Daily Management Review

In A Step Towards Launching, Amazon Picks Its First Australian Warehouse


08/03/2017




In A Step Towards Launching, Amazon Picks Its First Australian Warehouse
U.S. retail giant Amazon.com has given pout signals that it is prepared for industrial strife in the world's 12th-biggest economy – Australia, as the retailer unveiled the site of its first Australian warehouse on Thursday and named a German executive as country manager.
 
The Seattle-based retailer said it had chosen an industrial area outside the second-biggest city Melbourne for its first warehouse, three months after revealing plans to launch online shopfront service Amazon Marketplace in Australia.
 
 A showdown with labor unions if Amazon's German example is anything to go by, is likely in `addition to Australia's entrenched retail establishment such as Myer and JB HiFi with the American giant entering full-fledged into the market. 
 
The role of Australian country manager would now be conducted by Germany’s Rocco Braeuniger who has bene transferred to this position from the earlier position of "director of consumables" for Germany, Amazon said announcing the move. Pay and conditions were among the issues that led to the employees of Amazon's German unit going into a strike in December.
 
Braeuniger's appointment was a concern, said Tim Kennedy, national secretary of the National Union of Workers, in Australia.
 
"We will do everything we can to ensure Amazon workers have the right to collectively bargain and organize in their union so they can continue to protect hard-won rights and conditions in Australia," he said.
 
Except saying that he had worked various roles at the company since 2006. Germany is Amazon's biggest operation outside the United States, Amazon offered no further comment about Braeuniger's appointment.
 
Given the proximity of Melbourne to Australia's east coast, where about four-fifths of the country's 24 million population lives, the city is an obvious choice of location for Amazon's warehouse.
 
Having an Amazon warehouse locally adds to pressure on the country's brick-and-mortar retailers to protect already-fragile sales even though currently Australians can already buy Amazon products from offshore.
 
Since rumors of Amazon's arrival began in late 2016, there has been heavy selling of shares of retailers like Myer and JB HiFi. However, even in a weaker overall market, those shares were little changed on Thursday.
 
The warehouse, about 42 kms (26 miles) from Melbourne, would stock "hundreds of thousands of products for delivery to customers across Australia", said another local Amazon boss, director of operations Robert Bruce, in a statement.
 
when it will start its warehouse service and shopfront service in Australia has not been made clear by Amazon as yet.
 
Amazon Marketplace, in which it sells advertising space on its website and logistics support, is being brought to Australia by the company and this is what Amazon has said about the Australian entry so far.
 
Amazon Prime, which typically brings a two-day delivery guarantee, has so far not been talked about to be brought to Australia by Amazon.
 
(Source:www.reuters.com) 






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