Announcing the launch of its Fulfilment by Amazon (FBA) service for its Australian Marketplace, Amazon claimed the service makes it easier for smaller retailers to access a much wider customer base.
“Size doesn’t matter in the digital economy and Amazon Marketplace helps to level the playing field when it comes to starting or growing a business,” said Amit Mahto, head of FBA in Australia.
FBA claims to allow businesses to send the products they wish to sell to Amazon’s fulfilment centre. When an order is placed, Amazon then packs and ships the product on the seller’s behalf, and offers the customers Amazon’s customer care and delivery options.
“With the help of FBA, we’ve been able to enter countries, including the US and the UK, which we could have never done on our own,” Kevin Lippy, founder of the Sydney-based Hip Cub, explained.
“Fulfilment by Amazon really changed the game for us, and we’re thrilled it is now launching in Australia. FBA has allowed us to concentrate on the things we’re good at such as digital marketing and product development, leaving the logistics such as packing and delivery to Amazon.”
Amazon said its Prime service, a subscription membership service offering free same-day delivery on purchases, will also launch in Australia mid-year.
The global online retailer launched in Australia late last year, however its much-hyped arrival was labelled “a major flop” by consumers, amid complaints of poor product offering and prices in some instances above those available in-store at other retailers.