Amazon.com, Inc. has been allowed by Australian Competition and Consumer Commission chairman Rod Sims to set low prices to undercut competition when it starts trading here in November, just before the busy Christmas period.
Mr Sims is of the belief that Amazon's impact on other big retailers in Australia will not be as swift and severe as everyone is expecting and I would tend to agree as things like this take longer to have an impact than people think.
While the arrival of Amazon will have an adverse effect on the big retailers like Harvey Norman Holdings Limited (ASX: HVN) and JB Hi-Fi Limited (ASX: JBH), they have had time to prepare and be forced to improve.
Reject Shop Ltd (ASX: TRS) is a discount retailer I have previously written about that sells items that are not economically viable to sell online and makes a good portion of its sales from items picked up by customers browsing the isles. They also aim to create a community of people, who love to save, and this is where retailers can create a point of difference.
Despite this boost for Amazon, the ACCC will be watching to make sure they play by Australian rules and pay their share of tax.
