Amazon will begin distributing fresh groceries in Australia through a new partnership with Harris Farm Markets, marking its first fresh-food offering in the Australian market.

The service prioritizes fast delivery, offering two-hour windows from Harris Farm’s Leichhardt store, with same- or next-day options for orders.

Initial coverage will span more than 80 Sydney postcodes, bringing Harris Farm products to Amazon customers with same-day and next-day delivery.

Experts warn that price strategies, including fees and price-matching, can complicate true cost savings for fast-delivery grocery shopping.

The partnership is expected to heighten rivalry with Woolworths and Coles, who have heavily invested in their own home-delivery services.

While competition benefits shoppers, some consumers prefer supporting Australian bricks-and-mortar stores, a sentiment echoed in criticisms of international retailers operating locally.

Industry observers note Coles and Woolworths are investing in automation and e-commerce to maintain efficiency and speed, while Amazon’s scale and willingness to operate at low or negative margins could pressure traditional players.

The collaboration represents a strategic challenge to incumbent retailers, with potential changes to pricing, delivery speed, and assortment in urban markets.

Both companies plan to roll out to more Sydney stores after refining the customer experience, as two-hour delivery becomes a key battleground in online grocery.

The report is part of The Sydney Morning Herald’s National section.

Woolworths and Coles frame the development as evidence of ongoing competitive dynamics in Australia’s grocery sector.

Industry context shows home delivery is a fast-growing revenue stream for major Australian supermarkets, which have heavily invested in delivery infrastructure to capture online demand.