Amazon has some way to go before it reaches competitive level...

Amazon has some way to go before it reaches competitive level with WOW. There are many issues with Amazon and people are obsessed with it.

It has to take over a few retailer markets first before it could compete with Wow. JB HiFI, Harvey Norman are the major competitor to them on the retail fronts plus other minor players such as Kogan.

It has just taken Whole food in US which will take some times to chew, and now planning to start health fund in US which is even a bigger fish to fry. ( it will take sometimes to cook....)

The only place WOW would be affected is Big W chain which is under water. Next report this month will give you some glue which way it is going.

If you look at Amazon Au website. It is not competitive at all. I could buy cheaper stuff from other retailers. It has no moat in this regard at this stage. I could not be bother to look through it. Instead I get better deal on ebay or Aliexpress, it does not look good on Amazon. It might be king in US, UK and Singapore, it is a different world out here and internationally.

Looking at WOW the 3 perceptions you have

1) Value - WOW is trying to be the better place for shopping. It is changing the perceptions of people about the food price now. It is improving in the last financial report. The lastest report from investment firm also suggested that it is leading coles in sale by large margin. We will see what the next report says.

2) Convenience - WOW is everywhere in the city. It speaks for itself.

3) Service - I go to a rural town of 3000 people which is 60 km away from Ipswich Qld and it delivers goods there 3 times a week. People lives in a small town just order online and have goods delivered now instead of going to IGA in town even though the price is only slightly dearer. WOW service is definitely stand out here in my opinion. Although Amazon has free service if you subscribe, WOW has the similar thing and the delivery is free if you purchase over certain amount, otherwise is $11 per order, cheaper if you buy bulk. Competitive I would think, and good value for shopping if I was from the small town.

It is going to be sometime before Amazon to catch up with Australia retailers ( if it could do it). At this current rate, I have not seen any Amazon excitement translated into the results except for bubbles in the air.