Australian Retailer to Drop Amazon Hardware Over Margin and Customer Fears

A major Australian retailer is poised to stop selling Amazon-owned products, including Blink and Ring security cameras, due to concerns over shrinking margins and customer loss to Amazon. The decision stems from Amazon's aggressive pricing during its Prime Big Deal Days sale, which undercuts physical retailers and draws customers away.

Sources indicate that Bunnings, which sells Blink cameras, has seen a decline in sales of other security products, reducing the average selling price in the category. Blink cameras, priced between A$99 and A$179, are significantly cheaper than competitors, leading shoppers to opt for these lower-cost options instead of higher-priced systems.

The primary concern for retailers is the post-sale impact. When customers subscribe to Blink, they must link their accounts to Amazon, giving the tech giant direct access to customer data and future purchases. Retailers bear the cost of acquiring customers, including advertising and inventory, while Amazon reaps the long-term benefits.

This issue has intensified following Amazon’s September 2026 announcement to integrate more advertising into Alexa for Shopping, further positioning Amazon to monetize customer relationships. Retailers worry they are essentially funding customer acquisition for Amazon, with minimal hardware margins in return.