Amazon unveils plans for Australia

Amazon launches in Australia
Amazon has outlined plans for its launch in Australia to more than 500 potential customers at its first marketplace summit in Sydney.

The company says its logistic warehouses are now operational and ready to deliver goods.

Australian country manager Rocco Braeuniger has not spelled out exactly when the retail giant will launch in Australia, saying only it will be “really soon.”

“Let me tell you we are getting really, really really close,” Mr Brauniger said.

Citi analysts expect Amazon will launch ahead of Black Friday on November 24.

Mr Braeuniger said Amazon will “not sacrifice long term success for short term gains”.

Amazon will use a similar strategy for its rollout to the one used in Spain with Amazon launching several categories and services simultaneously and gradually adding more categories and features over time.

“We want to do the very same here,” Mr Braeuniger told the summit.

“We’ll bring thousands of jobs to Australia, we’ll invest millions of dollars and help sellers grow their businesses and be successful.”

“We have long term ambitions to be successful and earn the trust of the Australian customer in the long term.”

Amazon will be selling products using two models.

First, it will be selling products out of its own warehouse. Under the direct retail model, Amazon sets prices, deals with customers and delivers orders.

And it will be selling from third parties through its Marketplace. Under that model, other companies use the platform to sell their goods but set their own prices and are responsible for shipping orders.

Selling on Amazon Australia marketplace reportedly costs $49.95 per month, plus six to 15 per cent of completed sales

About half the products Amazon sells globally are through its Marketplace model and thousands of Australian sellers have already registered to sell on Marketplace.

Two billion products have been sold through MarketPlace in the first half of 2017.


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