Amazon opens its warehouse and distribution network to Australian third-party businesses

Amazon.com Inc confirmed on Tuesday the launch of its delivery business for third-party sellers in Australia. This means smaller operators will be able to offer customers free delivery on orders above $49 as well as expedited delivery.

The company said that through the platform, Australian businesses will be able to access “Fulfilment by Amazon,” its logistics service for the delivery of goods sold by third parties.

There will be no restrictions on the size of the business allowed to send stock for picking and packing, according to Amit Mahto, Head of Fulfilment by Amazon Australia. The retail giant believes the service will appeal to businesses as operators using Marketplace will be able to offer faster and free delivery on some items by signing up to its logistics network.

Mahto said that size does not matter in the digital economy and that Amazon Marketplace helps level the playing field when it comes to starting or growing a business. The program will benefit customers with free delivery on eligible orders above $49 and a one-day expedited delivery service available in select areas across Australia.

Small businesses can opt to store their products at Amazon's Dandenong warehouse. This option will reduce business overheads for storage and security.

Mahto said the company is focused on helping local businesses by inventing on their behalf and making its technology, like the FBA, available to them. He added that customers shopping on Amazon.com.au can have an access to an ever-growing and more unique range of products with the convenience of fast delivery and Amazon’s service.

Fabio Bertola, country leader for Amazon Marketplace, earlier said that FBA helped sellers build scale without the need to invest in costly infrastructure."We're sure Australian sellers will love FBA," the Financial Review quotes him as saying.

The program’s launch comes less than three months after the unveiling of Amazon’s new suite of retail products and services. Over 140,000 small businesses utilising Amazon's marketplace exceeded $100,000 in sales last year.

Globally, approximately half of Amazon’s total units sold come from Marketplace sellers. There is a flat fee in Australia, which is expected to depend on the product type, dimension and weight.

Australians also have the option to sign up to Amazon Prime when it goes live in mid-2018. Products sold through FBA will be eligible for Amazon Prime's fast shipping. Amazon Prime is the company's premium fast-delivery service.