and grocery market, grew nearly 40 per cent over the last 12 months.
Woolworths has questioned if Amazon is selling products below cost or whether Australian suppliers are giving them better deals, reports The Australian Financial Review.
Woolworths has made plans to ask suppliers to clarify how their deals work with Amazon early next year.
Suppliers who favour Amazon risk being replaced by rival and private brands if their products underperform in sales in Woolworths stores.
Retailers can delist products from shelves if sales fail to meet targets, according to the Food and Grocery Code of Conduct.
Suppliers risk being delisted by Coles and Woolworths, which account for 69 per cent of the food and grocery market and will have to rely on Amazon.
Despite the competition, a Woolworths spokesperson told Daily Mail Australia the supermarket has said they are always focused on offering competitive prices for their customers.
Woolworths has questioned if Amazon is selling products below cost or whether Australian suppliers are giving them better deals
Market sources said Amazon was possibly sourcing some international brands for cheaper stock.
Suppliers who source international brands risk having Australian consumers complain about the differences in the quality of products and will blame the supplier – as they did when Aldi imported Nescafe from Indonesia and Brazil in 2006.
Coles has said they have ensured the supermarket has sold quality products at an affordable price.
The supermarket has said they are proud of their ‘Australian first sourcing policy supporting Aussie farmers and producers’.
‘One hundred per cent of fresh meat, 96 per cent of fresh fruit and vegetables and more than 85 per cent of Coles Brand packaged food and drinks are Australian,’ a Coles spokesperson told Daily Mail Australia.
The 2018 financial year is the ninth consecutive year of Coles lowering prices for customers, the spokesperson said.
‘We understand many Australians face cost of living pressures every day,
‘We are absolutely committed to making life easier for our customers by continuing to offer great value across the Coles group.’
Coles supermarket has said they are proud of their ‘Australian first sourcing policy supporting Aussie farmers and producers’
Amazon Australia has said they ‘obsess over the things’ they believe customers ‘will always care about’ such as ‘low prices, vast selection and fast delivery’.
Daily Mail Australia has contacted Amazon Australia for comment regarding the relationship between their company and their suppliers.
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