Retailers of discretionary goods, be they shoes or taps, will have to offer a service that's both prompt and reliable if they want to compete with Amazon. Credit:Shutterstock There is nothing more frustrating for a customer than assurances (before you pass a retailer your credit card) that goods will be available on a particular day and that promise is broken. Every chasing-up phone call from me was greeted with news there would be another extension to the promised delivery time. My queries as to why it took so long to get product from the Melbourne warehouse to Sydney were met with the response - that's just the way it is - and there is nothing we can do about it. My phone calls were generally answered by staff who promised someone would call back in five minutes after having called the warehouse. Hours later maybe I got a return call. Sometimes no call. And when orders finally did land, they were missing elements. While the bathroom mirror was finally delivered (late), the toilet roll holder is still not here. It was ordered on the 9th of November.

Reece's 'Nordic Minimal' trend features simple, clean lines that will not date. Just as well given the time it can take to take delivery. Credit:Reece As a frustrated and vocal customer, it was clear the sales assistants thought I was a consumer from hell. And Reece is not some small-scale supplier. It is part of a large listed retail group with 500 outlets across the country. It already has plenty of competition. Now thanks to Amazon, it's about to get more. Incidentally, the small-two store supplier from which I bought a bathroom basin managed to get the product from its warehouse in Melbourne to the Sydney store within two days. And the few things I got from Harvey Norman were available immediately.

Even the bathroom lights I bought from a small store, which had to come in from Belgium, took the same time to arrive as a couple of taps from Reece. While you may think this column sounds like rant about a poor customer experience, there's more to it than that. The arrival of Amazon will divide Australian retailers into those that deliver a very keen service proposition and those that don't. Retailers of regular discretionary goods, be they shoes or taps, will have to compete on price and offer a delivery service that's both prompt and reliable. Even those like Gerry Harvey are going to be challenged. JB Hi Fi - which runs one of the best retail operations in the country - will be caught in the path of the Amazon cyclone because of the nature of their product range despite amazing service levels and a low cost base.

For all retailers that will compete with Amazon, service levels will be crucial - it won't be enough to just have an comprehensive website that is inventory heavy and easy for online shoppers to navigate. We know from the experience of countries already invaded by Amazon that there will be pressure on margins of incumbent retailers. But the local providers will also have to lift their game on service and product range. The department stores, particularly Myer, have got some service catching up to do in order to defend themselves against Amazon, whose first wave of attack is expected to cut a swathe through retailers selling apparel and cosmetics and electronics. Customers are itching to move online, get transparency on price and guaranteed delivery within a few days. A customer survey by UBS on Thursday found 42 per cent of respondents expected to spend more online when Amazon arrives.

But even after accounting for increased online purchasing, more than 80 per cent of retail transactions will still be undertaken in bricks and mortar stores, the survey suggests. Loading They will all need to lift their game.











