Amazon Australia's launch may have been exaggerated, but Jeff Bezos' empire is getting closer to opening every day. Now, a new report shows that Amazon has purchased a large chunk of land in Sydney's south-west with plans to turn the site into a "network operations and data centre".
We reported earlier in the month that Amazon's first fulfillment centre, in Melbourne's Dandenong South, was operational. Ahead of Amazon's launch, which we're expecting some time 'really soon', the company has spent $7 million acquiring 2.11 hectares of land in Sydney's Smeaton Grange, according to a report by Fairfax.
Early speculation suggests that the site may be developed into a second fulfillment centre, which would allow speedier delivery to Sydney and its surrounding region.
Amazon is less than a day away from launching their online retail service in Australia with a soft launch set for tomorrow afternoon. This means that you will soon be able to buy everything from food to electronics without paying exorbitant international shipping fees. As the launch inches closer, more and more questions are being answered about Amazon’s arrival in the Great Southern Land.
We’ve rounded up everything you need to know.
One of the big keys to Amazon's success is how efficient its distribution and logistics platform is. At present, Amazon in the US operates over 230 fulfillment centres across 26 states. Australia, being a similar sized land mass as the US but with more condensed population centres, should enable the online retail giant to use a similar distribution network to ensure consumers receive products in a timely manner.
However, when Amazon opens in Australia, it will be shipping products purely from the Melbourne fulfillment centre. This could cause issues with the western states and regional centres, who may experience delays in shipping. Amazon are renowned for their two-day delivery standard, but if we get the short end of the stick Down Under, consumers will go elsewhere.
Opening up a second fulfillment centre in the country's most populous city will at least ease some of that burden in the coming years.
Last week, Amazon began quietly listing products on its Australian website. The other day, pricing information also began to appear.
While you can't actually buy anything yet, the available listings give a pretty good indication of what Amazon will be charging for PC, camera and audio products. So how do the prices compare to JB Hi-Fi? Let's take a look.
With such a heavy focus on cheap, speedy deliveries, Amazon's Australian distribution network is going to need to be dotted across the country side. Eventually the company will need to be offering their products from Albany to Zeehan so they'll need a robust product distribution network that can handle travelling state to state in a matter of days.
This cannot be achieved with a single fulfillment centre, so it wouldn't surprise me to see Amazon looking at more and more sites in the coming year to shore up that network and ensure Australian consumers aren't turned off by sub-par delivery times.
It's especially pertinent in the wake of major retailers like JB Hi-Fi offering same-day and three-hour delivery, something that Amazon Australia will surely lack upon launch.
With the news that Amazon will be storming the online-retail-gates of Australia this week, it seems JB Hi-Fi has got on the front foot and unveiled their new speedy delivery options for online customers. These new options will allow items to be delivered same day or, in some circumstances, within three hours.