Amazon has joined Australia's multi-billion dollar food and grocery market and is selling products 50 percent cheaper than Woolworths and Coles. The e-commerce giant is selling a number of household staples at half the price Woolworths and Coles are selling them for.
Amazon is also offering slashed prices on top brands. Amazon, which makes up less than one percent of the online food and grocery market, grew nearly 40 percent over the last 12 months.
Woolworths has questioned if Amazon is selling products below cost or whether Australian suppliers are giving them better deals. Woolworths has made plans to ask suppliers to clarify how their deals work with Amazon early next year.
Suppliers who favour Amazon risk being replaced by rival and private brands if their products underperform in sales in Woolworths stores. Retailers can delist products from shelves if sales fail to meet targets, according to the Food and Grocery Code of Conduct.
Suppliers risk being delisted by Coles and Woolworths, which account for 69 percent of the food and grocery market and will have to rely on Amazon.
Despite the competition, a Woolworths spokesperson has stated that the supermarket has said they are always focused on offering competitive prices for their customers. Market sources said Amazon was possibly sourcing some international brands for cheaper stock.
Source: dailymail.co.uk
