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Amazon to launch in Australia?

By Chris Dawson September 26, 2016 - 12:12 pm

Australia FlagAmazon is being tipped to launch in Australia in the near future. Amazon.com.au 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.

  • Bryn
    10 months ago

    As always with FBA its tax issues which cause the biggest headache.

    • glenn
      10 months ago

      with australia being relatively close to china , the chinese vat fiddlers will no doubt swamp the market with container loads of fba straight away

  • glenn
    10 months ago

    im suprised amazon are not already selling there , i knows its only a small population of 20million compared with usa/europe , maybe thats the reason its taken this long

  • Matt
    10 months ago

    Attended an Amazon briefing session last month in Sydney and their Official,answer to are they opening in AU was that they had no plans at this stage to offer physical products because they are committed to 2 day shipping via FBA and that was logistically very challenging in Australia. Of course this may not be correct and the guy speaking may not know all the facts but if they had decided to,do it you would think they would be publicising it.

  • SAM
    10 months ago

    Oh no there goes that market then, OZ is great for us. Amazon will just put another load of small sellers out of business also. Can you imagine the build international listings fees for OZ, 99% to Amazon. ebay.au will also take a hammering
    Been a GEM for years OZ. Like to see them get a PRIME delivery to the outback next day.

    • james
      10 months ago

      funny you should mention the drones, i think that may be at the back of amazon’s mind going to oz; even the GP is air-lifted in.

      perhaps not the same standard of drone, the range would be useless, but as an aviation testground (testsky?), oz may be a winner.

  • Kiri
    10 months ago

    “Amazon is being tipped to launch in Australia in the near future.” Is there a source for this or purely speculation?

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