Amazon Business launches in Australia

Amazon has expanded its presence in the Australian retail sector with the launch of Amazon Business, a dedicated business-to-business wholesale store. The move marks Amazon's 11th country-specific business wholesale store worldwide.

Amazon Business will offer millions of products to Australian businesses at wholesale rates, with features like consolidated purchasing and tax invoices. Eligible businesses can access exclusive discounts and free, fast delivery through Amazon's existing courier network.

"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 Australia growth marketing boss Lena Zak told NewsWire.

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While Amazon did not disclose eligibility criteria, Ms Zak emphasised the company's customer focus. "We are really customer-focused, not competitor-focused … We've invested in our selection, we've invested in our delivery processes and customers are getting deliveries as fast as the same day."

Amazon Business sells a wide range of supplies beyond traditional office products, including cleaning supplies, trades equipment, cookery and first aid. The centralised purchasing aims to streamline procurement for businesses like day care centers that previously had to visit multiple stores.

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The launch also benefits the 14,000 Australian businesses that sell on Amazon's platform, providing access to a new customer base. "So for those sellers on our side, we're now giving them access to a whole new customer base to continue growing their businesses," Ms Zak said.

Independent research from YouGov indicates 78% of small and medium businesses in Australia have made cost-cutting measures in the past three years, signaling potential demand for Amazon Business's wide product range and discounts.

The unstoppable rise of Amazon in Australia

The move comes after Amazon's AU$7.7 billion in sales across Australia and New Zealand last year. While there are no immediate plans for grocery deliveries like in the US, UK and Mexico, the launch of Amazon Business marks another significant expansion of the retail giant's growing footprint in Australia.

As Amazon continues to invest in its Australian operations, businesses and consumers can expect further disruption to traditional retail models. The launch of Amazon Business raises questions about the future of office supply stores and wholesale distributors.