Amazon says it is bringing retail shopfront service to Australia

A Dick Smith store ahead of its final closure. Saeed Khan  AFP  Getty Images

However, Australians already have a healthy interest in Amazon's goods and services, judging by Nielsen and Hitwise data. The company has confirmed that it is in the planning stage, but that's about it. There's no date yet for when Amazon will launch, but in the short term it's good news.

The Australian operation would be the USA giant's fourth Amazon Marketplace in Asia after China, Japan and India and its 12th globally. There are high chances that it would either be in Brisbane, Sydney or Melbourne.

However, if other countries are reasonable indicators, then the retail environment in Australia is set to change drastically.

"They will move rapidly and decisively on this market".

One thing is for sure, the launch is hotly anticipated, with 56 percent of Australian adults telling Nielsen earlier this year that they will shop from Amazon when it lands.

Harford said Kiwi retailers would need to focus on top-class service and low prices to combat the threat posed by Amazon. "Even the biggest firms in New Zealand lack scale and that makes price something that needs to be kept down".

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Gizmodo is reporting today that the online retail giant will officially be making its way to Australia, providing the outlet with its first official statement about its expansion into the region.

The Australian operation would be the company's fourth Amazon Marketplace in Asia after China, Japan and India and its 12th globally.

The confirmation comes on the back of a number of different leaks regarding Amazon have come forth including Amazon shopping for physical locations for their massive warehouses here in Australia, which SMH reported on a year ago.

Last month a Credit Suisse analyst warned that retailers such as Myer, Harvey Norman, JB Hi-Fi, Supercheap Auto, Rebel and Amart Sports, BigW, Kmart and Target would be hardest hit by Amazon's arrival, adding that the online retailer was likely to reach 5% market share within five years.

However, Harford has acknowledged the removal of the GST advantage could encourage Amazon to build a fulfillment centre in New Zealand.

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