Amazon launches in Australia, worrying competitors

Amazon's launch on Tuesday in Australia could mean big change for the business world.

Its Melbourne warehouse is colossal, its systems advanced and its prices are cheap.

It's worrying for competitors like Harvey Norman, but a boon for consumers.

"The big thing that I'm worried about is that they'll go out and do predatory pricing - that means they'll go out and sell at a loss to sell other retailers broke," Harvey Norman co-founder Gerry Harvey says.

For consumers more competition means better deals, and for small businesses it's a new opportunity to reach customers online.

The impact could be felt from Australia to New Zealand and well beyond. Amazon's New Zealand launch is likely to be just a matter of time.

Kiwi businesses are already worried, according to Massey University research which found just forty percent of firms expect their sales to increase this year.

For now Kiwi customers are still shut out, as most categories on Amazon Australia don't ship to New Zealand yet.

But those restrictions aren't expected to last and it's not just retail shops under threat - Amazon's moving into groceries too.