Australian Kindle Distributor Fails

darryl · 03-26-2016, 11:13 PM

Some years ago Amazon appointed a local retail chain, Dick Smith Electronics, to distribute Kindles in Australia. There was a small display of some Kindle Models in each of its many stores, but I never noticed any heavy promotion. Kindle does not have the market domination here that it has in the US, and the adoption of ereaders, though not insignificant, lags well behind the US.

Though now old news in Australia, it does not seem to have been mentioned previously here that Dick Smith is to be liquidated. At the moment stores are still operating as they attempt to dispose of their stock at ever increasing discounts. I'm not sure of the closure date for stores but the one in my local mega suburban mall looks like a ghost of its former self. Kindle has not escaped the discounts, with 20% off at the moment. Even Apple items are discounted 10%. They also have an online store with similar discounts http://search.dicksmith.com.au/search#w=kindle. For example, a Kindle Voyage has been discounted from $A299 to $A239.20, about $US180 or 160 Euros. Though cheaper than the US price by $20, it would still not be worthwhile for a US resident to import, as the costs of postage would almost certainly consume the difference and then some. I also doubt importing to Europe would be worthwhile. Though I will be interested to see if the price comes down any further.

Of more interest to me is what Amazon, presumably now left without an Australian distributor, is planning to do here. What is more likely to happen is that Amazon will do nothing, or appoint another distributor for its hardware. What I would like is for Amazon to take this opportunity to enter the market here. One of the smaller book chains here has stores in good locations which would make wonderful Amazon retail stores. The market here is badly in need of a good shake-up and some healthy competition. Or, in fact, any competition at all. Though unlikely, I for one am an Australian who would love to see Amazon here.

davidfor · 03-27-2016, 01:04 AM

It will be very strange not having Dick Smith shops around. Though I keep expecting to see the electronic components on sale that they were originally known for.

As to selling Kindles, the last time I was in a Big W, they had them. That was a couple of months ago. They aren't listed on the web site now. Of course, Big W and Dick Smith are part of the same group, which probably explains it, but it give an obvious channel for Kindles to be sold in down-under.

darryl · 03-27-2016, 05:55 AM

Big W did have Kindles at one stage, but I haven't seen them for a while. That was back when they were part of the Woolworths group. But Dick Smith was sold after that. There would certainly be worse channels than Big W for Amazon to choose for their Kindles. Probably something like this will happen. Though what I would really like to see is for Amazon to embrace Australia, even if only as a testing ground for some of its ideas. For instance, I'd love to see it acquire, say, QBD or something similar and try its visions for retailing here. Unfortunately, I'm not holding my breath.

murg · 03-27-2016, 08:33 AM

My understanding is that Amazon is in the process of opening warehouses in Australia so they can direct sell. At that point, I'd expect Amazon to be their own distributor.

Dick Smith hasn't been the same since Woolies took them over. Jaycar is a decent alternative.

Dick Smith hasn't been part of Woolies (and Big W) for over two years now (or so).

cadele · 03-27-2016, 08:34 AM

I noticed recently that Officeworks has started selling Kindles again, even the Voyage I think.

I wish Amazon would open a full store in Australia like it has in the UK. Until then, I won't change from the US store for ebooks.

darryl · 03-27-2016, 09:37 AM

Warehouses? I hadn't heard about that, but it is very welcome news! Though perhaps not so welcome for some.

murg · 03-27-2016, 05:58 PM

Quote:

Originally Posted by darryl

Warehouses? I hadn't heard about that, but it is very welcome news! Though perhaps not so welcome for some.

I'd still classify this as a rumour at this point. I remember reading it somewhere, but can't find a relatively recent reference on the web about this.

As it is, shipping costs to Australia for Amazon fulfilled items fro the US are probably about the same or cheaper than the shipping costs inside of Australia.

Nate the great · 03-27-2016, 07:14 PM

That's just a retailer who happened to carry Kindles. it was not "appointed" a Kindle distributor.

darryl · 03-27-2016, 10:22 PM

Thanks Nate. Dick Smith was a retailer and not a distributor in the sense of a wholesaler. I'm not aware of the exact arrangements, but at one stage Dick Smith was advertising their "official" appointment and were the only place to buy Kindles locally. The local Amazon website was actually directing buyers to Dick Smith. A look at that site now shows that Officeworks, another local retail chain, seems to have taken their place. Of course, Amazon still sells directly to Australians except in the case of the Voyage.

03-26-2016, 11:13 PM	#1
darryl Wizard Posts: 3,108 Karma: 60231510 Join Date: Nov 2011 Location: Australia Device: Kobo Aura H2O, Kindle Oasis, Huwei Ascend Mate 7	Australian Kindle Distributor Fails Some years ago Amazon appointed a local retail chain, Dick Smith Electronics, to distribute Kindles in Australia. There was a small display of some Kindle Models in each of its many stores, but I never noticed any heavy promotion. Kindle does not have the market domination here that it has in the US, and the adoption of ereaders, though not insignificant, lags well behind the US. Though now old news in Australia, it does not seem to have been mentioned previously here that Dick Smith is to be liquidated. At the moment stores are still operating as they attempt to dispose of their stock at ever increasing discounts. I'm not sure of the closure date for stores but the one in my local mega suburban mall looks like a ghost of its former self. Kindle has not escaped the discounts, with 20% off at the moment. Even Apple items are discounted 10%. They also have an online store with similar discounts http://search.dicksmith.com.au/search#w=kindle. For example, a Kindle Voyage has been discounted from $A299 to $A239.20, about $US180 or 160 Euros. Though cheaper than the US price by $20, it would still not be worthwhile for a US resident to import, as the costs of postage would almost certainly consume the difference and then some. I also doubt importing to Europe would be worthwhile. Though I will be interested to see if the price comes down any further. Of more interest to me is what Amazon, presumably now left without an Australian distributor, is planning to do here. What is more likely to happen is that Amazon will do nothing, or appoint another distributor for its hardware. What I would like is for Amazon to take this opportunity to enter the market here. One of the smaller book chains here has stores in good locations which would make wonderful Amazon retail stores. The market here is badly in need of a good shake-up and some healthy competition. Or, in fact, any competition at all. Though unlikely, I for one am an Australian who would love to see Amazon here. Last edited by darryl; 03-26-2016 at 11:23 PM.

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03-27-2016, 01:04 AM	#2
davidfor Grand Sorcerer Posts: 24,907 Karma: 47303748 Join Date: Jul 2011 Location: Sydney, Australia Device: Kobo:Touch,Glo, AuraH2O, GloHD,AuraONE, ClaraHD, Libra H2O; tolinoepos	It will be very strange not having Dick Smith shops around. Though I keep expecting to see the electronic components on sale that they were originally known for. As to selling Kindles, the last time I was in a Big W, they had them. That was a couple of months ago. They aren't listed on the web site now. Of course, Big W and Dick Smith are part of the same group, which probably explains it, but it give an obvious channel for Kindles to be sold in down-under.

03-27-2016, 05:55 AM	#3
darryl Wizard Posts: 3,108 Karma: 60231510 Join Date: Nov 2011 Location: Australia Device: Kobo Aura H2O, Kindle Oasis, Huwei Ascend Mate 7	Big W did have Kindles at one stage, but I haven't seen them for a while. That was back when they were part of the Woolworths group. But Dick Smith was sold after that. There would certainly be worse channels than Big W for Amazon to choose for their Kindles. Probably something like this will happen. Though what I would really like to see is for Amazon to embrace Australia, even if only as a testing ground for some of its ideas. For instance, I'd love to see it acquire, say, QBD or something similar and try its visions for retailing here. Unfortunately, I'm not holding my breath.

03-27-2016, 08:33 AM	#4
murg No Comment Posts: 3,238 Karma: 23878043 Join Date: Jan 2012 Location: Australia Device: Kobo: Not just an eReader, it's an adventure!	My understanding is that Amazon is in the process of opening warehouses in Australia so they can direct sell. At that point, I'd expect Amazon to be their own distributor. Dick Smith hasn't been the same since Woolies took them over. Jaycar is a decent alternative. Dick Smith hasn't been part of Woolies (and Big W) for over two years now (or so).

03-27-2016, 08:34 AM	#5
cadele Addict Posts: 372 Karma: 3710372 Join Date: Feb 2010 Device: Kindles, Sony 650	I noticed recently that Officeworks has started selling Kindles again, even the Voyage I think. I wish Amazon would open a full store in Australia like it has in the UK. Until then, I won't change from the US store for ebooks.

03-27-2016, 09:37 AM	#6
darryl Wizard Posts: 3,108 Karma: 60231510 Join Date: Nov 2011 Location: Australia Device: Kobo Aura H2O, Kindle Oasis, Huwei Ascend Mate 7	Warehouses? I hadn't heard about that, but it is very welcome news! Though perhaps not so welcome for some.

03-27-2016, 07:14 PM	#8
Nate the great Sir Penguin of Edinburgh Posts: 12,375 Karma: 23555235 Join Date: Apr 2007 Location: DC Metro area Device: Shake a stick plus 1	That's just a retailer who happened to carry Kindles. it was not "appointed" a Kindle distributor.

03-27-2016, 10:22 PM	#9
darryl Wizard Posts: 3,108 Karma: 60231510 Join Date: Nov 2011 Location: Australia Device: Kobo Aura H2O, Kindle Oasis, Huwei Ascend Mate 7	Thanks Nate. Dick Smith was a retailer and not a distributor in the sense of a wholesaler. I'm not aware of the exact arrangements, but at one stage Dick Smith was advertising their "official" appointment and were the only place to buy Kindles locally. The local Amazon website was actually directing buyers to Dick Smith. A look at that site now shows that Officeworks, another local retail chain, seems to have taken their place. Of course, Amazon still sells directly to Australians except in the case of the Voyage.