Would you pay postage for a $5, $10 item?? Amazon prime DOES NOT OFFER FREE SHIPPPING FOR ALL ITEMS and there is a price limit involved. Also, even if you are prepared to pay postage for low value items, say you need a bb cream in 2 hours or mascara, would you wait an extra day or two or more? What about toothpaste or a bandaid? Prescriptions? The answer to all of them is NO. The effect of amazon on Australian retail is highly overstated. The only retailers that would be affected or destroyed are those that sell high value non immediate products like electronics, TV, beds, fridges, games, consoles, headphones, computers, movies, videos, etc. They are retailers like Harvey Norman, Jb HIFI, Kogan, EB games, the good guys, retravision, greencross pet products like pet barn, free to air tv, etc. They would be decimated but for something like API it would be businesses as usual. The only thing that would affect API would be consumer sentiment and CONSUMER SENTIMENTS ALONE, NOTHING ELSE. I don't know about you but I have never ordered my shampoo, soaps, deodorant, vitamins or whatnot from the internet nor do intend to. At the moment API got this amazon effect priced in even though it is in a type that would be unaffected by amazon and yet it somehow gets put into the bargain among JB HI FI and Harvey Norman.....makes no logical sense. When consumer sentiments pick up so would API profit.
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