US retail giant opens new Aussie store
Amazon is expanding its massive footprint in Australia, to business supplies.
Amazon Business opened an Australian site on Wednesday morning, the retailer's eleventh country-specific business wholesale store.
Questioned about taking on retailers such as Officeworks, Amazon Australia executive Lena Zak told NewsWire: 'We've invested in our selection, we've invested in our delivery processes and customers are getting deliveries as fast as the same day'.
'We are really customer-focused, not competitor-focused … We really believe that now is the time to launch for (business-to-business) customers, who we feel have been under-served by the procurement processes that we have in Australia.' Amazon's current infrastructure, like Sydney's Kemps Creek warehouse, can sustain the new business site and sales, executive Lena Zak tells NewsWire. NewsWire / Nikki Short Credit: News Corp Australia
Amazon Business offers wholesale rates and 'eligible' businesses can consolidate their purchases and tax invoices in one place.
Amazon does not disclose what exactly makes a business eligible other than being 'legitimate'.
Amazon Australia's growth marketing boss, Ms Zak, told NewsWire the company's existing courier network could handle the new business customers.
The business arm of the retail giant sells millions of items. Beyond pens and desk chairs, there are cleaning supplies, trades equipment, cookery and first aid.
'They're also buying nappies and formula, and toys, and the list goes on,' Ms Zak said of business customers, such as day care centres.
'Without Amazon Business, they may have had to visit multiple stores to get everything they need … with this launch, they can get all of that in one place, delivered fast and free and with exclusive discounts.' Amazon uses a network of 20 different courier companies in Australia. NewsWire / Ian Currie Credit: News Corp Australia
Ten other countries have a dedicated Amazon Business store, namely Canada, France, Germany, India, Italy, Japan, Mexico, Spain, the UK and the US.
Touting independent research from YouGov, Amazon says 78 per cent of small and medium businesses have made cost-cuttings in the past three years, signalling room in the market for Amazon's massive product range and member discounts.
The general platform allows small businesses to sell their products; in total, 14,000 Australian businesses sell their wares on Amazon, Ms Zak said.
'So for those sellers on our side, we're now giving them access to a whole new customer base to continue growing their businesses'
In the US, the retail giant is trying to make inroads in another lucrative market – groceries.
Consumers can pay US$99.99 a year on top of their Prime subscriptions to get groceries delivered.
Mexican and British grocery chains have signed similar deals with the retailer.
Ms Zak and other spokespeople for Amazon said there were plans for Australian grocery deliveries.
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