Amazon expands its website in Australia

20 April, 2017, 06:42 | Author: Eloise Marshall
  • Amazon’s logistics center in San Fernando de Henares near Madrid. Gerard Julien  AFP  Getty Images

In a statement to the press this morning, Amazon announced that they were looking forward to bringing "low prices, vast selection, and fast delivery" to more Australians over the coming years.

The global retail giant has confirmed it will be making its way to Australian shores, making good on months of speculation and and hot takes from Australian media outlets.

Amazon Founder Jeff Bezos aims to expand his retail services to the Australian market.

The Australian operation would be the company's fourth Amazon Marketplace in Asia after China, Japan and India and its 12th globally.

A study by Morgan Stanley suggests that Amazon's progression into capturing the market will be quick, as they believe that Amazon will achieve more than 5% of the Australian market share within five years of entering the market. "Even the biggest firms in New Zealand lack scale and that makes price something that needs to be kept down".

A spokesperson for the retail giant stated via email that Amazon is now planning "to bring thousands of new jobs to Australia, millions of dollars in additional investment, and to empower small Australian businesses through Amazon Marketplace".

But the impact on existing retailers such as Myer, JB Hi-Fi and Harvey Norman is expected to be large.

According to an story from Business Insider (which is published by Allure Media, Kotaku Australia's owner), Amazon is actively looking for its first Australian warehouse with around 93,000m of space. "We are excited to bring the Amazon Marketplace to Australia next", a banner on its Australian website reads.

The proposed new warehouse will create several hundred new jobs.

The company already has a presence in Australia, setting up Amazon Web Services in 2012 and its Kindle store in 2013.

However, Harford has acknowledged the removal of the GST advantage could encourage Amazon to build a fulfillment centre in New Zealand.


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