Amazon is stepping up its global expansion by entering the Australian market and has expanded Prime Now deliveries in Japan.
The US e-commerce giant announced today that it plans to spend millions of dollars investing in the new ‘Amazon Australia Marketplace’ and promised to create “thousands of new jobs” amid an economic slowdown in the country.
The company indicated its Australian business model will mirror those in North America and Europe. “We are optimistic that by focusing on the things we believe customers value most — low prices, vast selection and fast delivery — over time we’ll earn the business of Australian customers.”
According to media reports, Amazon is now looking for a suitable site in Brisbane, Sydney or Melbourne for a giant 93,000 sqm fulfilment centre where it would hold stock and use as a distribution basis for deliveries to Australian customers. The East Coast centre would be the first of several warehouses across the country.
“Sales through Amazon Marketplaces now represent 50% of all items sold on Amazon websites globally. There are already thousands of Australian businesses selling their products on existing Amazon Marketplaces. We are excited to bring the Amazon Marketplace to Australia next.
“Whether your business is new or you are looking to grow your sales, Amazon can provide you with an e-commerce solution to meet your needs. Become a seller on the Amazon Australia Marketplace and put Amazon's e-commerce expertise to work for your business,” the company told prospective sellers in a website posting.
Separately, in Japan, its biggest market in Asia, Amazon has expanded its Prime Now same-day delivery service to include cooked meals, medicine and other urgent goods.
The company has teamed up with retailer Mitsukoshi to offer rapid deliveries from its flagship store in Tokyo’s Nihonbashi district, and with pharmacy chains Cocokara Fine Inc and Matsumotokiyoshi Holdings for one-hour deliveries.
Jasper Chang, president of Amazon Japan Limited, said: "We are extremely pleased that we have expanded the range of Prime Now products with the cooperation of alliance partners. We will offer popular cosmetics and beauty items, high quality dishes and Japanese confectionery through Prime Now. We will be able to deliver it on the day of order at designated times.”
The Prime Now service, available in Tokyo, Osaka and other selected areas since November 2015, uses a different delivery operation than the standard same-day delivery service provided by Yamato, an Amazon Japan spokeswoman told the Japan Times.
Yamato has said it is considering pulling out of same-day deliveries for Amazon due to the heavy workload on its drivers, especially involving frequent attempts to deliver parcels to residents who are not at home.
Meanwhile, Amazon is reportedly looking for a dramatic 1,300 warehouse units across Europe to fulfil its commitments for its one-hour Prime Now delivery service, according to British newspaper The Daily Telegraph. The online retailer is understood to be seeking small warehouse units in urban locations near major cities to speed up delivery times, it wrote.
