Aussies benefit from Amazon’s Nintendo Switch price war
Local retailers aren't throwing in the towel to Amazon Australia just yet.
Since launching Down Under early this morning, Amazon has proven quite the disruptive force on the Australian retail market. From laundry products to fitness trackers, the online juggernaut has put a lot of pressure on local retailers, even causing the share prices for Woolworths, Kogan, Bunnings and JB Hi-Fi to drop as consumers flock to the newest bargain provider on the block.
Already, though, we're seeing local retailers hit back at the US giant. JB Hi-Fi wasted no time in dropping its prices to match Amazon Australia across nearly its entire catalogue. Products like the Fitbit Charge 2 activity tracker and the Sonos Play wireless speaker dropped dramatically to compete with Amazon's massive markdowns, and, for as desperate as the move might seem, it's nevertheless a good one for consumers. Some people still prefer to walk into a physical store to make purchases, especially when they're dropping many hundreds of dollars on fragile electronics. For now, at least, JB Hi-Fi has that advantage over Amazon Down Under.
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Among the price drops, the one that stands above all is Nintendo's latest video game console, the Nintendo Switch. Released back in March, the system has yet to receive a legitimate price drop, but up until now, the system has retailed for around $470 here in Australia. This morning, though, Amazon knocked the floor out of the console's pricing, selling new units for just $399. Right on cue, JB Hi-Fi dropped its price to $399, too, a bold move considering Nintendo's tendency to strictly limit retailer margins on its hardware.
The big question, of course, is whether retailers like JB can continue to slash their prices as Amazon Australia's product catalogue expands in the coming months. Gerry Harvey, of Harvey Norman fame, has been one of the most vocal opponents of Amazon's arrival, and it'll be interesting to see how his company in particular responds to this new competitor.
Prices were last checked between 20 Dec 2017 and 21 Dec 2017 and may be subject to change. Prices include any discounts but exclude potential shipping charges.
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