To date Amazon has only offered its Kindle and AWS services
to the Australian market, however that is soon about to change as Amazon
prepares to launch its full range of retail services in Australia by late this
year or early 2018. Amazon recently released this statement, “Amazon Web
Services launched an Australian region in 2012, we launched a Kindle Store on
Amazon.com.au in 2013, and we now have almost 1,000 employees in the country.
The next step is to bring a retail offering to Australia, and we are making
those plans now. We are excited to bring thousands of new jobs to Australia,
millions of dollars in additional investment, and to empower small Australian
businesses through Amazon Marketplace. We are optimistic that by focusing on
the things we believe customers value most – low prices, vast selection, and
fast delivery – over time we’ll earn the business of Australian customers.”
Here are some facts and figures that B2BGateway has
uncovered regarding Amazon offering full retail services in the Australian
Marketplace
·
Amazon,
the US headquartered online retail giant is actively looking for a warehouse to
become a fulfillment centre, the first of many in Australia, with floor space
of up to 93,000 square metres.
·
Based
on its track record in other countries, Amazon will spend hundreds of millions
of dollars over the next few years to establish its services in Australia.
·
In Australia, Amazon is already selling
entertainment, including ebooks and Amazon Prime streaming of television series
and movies. The next stage is local ordering and local delivery of goods from
and within Australia.
·
The initial focus for Australia will be consumer and
home electronics — the market currently dominated by JB Hi-Fi and Harvey Norman
— the type of goods which can be held without spoilage and can easily be
shifted to a consumer in a box.
·
First, and most obviously, Amazon is going to take a
gigantic bite out of local retail revenues. One analyst briefed by Amazon’s
management team last year told news.com.au that Australia’s high prices were
the main reason for its entry into this country.
·
The combination of lower prices and the attraction
of Amazon’s efficient delivery model already sees Australians spend about $1
billion a year at Amazon. But that figure is expected to quadruple over the next
five years as Amazon grows its local presence and cheaper delivery costs. Those
$3bn in additional sales have to come at the cost of existing retailers and as
the expected September launch date for Amazon’s local delivery approaches,
every major retailer in the country is, as we speak, preparing to lose market
share while talking tough in the local media.
As an EDI provider,
B2BGateway has been helping Amazon
vendors automate their supply chain processes for many
years. B2BGateway supports Amazon vendors in all categories including Amazon
Vendor Central, Amazon Seller Central and a variety of country specific sites.
If you would like to know more on how B2BGateway can help your organization be
ready for the Amazon revolution in Australia please email Sales@B2BGateway.Net or call +61 28003 7584
