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New Amazon.sg store could create channel conflict

New Amazon.sg store could create channel conflict

Consumer and enterprise solutions on offer from vendors such as Cisco, Dell, HP, Lenovo, ASUS, Acer, Microsoft, Hewlett Packard Enterprise and IBM

Credit: Dreamstime

Amazon has launched Amazon.sg in Singapore in a move which places the technology giant in direct conflict with the channel ecosystem.

Available through desktop, mobile browser and application, the new website aims to widen the net for customers seeking products from both local and international markets.

Central to this will be departments such as Computer & Accessories; Electronics and Office Electronics, bypassing the supply chain on occasions through the sale of devices, storage, routers and printers across both consumer and enterprise segments.

For example, Cisco security solutions can be purchased for as much as S$24,444, switches as high as $11,976 and routers topping $1274.

Likewise, the most expensive Dell switches - available with free international delivery via Prime - are being sold for $7,711, alongside SonicWall applications and rugged laptops from $6,344 and $4,443 respectively.

Spanning both consumer and enterprise segments, other key vendors on display include HP, Lenovo, ASUS and Microsoft, alongside IBM, Hewlett Packard Enterprise and Acer.

Given the quick order turnaround and expanded customer choice, users can now - in some instances - bypass the channel entirely, removing the need for distributors and resellers, especially retailers.

“With Amazon.sg, we want to provide what customers have been asking us for: the ability for everyone to shop on desktop and mobile, more local and international selection from Amazon and trusted sellers, paired with fast and reliable delivery,” said Henry Low, country manager of Singapore, Amazon.

Low said all customers in Singapore will receive free delivery on eligible orders over $40 within 2-3 days, while those who sign up for Prime will gain free one-day delivery on local selection with no minimum spend. This is in addition to free international shipping on eligible orders over $60 for Amazon International Store products.

“And we are also adding even more benefits for Prime members,” Low added. “This marks the next step for us in Singapore, and we will continue to work hard to earn the trust of Singapore customers by growing our product range, ensuring low prices, and providing a convenient and trusted shopping experience.”

Furthermore, small and medium sized businesses (SMBs) can now offer products to online shoppers through Amazon.sg, creating a dedicated Singapore marketplace in the process.

The move is designed to make it easier for local businesses to sell products on Amazon, reach more customers and expand operations.

In return, Amazon offers selling partners access to listing tools, payment processing and credit card fraud protection, backed up by promotional features to boost customer discovery and analytics to improve selling.

“We are a proud partner of Amazon in eight countries and are excited for Amazon to launch in our home Singapore,” said Alex Ostrowski, co-founder and CEO of Supernova Group, a technology consulting firm. “We trust this will be a great opportunity for Amazon as well as merchants like us.”

At a global level, Amazon's stores reach more than 300 million active customer accounts worldwide. In 2018, the number of SMBs exceeding $1 million in sales in the vendor's stores worldwide grew by 20 per cent.


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