Here Are 5 ASX Stocks Threatened By Amazon! Is Their Defeat Inevitable?

There are several ASX Stocks Threatened By Amazon, and the recent financial reports lodged by the Great White Shark of Seattle with ASIC show the threat is ramping up. It is clear that Amazon is no longer merely an online bookstore operating on the fringes of Australian retail. In 2025, the company generated A$11.9bn in Australian revenue, up sharply from A$8bn in 2024, representing a near-50% increase in a single year.

That figure alone demands attention, but the composition of that revenue arguably matters more than the headline number. Amazon Web Services (AWS) contributed A$4.7bn, dwarfing the A$3.5bn derived from the online store (inclusive of advertising revenue). This split illustrates that Amazon’s competitive footprint in Australia extends well beyond undercutting local retailers on price. It now penetrates cloud infrastructure, enterprise computing, third-party logistics, and fulfilment.

The company’s A$750m robotic-operated fulfilment centre in the outer Brisbane suburb of Logan, due to become fully operational in the near term, signals that Amazon’s ambitions here are structural, not speculative. Robotics-driven warehousing allows Amazon to compress delivery windows and reduce per-unit costs in ways that traditional operators simply cannot match at comparable scale. In our view, the combination of dominant cloud infrastructure, an expanding marketplace, and best-in-class logistics creates a multi-front competitive threat to several ASX-listed companies.

Below, we identify five whose business models warrant closer scrutiny, specifically on whether or not they are up for a fight with Amazon.

Here Are 5 ASX Stocks Threatened By Amazon

1. Kogan (ASX: KGN)

Kogan is arguably the most directly exposed ASX-listed company to Amazon’s expanding marketplace. Founded in 2006 by Ruslan Kogan, the company built its model around discounted consumer electronics and private-label goods sold through its own platform, later expanding into insurance, travel, and financial services. The thesis was that owning the customer relationship and removing bricks-and-mortar overhead would sustain competitive pricing. Amazon’s accelerating growth in Australia tests that thesis meaningfully.

The structural problem for Kogan is that Amazon offers a broader product range, faster fulfilment, and, increasingly, a more trusted brand among Australian shoppers. Kogan has attempted to diversify revenue through its Kogan First membership programme and adjacent verticals, but the core marketplace remains central to group economics.

Amazon’s Queensland fulfilment centre compounds the threat: faster delivery has historically been a key lever that Kogan has used to close the gap with Amazon. As that advantage narrows, pricing discipline becomes more critical, yet margin compression is precisely what intensified competition tends to produce. Kogan’s shares have already de-rated materially from their pandemic-era highs, and we think continued top-line pressure from Amazon’s growth makes a re-rating difficult to sustain in the near term.

2. Temple & Webster (ASX: TPW)

Temple & Webster has delivered one of the more compelling growth stories in Australian e-commerce over the past several years, establishing itself as the dominant online destination for furniture and homewares. The company has invested heavily in AI-powered product discovery, its own-brand product range, and delivery infrastructure tailored to large and bulky items. Those investments have created genuine differentiation, but Amazon’s growing category presence in homewares and furniture warrants monitoring.

Amazon has steadily deepened its offering in the home category globally, and Australia is unlikely to remain an exception. The Queensland fulfilment centre is capable of handling a broader range of product sizes over time, and Amazon’s third-party seller ecosystem allows it to rapidly expand category coverage without holding inventory. What makes Temple & Webster comparatively resilient is its design-forward curation and the complexity of large-item fulfilment, which Amazon has not yet fully cracked domestically. Nevertheless, category overlap is expanding, and any deterioration in traffic acquisition costs or conversion metrics driven by Amazon’s increased advertising presence could pressure margins. We believe Temple & Webster remains well-managed, but the competitive environment is becoming less benign.

3. NextDC (ASX: NXT)

NextDC is Australia’s largest independent data centre operator, owning and leasing co-location facilities across Sydney, Melbourne, Brisbane, Perth, and Canberra. The company has long benefited from strong secular demand for data centre capacity driven by cloud migration and enterprise digitalisation. Therein lies the tension: AWS, the same trend NextDC has ridden, is also its most formidable competitor. Remember that Amazon made $1.2bn more from AWS in Australia than it did from its retail operations.

Also keep in mind that AWS does not merely consume third-party data centre capacity; it builds and operates its own hyperscale facilities. As AWS expands its Australian infrastructure footprint to support its growing domestic cloud business, it increasingly displaces demand that might otherwise flow to independent operators like NextDC. Enterprise customers with significant AWS consumption may find it operationally simpler and commercially attractive to consolidate workloads inside Amazon’s own availability zones rather than maintaining co-location arrangements elsewhere.

NextDC’s competitive response centres on interconnection density and network-neutral positioning, which retain real value for multi-cloud environments. However, as AWS deepens its local presence, the addressable market that NextDC can credibly serve may face incremental compression. The risk is not immediate disruption but a gradual narrowing of the total opportunity.

4. Megaport (ASX: MP1)

Megaport provides software-defined networking infrastructure that allows enterprises to rapidly connect their IT environments to cloud service providers, including AWS, Microsoft Azure, and Google Cloud. The company operates across more than 900 enabled locations globally and has established a meaningful presence in the Asia-Pacific region, where cloud adoption is still maturing. That position sounds well-insulated, but AWS’s own connectivity product, AWS Direct Connect, competes directly with Megaport’s value proposition.

As AWS grows in Australia and enterprises deepen their dependency on the platform, the incentive to use AWS’s native connectivity tools rather than an independent intermediary increases. AWS Direct Connect offers predictable performance and integrated billing within the AWS ecosystem, which simplifies procurement for customers who are already heavily committed to the platform. Megaport’s advantage lies in its cloud-agnostic positioning and the operational flexibility it provides enterprises running multi-cloud strategies. The question, in our view, is whether multi-cloud architectures remain the dominant enterprise preference or whether AWS’s growing Australian footprint encourages greater platform consolidation. If the latter trend accelerates, Megaport faces a more difficult revenue retention environment than its current growth trajectory implies.

5. JB Hi-Fi (ASX: JBH)

JB Hi-Fi is one of the most consistently profitable Australian retailers, with a track record of defending market share through value positioning, knowledgeable staff, and an extensive store network across Australia and New Zealand. The consumer electronics and appliances categories it dominates are precisely the categories where Amazon has historically moved earliest and most aggressively in every market it enters.

Amazon’s Australian electronics and appliance offering has improved materially, and its Prime membership programme strengthens customer retention in ways that loyalty schemes at traditional retailers struggle to match. JB Hi-Fi’s physical stores provide a service and demonstration experience that online channels cannot fully replicate, and the company’s buying scale generates competitive pricing. However, high-ticket discretionary items, including televisions, laptops, and white goods, are increasingly price-compared online before purchase, and Amazon’s growing brand trust places it firmly in that consideration set.

JBH also owns The Good Guys and it faces similar dynamics in appliances. JB Hi-Fi has proven itself a resilient operator, but sustained revenue growth in an environment where Amazon is spending aggressively to capture Australian consumer electronics wallet share is a harder task than its recent results may suggest.