Amazon Expands Operations in Australia and Has Plans for A Huge Warehouse
The giant retail firm, Amazon, is searching for a site in Melbourne, Sydney, or Brisbane to set up its first fulfillment center in Australia.
Amazon is seeking to expand its operations across Australia and it has announced plans to set up one of the proposed warehouses on the eastern coast. The warehouse will guarantee faster deliveries across the country. The firm announced this plan after a lot of anticipation.
According to the Business Insider, Amazon is searching for a space to set up a warehouse either in Melbourne, Sydney or Brisbane to be its first Australian fulfillment center, measuring 93,000 square meters.
Amazon launched its web services in Australia in 2012. In 2013, the company launched its Kindle store found on amazon.com.au and as of now, the company has approximately 1,000 workers in Australia. The company’s next plan is bringing a retail chain offering in the country and those plans are underway.
The proposed warehouse will generate hundreds of new jobs. Amazon said it is very excited to create new jobs in Australia, bring in investments worth millions of dollars and empower small businesses in the country through the Amazon Marketplace.
The company is optimistic that through focusing on aspects that are of most value to customers such as fast delivery, wide selection, and low prices, it will be able to attract Australian customers. The company expects to introduce services that made it dominate the retail Western Europe, UK and US markets, like delivery within an hour, to the Australian market soon.
Morgan Stanley analysts have painted Amazon as a “country killer” and warn its retail consumers that although the company might take some time to create and build momentum in Australia, it hangs like Damocles’ sword over corporate Australia. This warning was published prior to Thursday’s announcement in the Australian.
The analysts also stated the country now accounts for around $1bn of the $300bn annual retails sales in Australia. The company intends to start is launch with electronics, a move expected to take away some from profits from Harvey Norman and JB Hi-Fi that made annual revenues of $1.8bn and $3.9bn respectively during the 2015-2016 financial year.
A tax plan that is designed to assist brick and mortar retailers like Harvey Norman has already been criticized by Amazon, saying that the move to impose a tax on goods and services purchased online was poorly designed such that it might create a rather inherent disincentive for online retail businesses to comply.
Amazon, in a submission to the parliamentary committee overseeing hearings on the proposed tax law, said that while compliant electronic sellers and distribution outlets will charge some GST, the non-compliant electronic sellers and distributors will have a chance of shipping parcels to the country at more attractive prices to consumers with relatively low risk of being detected.
Amazon added that such a move will incentivize consumers to make purchases from less reputable vendors located overseas at an increased risk.