Amazon says it is bringing retail shopfront service to Australia

Posted April 20, 2017

The confirmation comes on the back of a number of different leaks regarding Amazon have come forth including Amazon shopping for physical locations for their massive warehouses here in Australia, which SMH reported on a year ago.

Amazon, which launched its Kindle store there in 2013, said that it now has 1,000 employees in Australia; many are working for the company's cloud computing unit, Amazon Web Services, which has operated there since 2012.

Amazon confirmed what many have been speculating for the past 12 months, as they announced the launching of their retail services in Australia which could come as soon as July this year.

Amazon's distribution centre is tipped to be in either Melbourne or Sydney.

The company also plans to launch Amazon Marketplace, a sales and logistics system for third-party retailers.

Experts speculate that Amazon's move into the retail space will have a big impact on the likes of Myer, David Jones, JB Hi-Fi and Harvey Norman.

Amazon added that it is "excited to bring thousands of jobs" to Australia and "millions of dollars" in investments to help small Australian businesses.

A banner ad on its Australian website invites Aussie retailers and brand owners to be part of the online selling platform.

Retail NZ spokesman Greg Harford said Amazon's arrival in Australia would be a big issue for New Zealand firms and "put Amazon in a much stronger position especially because they won't pay tax".

Three out of four respondents said they were interested in Amazon Australia and 56 per cent were likely to buy from its Australian site, while 45 per cent say they would subscribe to Amazon Prime to receive special deals, discounts and faster delivery.

Now 50% per of Amazon's revenues come from third-party sellers, some of whom pay the e-tailer commissions and fees to store and deliver their goods under a service called Fulfilment by Amazon, which has been growing at 70% a year.

Amazon is also understood to be in talks with Australian logistics partners.