Amazon.com, Inc. (NASDAQ:AMZN) is expanding its presence in Australia to tap the market. The company is planning to offer retailing business five years after the company launched its Amazon Web Services (AWS) in 2012 and Kindle Store in 2013. Now, the company is trying to establish fulfillment center though the location is narrowed to Melbourne or Sydney or Brisbane if reports are to be believed.
Amazon does not want to depend heavily on the domestic circuit and is keen to expand its presence throughout the globe with its varied offerings. According to The Sydney Morning Herald, the company is looking for about 93,000 square meters space or about five MCGs. The company, which has more than 1,000 workforce in Australia, is likely to commence hiring people to take care of the Australian market development in the upcoming years.
The company indicated its commitment to the market by investing additionally in Australia, which would also generate fresh jobs locally. However, it would be a tough task for rivals since the company will offer low prices, quick delivery and a big selection. The online retailer will learn the customers’ preference in Australia over a period of time.
Though Amazon has not disclosed any time table for its retail business, its one-hour delivery concept will also be unveiled in Australia through its Amazon Prime. While earlier reports suggested rolling out in September, the latest report indicates that retail offering could come sooner than expected.
The company has been generating $1 billion sales revenue from Australia with shipping from outside while the total annual retail sales are estimated at $300 billion. That suggested plenty of opportunities for the biggest online retailer. The company could focus on home electronics and consumer in Australia initially. Interestingly, majority of the Australians told a research firm that they would prefer to buy from Amazon when the company operates from Australia.
On Wednesday, the stock shed 0.51 percent.