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.
- 56% of Australian adults told Nielsen in February they will buy from Amazon when it lands.
- 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