Amazon Australia takes next step, offering small businesses access to its delivery services

Amazon Australia will roll out a key fulfilment product this week, offering businesses on the Marketplace platform the chance to use the retail giant’s own logistics services to ship products to customers.

The company confirmed that from today, Australian businesses selling through the platform will be able to access “Fulfilment by Amazon”, the retail giant’s logistics service for picking, packing and sending of goods that are sold by third parties.

Head of Fulfilment By Amazon Australia Amit Mahto says there will be no restrictions on the size of the business that will be able to send stock to the logistics centre for picking and packing.

“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,” Mahto says.

Amazon says the service will be attractive for businesses because by signing up to its logistics network, smaller operators using Marketplace will be able to offer their customers free delivery on orders above $49, as well as expedited delivery in line with Amazon’s product offer in Australia.

The retail giant says it can now provide a one-of-a-kind offer to other Australian businesses, because they have the option of supplying their own stock but making Amazon responsible for all picking, packing, customer service, shipping and returns.

SmartCompany understands sellers will be charged a fulfilment fee for postage of each item by Amazon, as well as a storage fee charged by the cubic metre of up to $26.50 per month. Storage fees will vary depending on the time of year companies choose to store stock with Amazon.

Experts have previously highlighted delivery times as a key factor in the success of Australian retailers, with Amazon known for its commitment to incredibly speedy service in other markets.

However, when it comes to delivery windows, other Australian retailers have demonstrated they already have time commitments that are in line with or significantly ahead of Amazon’s current offer. In January, Amazon reported 5,000 sellers had come onto the Marketplace platform since the company’s launch in Australia in December.

Marketplace sellers pay $49.95 to use the platform, plus a commission of between six and fifteen percent on sales.

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