Amazon is nearly ready to launch in Australia.
Amazon’s market entry into Australia has begun with the company announcing it is recruiting “hundreds” of staff for its first fulfillment centre, in South Melbourne.
Australian operations director Robert Bruce said the US retail giant would stock “hundreds of thousands of products” at the fulfillment centre – which at 24,000 square metres is about the size of three rugby pitches – and use it to supply customers across Australia.
“We will be focusing on offering our Australian customers low prices on a great selection of products and can’t wait to get started,” he said.
An Amazon spokeswoman said recruiting had begun but the company had not revealed an opening date.
Information gathered by shipping company MWPVL International suggests that the Melbourne fulfillment centre is about three-quarter’s of the average size for its warehouses, hubs and sorting centres.
Globally, Amazon has 400 facilities with a total footprint of 144 million square-feet, it estimates.
Amazon has declined to say whether it would also supply Kiwi consumers from Australia, which might mean lower delivery costs and shorter shipping times.
A report from broker Forsyth Barr said that if Amazon did that, it could help the company build a business with annual sales of between $122 million and $548m in New Zealand within five years.
But it would be a “logical extension” for Amazon to move directly into New Zealand, open a fulfillment centre here and offer Kiwi consumers its premium Amazon Prime subscription service which provides free two-day delivery, Forsyth Barr said.
That could see it build a business here worth $915m within five years, it said.
Overseas, Amazon bundles Amazon Prime with an internet TV offering, Prime Video, which it has launched as a separate service in New Zealand.
Forsyth Barr speculated Amazon might outbid Sky Television for streaming rights to All Blacks matches and Super Rugby, if it did launch in New Zealand, to give Amazon Prime a boost.
However, there is also speculation Sky and Amazon might strike up a partnership that would see Sky on-sell internet-streaming rights to the rugby while retaining its satellite and free-to-air broadcast rights.
Sky TV spokeswoman Kirsty Way said it was too early to comment on any such scenarios. Amazon has been approached for comment.
– Stuff