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Today, Australia will join the ranks of the sixteen countries from around the globe that currently enjoy close proximity to Amazon Warehouse centers. Australia’s New FBA Program is a game changer, particularly for small e-commerce businesses.
This has been a long time coming for the country down under. Until recently, if you were a seller on Amazon, you would have to send your inventory to a warehouse in another country or take care of handling and shipping yourself – neither of which were ideal options. It wasn’t just a pain for sellers; it also meant longer wait periods for customers in Australia to receive their orders.
But that all changed this year at the unveiling of Australia’s New FBA center- a 24,000-square-meter warehouse located just outside of Melbourne. Fulfillment by Amazon (or more popularly known as FBA) is a storage and shipment program with warehouses around the world. FBA allows third party sellers the option of utilizing Amazon services to control the backend logistics of running their business – services like handling, shipment, storage, and returns.
This frees up business owners to worry about building their brand and improving their marketing strategies. Entrepreneurs in the U.S. and 15 other countries have enjoyed the benefits of this program for awhile, and now Australian sellers can, too.
An FBA warehouse in Australia means smaller companies can take advantage of the same handling and shipment opportunities that vendors have, creating a more even playing field for lesser-known businesses to compete.
Amit Mahto, head of FBA in Australia, explains, “We are focused on helping Australian businesses of all sizes succeed by investing on their behalf and making our technology available to them.”
But this isn’t just exciting news for third party sellers. Australian consumers will benefit as well.
Soon, Amazon will offer our friends across the pond access to Prime Membership, another advantage that could help influence e-commerce businesses. Prime members enjoy the benefits of free shipping with $50+ orders and one-day delivery options. This is a starch contrast to the initiatives and wait time Australian consumers have experienced in the past.
The pricing structure is as follows:
Amazon will charge third-party sellers $1.76 to fulfil an order that fits in a small envelope.
It will charge $25.48 for a bulky order weighing up to 30 kilograms.
It will charge $7.76 to pack and send an order weighing up to three kilograms.
The Australia Post charges $8.50 to send a parcel that size anywhere in Australia.
Storage will be charged at $19.40 per cubic metre for the most of the year and $26.50 per square meter during the busy holiday season (October – December).
Australian businesses pay a monthly fee of $49.95 to sell their products on Amazon, which also takes a cut of sales between 6% and 15% contingent on product category.
In conclusion, this is a very exciting time for both Australian-based sellers and buyers. However, it may have a consequential impact on brick and mortar businesses.
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