Amazon Australia to open new fulfillment centre in Sydney

By

Benjamin Fitzgerald

Published
May 3, 2018

US e-commerce giant Amazon is strengthening its position in Australia with plans to open a second distribution in the nation, this time in Sydney, to complement its debut Melbourne warehouse.

Located in the suburb of Moorebank, in Sydney's south west, the distribution centre will span 43,000 square metres and will be housed in the Goodman Centenary Distribution Centre.

It is slated to open in the second half of 2018.

The opening follows Amazon's Australia fulfilment centre debut in Melbourne's Dandenong South in December 2017, and will be Amazon's largest centre in Australia to date.

"This new facility builds on the capabilities of our first centre in Dandenong South, allowing us to continue to fulfil our commitment to fast and reliable deliveries for Australian customers,” Robert Bruce, Amazon Australia Operations Director, told local media.

“This investment will benefit both customers and the local economy by generating new jobs and providing small and medium sized Australian businesses who sell on amazon.com.au and use our Fulfilment by Amazon program, with an opportunity to more easily access millions of customers across the country.”

The online retailer added that it will begin recruiting immediately for a range of roles including operations, support and technical specialists.

Since making its Australia debut last December, Amazon Australia has faced competition headwinds due to its uncompetitive pricing and lack of offering, a claim made by many consumers in its opening months during the crucial Holiday period.

Adding to its woes, Australia Post has so far struggled to meet Amazon’s shipping time estimates in regional parts of the massive country.

However, in a sign that Amazon trusts the efficiencies of the government postal service, the firm in February launched its signature delivery business for third-party sellers; a move that would see it pack and ship products on behalf of Australian merchants through its new Fulfillment by Amazon program, something the new Sydney centre looks to help accomplish.

With the launch, Amazon also said it aims to kick-start its fast-shipping club Prime for shoppers by mid-2018.