Amazon Says It Will Bring 'Retail Offering' To Australia

Inc. Go grocery store in Seattle Washington

Inc. Go grocery store in Seattle Washington

Amazon has broken its silence over an impending move to Australian shores, which is expected to shake up competition among domestic retailers.

One of the world's largest e-commerce companies, Amazon, has finally broken its silence on its plans to enter the Australian market further, releasing a statement about setting up shop here over the next few years, with promises to Australian consumers, such as cheaper prices, speedier delivery times and access to a greater range of products, which will include groceries. A statement confirmed that Amazon is now ready to take the "next step to bring a retail offering to Australia, and we are making those plans now".

The idea of expanding Amazon Marketplace and small businesses in Australia is a mutually beneficial element of the way the company's business is set up, allowing these companies to sell items through the retailer, while Amazon nets a percentage of the sales.

Weber Shandwick's Laura Manninen told The New Daily that Amazon was actively looking for a "fulfilment centre" in Australia.

Shoppers can sign up to these businesses, which provide an intermediary USA address, from which the item will be forwarded to Australia.

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To support its new operations, the online giant is also shopping for warehouse space - a 93,000 square m (Australian) depot - in Brisbane, Sydney or Melbourne, according to Business Insider Australia. To skirt around the billing problems, Australian shoppers pay the intermediary business, which then pays Amazon on the shopper's behalf.

While Amazon is rumoured to land in September, some web services could go live as early as July.

Last month a Credit Suisse analyst warned that retailers such as Myer, Harvey Norman, JB Hi-Fi, Supercheap Auto, Rebel and Amart Sports, BigW, Kmart and Target would be hardest hit by Amazon's arrival, adding that the online retailer was likely to reach 5% market share within five years.

Though it appears to send a shiver through Australian retailers, the company said it is excited to empower small Australian businesses via the Amazon Marketplace, in which small players can sell their wares on the company.