CANBERRA, Sept. 8 (Xinhua) -- E-commerce giant Amazon could launch its Australian operation within 60 days with disastrous consequences for local retailers, a report has found.
In a report sent to clients on Friday, Citibank retail analyst Brian Raymond warned that Amazon's Australian operation would be launched before Nov. 24.
The report has prompted fear on behalf of retailers that Amazon could undercut them during the crucial Christmas shopping period, potentially sinking some businesses which rely on the end-of-year sales.
"Supplier feedback across many categories suggests a pre-Christmas Amazon launch date is likely," Raymond said in the report.
"Launch timing remains uncertain and subject to website and logistics testing, but we would expect a formal launch to occur sometime in October 2017, ahead of Black Friday on 24 November."
Amazon, who's Chief Executive Officer (CEO) was named the richest man in the world by Forbes and Bloomberg in July, announced in August that its first Australian distribution center would be built in the Melbourne suburb of Dandenong.
Raymond said Amazon would offer its Prime service, which includes unlimited free two-day shipping as well as cloud storage and media streaming, when the distribution center was opened.
"We expect Amazon to offer free delivery over a value threshold, with the (Amazon) Prime service to be offered later, potentially coinciding with Prime Day in July 2018," he said.
"Amazon will be buying directly from leading suppliers, holding inventory and setting retail prices.
"Amazon is likely to maintain a strategy of matching or being the lowest price in the market at all times. This could spark a response from incumbent retailers who are intent on not being beaten by Amazon on price during the key pre-Christmas sales event."
Citibank estimated that Amazon's quarterly sales would hit 160 million U.S. dollars, or 0.2 percent of total national retail sales, my mid-2018.
