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How Amazon Australia will affect existing supply chains

Amazon’s entry into the Australian retail next year is already hitting retailers hard. But it is not just bricks and mortar stores that will be hurt. The goods Amazon will be shipping, either from their own warehouses or from resellers, will need to get to customers.

That means warehouses, planes and trucks will be needed – and it will put entire supply chains and logistics providers under new pressure. Couriers Please’s COO, Ms Hoy Yen Hooper, points out that Australia’s geography and population distribution is far different to that of the US, Amazon’s home market. That means the company will need to create relationships with local logistics providers. To cover those distances, Ms Hooper says it is likely Amazon will negotiate with some key players in the market to support their Australian efforts.

That will mean scanning the market to find a small number of key providers to assist them with getting goods across the country. Otherwise, chances are Amazon may look to build their own distribution network. For local logistics companies, Ms Hooper says there is no doubt there will be opportunities that come from Amazon’s retail entry.

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