Online retail giant ramps up products, launches warehouse and distribution network

AUSSIE shoppers were underwhelmed by Amazon’s much-hyped local roll-out last year, but experts say the e-commerce giant is looking dangerous.

The greatest assortment growth was in electronics. Picture: iStock

AFTER months of fevered speculation, Amazon eventually launched with a whimper in Australia in December.

But just two months after that lacklustre beginning, the online retail powerhouse seems to be unleashing a second wave of attacks on the country’s struggling retail industry.

From today, thousands of businesses registered to sell on Amazon’s Australian Marketplace can access Fulfilment by Amazon (FBA).

Companies are now able to store their products in a massive warehouse in Dandenong South in Victoria, and have their customers’ orders packed and delivered by Amazon.

According to Amazon, businesses can now simply send the products they wish to ship through FBA to its fulfilment centre and when a customer places an order, Amazon will pick, pack and ship the product on behalf of the business, saving both time and money for sellers.

Amazon also handles all customer returns.

• ‘HOW ALDI MADE US MILLIONS’

• LINGERIE MODELS HELPING PUTIN WIN POLL

• JOB MOST LIKELY TO CAUSE DIVORCE

Customers can also take advantage of free delivery on eligible orders above $49, and other shipping options including a one-day expedited delivery service available in select areas across Australia.

“Size doesn’t matter in the digital economy and Amazon Marketplace helps to level the playing field when it comes to starting or growing a business,” said Amazon Australia’s head of FBA Mr Amit Mahto.

“We are focused on helping Australian businesses of all sizes succeed by inventing on their behalf and making our technology available to them and FBA is a fantastic example of this,” he said.

The FBA launch follows news that Amazon has rapidly increased the amount of items on sale for Australian shoppers, with tens of millions of items now available.

According to The Australian, Amazon has focused on consumer electronics and toys, while homewares is believed to be Amazon’s next target.

However, Queensland University of Technology retail expert Dr Gary Mortimer said there was no cause for Aussie retailers to panic just yet.

“It looks like Amazon are slowly increasing their proportion of products available through their website, in other words they are recruiting more small businesses into the Amazon fold, which is good for small businesses that may not have a strong online platform — they can certainly use Amazon’s global reach to get their products through the Amazon system out to new markets,” he said.

“But I think despite the increased proportion of products available, we must remember that’s coming off a low base after just entering the market.

“At the end of the day ... the proportion of total online shopping as opposed to in-store still remains in Australia less than eight per cent. While Macquarie research has predicted that to grow to 12.5 per cent by 2025, it’s still a long way away from parity with bricks and mortar retailing.”

Dr Mortimer warned that certain sectors such as automotive, toys, sporting goods and consumer electronics were more vulnerable to Amazon domination as those items were more easily purchased online.

However, he said shoppers still enjoyed the experience of going into stores, supermarkets and shopping centres

“I still don’t believe this signals the death of bricks and mortar retailing.”

Amazon Australia’s next focus will be the launch of Amazon Prime in mid-2018.

[e-mail]