Amazon to launch in Australia?

Australia FlagAmazon is being tipped to launch in Australia in the near future. already exists but only sells kindle and Audible books, it’s yet to stock physical products.

Pundits suggest that Amazon could generate sales of up to $4 billion in Australia which would certainly have a devastating impact on local retailers, especially bricks and mortar businesses with their higher overheads. Amazon Fresh, if launched in Australia, could also impact grocery retailers and supermarkets.

Australians already love Amazon, it’s estimated that they spend somewhere in the region of $500 million to $700 million on Amazon sites. However there’s no local Amazon supply and Amazon have no warehouses… yet.

Doubtless if Amazon start to build warehouse facilities in Australia they’ll open up those warehouses to Fulfilment by Amazon (FBA) and that’s where things start to get really interesting for UK retailers.

Australia is closely aligned with the UK on culture and language and on sites like eBay we already see strong exports to Austrlia (and New Zealand) from British online retailers. If you’re willing to take a punt and ship your goods halfway around the world to place them in Amazon Australia FBA then it’s likely to pay dividends. Definitely the first movers will gain a short term advantage as inventory will be relatively low in the beginning and yet we know just how much of a boost having stock in FBA gives to winning the all important Amazon Buy Box.

An Amazon Australia launch is definitely worth keeping a watching brief on, both for retailers and for the third party multichannel management companies who are likely to see merchants clamouring for support as soon as Amazon start trading in Australia.