Amazon’s Latest Lure for More Sellers

By Peter Krideras | 27 Feb 2018

Amazon has gone into second gear of its Australian launch in an attempt to lure more sellers to its marketplace. From Tuesday, Australian businesses listed on its local marketplace will be able to access its third party logistics arm – Fulfilment by Amazon.

Australian retailers listed on Amazon’s local marketplace can now tap into Amazon’s logistics and delivery business, Fulfilment by Amazon (FBA). Amazon local sellers now have access to its 24,000 square meter warehouse in Melbourne’s Dandenong South, where their orders will be packed up and shipped by Amazon.

Amazon says FBA will benefit sellers by saving time and money and assist with customer convenience of faster delivery.

How it works?

When a customer places an order on Amazon Australia’s marketplace, businesses send the products they wish to ship through FBA to Amazon’s fulfilment centre and Amazon will pick, pack and ship the product on behalf of the seller. Businesses that participate in FBA will also have access to Amazon’s customer service, including Amazon handling customer returns.

Sellers who use FBA will be hit by a storage charge of $19.40 per cubic metre for the majority of the year, with the peak Christmas period from October to December billed at higher rate of $26.50 per square metre.

Each order that Amazon fulfils for a seller will cost $1.76 for a small envelope-sized order and up to $25.48 for bigger orders weighing up to 30 kilograms. There are other costs and charges associated with packing, relative to each parcel size.

For the customer, orders above $49 will qualify for free delivery with other options like one-day delivery service available in select areas.

Third Gear – Prime

Amazon is going to kick into third gear in the middle of this year with the launch of Prime, its loyalty membership program, which means that all FBA orders will also be eligible for the Prime shipping benefits.

FBA’s Australian head Amit Mahto says that with FBA, Amazon is aiming to level the playing field when it comes to starting or growing a business in Australia. In an attempt to entice more sellers to its Australian marketplace, Amazon is running an introductory promotion giving sellers access to free storage and removals if they sign up in March, until 31 August 2018, with volume limits and other conditions that apply.

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