Amazon Australia starts with FbA

Amazon increased its service offering to merchants in Australia by starting with the Fulfilment by Amazon (FbA) program in Australia. Local businesses selling through Amazon Marketplace will now be able to have their goods stored and delivered by the US online retailer. As the marketplace debuted in early December, it was only a matter of time before Amazon increased its services to merchants.

The service becomes available this week. It means (Australian) companies can store products at the Amazon warehouse in Dandenong South, south-east of Melbourne, and have their orders picked, packed and shipped by Amazon.

According to Amit Mahto, Head of Amazon Australia FbA, "Amazon focuses on helping Australian businesses of all sizes succeed by inventing on their behalf and making our technology available to them. FbA is a fantastic example of this. Customers shopping on amazon.com.au will be able to access an ever growing and more unique range of products accompanied by the convenience of fast delivery and Amazon's world-class customer service."

Amazon will charge third-party sellers fees starting from $1.76 to fulfill a small envelope order and up to $25.48 for a much bigger order weighing up to 30 kgs. It will cost $7.76 to pick, pack and despatch an order weighing up to three kilos. For comparison, Australia Post would cost $8.50 to send a parcel that size anywhere in Australia.

Another service to come to Amazon Australia is Prime, an annual membership with free two-day shipping and other benefits. This is expected mid-2018. It costs $US99 a year in the US, where it has an estimated 90 million subscribers, and it is key to Amazon’s strategy for dominance in retailing.