Retail

Amazon unveils new Sydney fulfilment centre almost double the size of Melbourne one

Dominic Powell /

Amazon Australia

Companies like Amazon create value for investors through their people, their invented systems and processes, and their physical presence. Jakub Kaczmarczyk

New market entrant and retail giant Amazon has continued the aggressive roll-out of its Australian offering via the opening of a new 43,000 square metre fulfilment centre in Moorebank, Sydney today.

The massive warehouse will aid Amazon’s shipping capabilities down under and provide better access to logistics for both SMEs selling on the platform and consumers. This brings the total number of fulfilment centres in Australia up to two, with the first one being based in Dandenong, Victoria.

“This is an exciting milestone for Amazon in Australia. The Sydney facility in Moorebank will help Amazon ensure that customers enjoy fast and reliable delivery across more areas of the country,” said Amazon director of operations Robert Bruce in a statement.

“The new Sydney centre builds on the capabilities of our first fulfilment centre in Dandenong South in Victoria, and expands our ability to service the growing customer demand.”

Amazon’s new fulfilment centre. Source: Supplied.

Amazon says the new centre will unlock new jobs for the local economy, along with providing SME customers using Amazon’s ‘Fulfilment by Amazon’ services better access to Australian shoppers. Currently, shoppers using Amazon Australia’s Prime offerings can get guaranteed two-day delivery on products if they live in Sydney, Melbourne, Brisbane, Perth, Adelaide, or other qualifying ‘metro areas’.

The company’s roll-out in Australia has constantly been criticised by small businesses and members of the business community, with a small business telling SmartCompany earlier this month they were “sceptical” of the company’s longevity in Australia.

This came in the wake of news that the company posted a $9 million loss in 2017 after launching in December that year.

“From what we’ve seen so far we’re sceptical of [Amazon] working in Australia,” the small business owner said.

“Amazon has been known to be in for the long game, but they’d have to be willing to take losses for potentially 10 years to make it work in Australia.”

At the same time, competing e-retailer and online marketplace eBay has been noticeably ramping up its local offerings, providing SMEs with an array of services, including a new fulfilment service and a Prime-esque eBay Plus offering.

“EBay has the advantage, as it’s been in Australia for 19 years, and there are some significant retailers on eBay. They are trying to cater to those businesses, and stop them from jumping ship to Amazon,” retail analyst and industry expert Scott Kilmartin told SmartCompany at the time.

“EBay has more support for merchants, and if you’ve got warehouses and logistics sorted out, eBay will bring you more customers and more competitive pricing.”

NOW READ: EBay has “all the pieces” to compete with Amazon thanks to new fulfilment services revealed this week

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Dominic Powell

Dominic is the features and profiles editor at SmartCompany.

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