Ikea comes to Wagga (digitally), but is it a harbinger of Amazon?

The Swedish retail giant has announced a home delivery service for Wagga, Griffith, Young and Albury, which is expected to put further pressure on the market after the closures of Dick Smith, Masters and Pumpkin Patch in 2016.

One of Wagga’s biggest proponents of online retail is Lisa Hay, who started Urban Wonders in her mother’s loungeroom four years ago.

“I think retail has reached a turning point,” Ms Hay said.

“Since becoming a mum the majority of my shopping has been online, not so much for convenience but honestly I think you get better customer service online.”

One of the barriers to Ikea’s success in Wagga is like to be the cost of delivery, which will start at about $220, making a $79 ‘Billy’ bookcase an expensive proposition at almost $300.

However, the key to the success of online retailers is not just price but good customer service, which in turns drives positive feedback on social media. Ms Hay said she spent about four hours each day on Instagram and Facebook, but the rewards were obvious.

“I noticed (celebrity fitness guru) Michelle Bridges was following me and I wrote to her, she’s lovely,” Ms Hay said.

“There are so many ‘influencers’, especially on Instagram, I know I do a lot of my shopping that way, you follow someone and then a parcel’s arriving.”

Ms Hay may have started small, selling handmade clothes to friends, but she has grown to the point where she has a manufacturer and ships to New Zealand, the United States and Europe.

American retail juggernaut Amazon also started as a small online store, but 20 years later has left a string of businesses reeling from its impact on the market, like department store chain Macy’s, which slashed 10,000 jobs and closing 100 stores last year.

Analysts expect Amazon will set up an Australian arm later this year, offering books, toys, electronics and even fresh food online.