Amazon launches in Australia, offers one-day metro delivery

Amazon landing page

In the early hours of Tuesday, 5 December, Amazon announced the launch of its full Australian online retail operations at Amazon.com.au.

The site reportedly stocks millions of products across more than 20 categories – from consume electronics to clothing, with fast delivery options.

Amazon is offering customers free delivery on eligible orders above $49, and one-day delivery in select areas across Australia.

Amazon expects to launch its ‘Prime’ shipping, shopping and entertainment benefits in Australia in mid-2018, and the company is directing customers to register online for more information.

“Focusing on customers and the long term are key principles in Amazon’s approach to retailing,” said Rocco Braeuniger, Country Manager, Amazon Australia.

“By concentrating on providing a great shopping experience and by constantly innovating on behalf of customers, we hope to earn the trust and the custom of Australian shoppers in the years to come.”

The selection at Amazon.com.au includes products offered by large Australian brands, as well as small and medium-sized Australian businesses selling on Amazon Marketplace.

Customer orders will be fulfilled from Amazon’s new distribution centre in Dandenong South, and Amazon also has corporate offices in Sydney, Melbourne, Perth, Brisbane and Canberra that are home to more than 1,000 employees.

“Over time, we will create thousands of new jobs and invest hundreds of millions of dollars in Australia,” said Braeuniger. “The result will be an ever-improving customer experience driven by the regular introduction of new products and services that we hope customers will love.”

The Australian Financial Review has revealed that shares in Australia-based global delivery logistics software company GetSwift doubled on Friday, 1 December, following the news that it has signed a ‘master services agreement’ with Amazon.

“GetSwift is pleased to announce that it has signed a global master services agreement with Amazon,” GetSwift said in an ASX announcement. “The extent of the services to be provided and the revenues to be derived will be generated from specific transactions agreed with Amazon pursuant to the Master Services Agreement.

“Due to the terms of the agreement the number of deliveries this agreement may generate is currently not determinable.

Australian customers can now also access Prime Video and Twitch Prime, for an introductory price of US$2.99 ($4.00) per month.

Jim Power – consumer sector research analyst at Martin Currie, a division of asset management firm Legg Mason – noted that Australia’s retail sector will cope with the arrival of Amazon.

“While Amazon will have an impact on the Australian retail landscape, based on my discussions with a wide range of market participants in the US, I remain positive of the Australian retail sector.

“My main take away [from meeting US retailers] was that Amazon’s key advantage is that its strategy is driven by data, not gut feel, and the key source of this data is the Marketplace.

“For Amazon’s Marketplace to be successful in Australia, Amazon will need a good product range, including local specialty suppliers. I think this may prove difficult.”