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Amazon boasts Australia delivered biggest opening day in history

Australian retailers may be feeling a shiver down their spines after U.S. online shopping giant Amazon.com boasted “first day orders on Amazon.com.au were higher than for any other launch day in Amazon history“.

Amazon claimed “tens of thousands” shoppers visited the site placing orders across all 23 available categories which contrasts to some analysts’ claims that the launch was disappointing in terms of pricing and competitive offering.

Amazon may also be a little late in catching the consumer dollars for the critical Christmas shopping period.

As a result of the underwhelming impression of Amazon’s initial offering retailers like Myer Holdings Ltd (ASX: MYR), JB Hi Fi Limited (ASX: JBH) and Super Retail Group Ltd (ASX: SUL) have all enjoyed share price gains since yesterday.

Amazon is also a double-edged sword as some retailers are able to leverage its vast consumer base, delivery speeds, and network effects to increase sales of their own products.

For example affordable natural beauty products retailer BWX Ltd (ASX: BWX) is selling its Sukin shampoo, shaving gel, and moisturiser on the Amazon website, while discounted electronics goods retailer Kogan.com Ltd (ASX: KGN) is selling lights, vacuum cleaners, batteries and more.

Evidently Amazon is likely to have a disruptive impact and the listed Australian retail sector looks something of a minefield for bargain hunters to tread carefully in over the years ahead.

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Motley Fool contributor Tom Richardson owns shares of BWX Limited and Amazon.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of BWX Limited and Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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