Amazon Scouts For A Warehouse In Australia

Amazon is expanding and has its eye on Australia. The largest online retailer in the world is reportedly looking for a local warehouse in the country as the company plans to expand its global distribution network.

Sources said representatives from Amazon have been in touch with real estate circles to scout for high quality and affordable warehouses. It appears that the company’s expansion plans in the Asia-Pacific region include setting up shop in Australia.

The move is a wise one. Having a distribution centre in Australia would mean significant savings for the company. Amazon would benefit from more efficient deliver times and lower operational expenses especially for customers within the Asia-Pacific region.

The news, however, is causing nervousness among local retailers. Local shops are already feeling the pinch, no thanks to increasing trend of shoppers going online for sales and purchases. Data showed that 10 percent of retail sales come from online.

Sources said that Amazon representatives are likely to visit Australia in the next few months for ocular inspection of prospective warehouses. Amazon would either lease a property or agree to be a pre-committed tenant.

Real estate observers predict that Amazon is likely to look for a property near transport hubs to ensure smooth warehousing and delivery operations. Some of the potential areas include Sydney, Port of Melbourne, and Port Botany.

Amazon made a name for its online book retailing business. Over the years, it has expanded its business by including other products in its offerings like DVD, e-readers (Kindle), video-on demand, among others.

Tagged Amazon, internet, online retail