Amazon launches and franchise logistics firms get in on the act

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Inside Franchise Business: Amazon launches and franchise logistics join the partyAmazon has officially launched its full retail and Marketplace offering in Australia and delivery franchises are among those firms benefiting from the internet giant's arrival.

As of today, millions of products in more than 20 categories ranging from clothing, shoes, beauty and homewares, to electronics, tools, toys and sports, are available for purchase on Amazon.com.au.

Internet Retailing reports hundreds of thousands of products are ready to ship from the online retail giant’s 24,000 square metre warehouse in Dandenong South, while thousands of Australian brands and businesses are selling items through Amazon Marketplace.

Until now, the biggest question mark surrounding Amazon was its delivery offering in Australia, with some sceptics wondering whether the retail giant could support free same-day or even two-day delivery nationwide.

Franchised logistics businesses CouriersPlease and Fastway Couriers are both delivering Amazon-ordered goods.

Peter Lipinski, CEO of Fastway Couriers Australia, said while he couldn’t comment on Amazon, Fastway is geared up for the demand.

"This is an exciting time for Australian consumers and we’re proud to working closely with all our customers to facilitate the best delivery experience for their online shoppers.

"Given Australians’ appetite for shopping online, we anticipate an immediate increase in volume."

Lipinksi said Fastway will be supporting franchisees through the demands of the peak period, and delivering for all customers, including Amazon.

"Our courier fleet numbering over 1,000, supported by our Blu Couriers and Parcel Connect agents are ready to deliver, managing the ever increasing Christmas volumes," he said.

Notably absent from today’s launch are Fulfilment by Amazon (FBA), a warehousing and fulfillment solution for Marketplace sellers, and Amazon Prime, a loyalty program that offers members unlimited free shipping on eligible products, video and music streaming services, access to exclusive products, among other benefits.

Amazon Prime is set to launch in mid-2018, while FBA is said to be coming soon.

According to a recent UBS report, the e-commerce giant could steal 2 per cent of retail sales within five years of entering Australia, growing revenues from more than $400 million to about $3.5 billion by 2023.

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