Amazon only just launched in this major country

Helen Cahill
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Online Retailer Amazon Launches In Australia
The online retailer has a distribution centre close to Melbourne (Source: Getty)

Amazon has today started taking orders in Australia, one of the major marketplaces that the e-commerce giant has not yet shaken up.

Australia's £170bn retail market is a huge opportunity for Amazon, but it will also present challenges. Online sales only account for around 10 per cent of total sales, and although this offers room for growth, there is relatively low access to broadband in some parts of the country.

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And, of course, Australia's physical size will present a challenge as Amazon seeks to set up its delivery network.

Amazon has set up a distribution centre outside Melbourne, and estimates its free deliveries to Sydney, Brisbane and Canberra will take three business days. However, deliveries to more remote parts of the country could take up to 10 days.

The Prime service has not yet started, and will be available to Australians in mid-2018.

And, domestic retailers have taken a hit since Amazon first announced its expansion earlier this year. Shares in Myer Holdings, a top Australian department store, are down by around 30 per cent since the news broke.

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