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Amazon undercuts Woolworths and Coles on food and grocery prices | AFR

Amazon’s assault on the $100 billion food and grocery market could reignite the battle between multinational food and grocery suppliers and Woolworths, which believes brand owners may be favouring the e-commerce giant with cheaper prices on brands such as Colgate, Huggies, Omo and Finish.

After stepping up pressure on Woolworths and Coles by adding food and beverages to its non-food pantry range last month, Amazon Australia is now undercutting the dominant supermarket chains by as much as 50 per cent on household staples and quickly capturing a foothold in the market.

Woolworths sources said Amazon.com.au was selling food and groceries at lower prices than Australia’s largest supermarket chain on a number of products and in some cases at prices below Woolworths’ purchase price.

“The question is are they selling below cost, which would be inappropriate. Do they have global [pricing] deals or are Australian suppliers giving them better deals than the major supermarket chains – it’s not clear,” a Woolworths source told The Australian Financial Review.

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Amazon undercuts Woolworths and Coles on food and grocery prices | afr.com.