Amazon is poised to take a bigger bite of Australia’s $3-billion online food and grocery market.

Early next year, the online retail giant will launch Subscribe & Save, a discounted subscription service for regularly bought goods such as pet food and toilet paper.

Associate Professor in retail operations and consumer behaviour Gary Mortimer tells John Stanley “it’s a really smart move”.

But “it’s still early days,” he says.

Amazon also has the ability to undercut the prices of other major competitors.

Associate Professor Mortimer says it’s because “they’re buying in bulk”.

“They have no stores, no physical presence across Australia.”

Click PLAY below to hear the full interview