eBay teams up with Australia Post to fight Amazon

Australia Post has set up an e-commerce 3PL to handle e-commerce warehousing and deliveries.
Fulfilio is the new business of Australia Post, providing e-commerce software, warehousing, ‘pick-and-pack’, and delivery services tailored for e-commerce merchants. Fulfilio will provide warehousing locations across four major capital cities (Sydney, Melbourne, Brisbane and Perth), enabling inventory to be located as close to buyers as possible, and therefore ensuring faster delivery times.
eBay.com.au has now announced a partnership with Fulfilio to offer a national 3PL network to its sellers. The new service, eBay Fulfilment Partner, will provide eBay sellers with the best price to pick, pack and deliver their eBay orders, with distribution by Australia Post’s delivery network. There have been more than 53.2 million eBay parcels shipped domestically in last 12 months alone.
With a network of 40,000 Australian sellers and more than 11 million Australians visiting eBay each month, eBay says it is able to offer its sellers the best rates, helping them reduce costs, save time and remain competitive. For example, on 500g parcels sellers will pay rates as low as $5.74 for pick, pack and delivery for a cross-town service, and $6.83 for interstate service – saving sellers up to 30% on picking and delivery costs (based on industry averages across picking, packing and last-mile costs).
eBay’s senior director of product and shipping Dave Ramadge said: “At eBay our number one priority is to support the 40,000 Australian businesses that operate via ebay.com.au. In this partnership with Fulfilio and Australia Post, we are giving our sellers Australia’s most comprehensive delivery network with over 57,000 square metres of storage and distribution space across the country.
“We will continue to deliver sellers the lowest cost to pick, pack and deliver their eBay orders, so they can put their inventory closer to their customers and spend less time packing and more time selling.”
 

Amazon launches 3PL service in Oz

Amazon’s third-party logistics (3PL) service that goes by the name of Fulfilment by Amazon is now available to its Australian suppliers.
“The thousands of businesses registered to sell on Amazon’s Australian Marketplace will be able to access Fulfilment by Amazon (FBA),” Amazon said in a statement. “Businesses can now benefit from Amazon’s logistics capabilities, helping them quickly and efficiently reach customers across Australia.”
Instead of warehousing, picking and packing, and dispatching themselves, businesses selling via Amazon send the products they wish to ship through FBA to Amazon’s distribution centre and when a customer places an order, Amazon will pick, pack and ship the product on behalf of the business. This is said to save time and money for businesses as they will no longer need to individually purchase shipping materials, individually pack orders, and make multiple trips to the post office. They will also access Amazon’s much lower freight rate structure, and Amazon will also handle all customer returns.
The service is not restricted by company size. Businesses of all sizes, or even individuals selling out of their home, can make use of the service.
“Size doesn’t matter in the digital economy and Amazon Marketplace helps to level the playing field when it comes to starting or growing a business,” said Amit Mahto, head of FBA in Australia. “We are focused on helping Australian businesses of all sizes succeed by inventing on their behalf and making our technology available to them and FBA is a fantastic example of this. Customers shopping on amazon.com.au will be able to access an ever growing and more unique range of products accompanied by the convenience of fast delivery and Amazon’s world-class customer service.”
FBA gives customers free delivery on eligible orders above $49, and with Prime set to launch in mid-2018, all FBA orders will also be eligible for the Prime shipping discounts.
Australian businesses pay a monthly fee of $49.95 for the right to sell their products on Amazon, on top of which comes a commission on sales of between 6 per cent and 15 per cent.
Amazon charges third-party sellers from $1.76 up to $25.48 for a bulky order weighing up to 30 kilograms to pick-and-pack an order.
On top of that, Amazon charges $7.76 to send an order weighing up to three kilograms.
 

Parkes National Logistics Hub

Parkes Shire Council is releasing further information about the opportunities available at its national logistics hub.
 

 
You may remember Parkes Shire Council from its cheeky video back in May 2017, bidding for Amazon to choose the area for its first Australian distribution operations.

Amazon launches fulfilment service in Australia

Businesses registered to sell on Amazon’s Australian Marketplace are now able to access Amazon’s logistics service, Fulfilment by Amazon (FBA).
Through the service, businesses send products to Amazon’s fulfilment centre and, when a customer places an order, Amazon’s fulfilment staff picks, packs and ships the product on behalf of the business, and handles customer service and returns.
Sellers are charged for storage space and the orders Amazon fulfils, while the cost of shipping is included in fees.
“Size doesn’t matter in the digital economy and Amazon Marketplace helps to level the playing field when it comes to starting or growing a business,” said Amit Mahto, Head of Fulfilment by Amazon – Australia. “We are focused on helping Australian businesses of all sizes succeed by inventing on their behalf and making our technology available to them, and FBA is a fantastic example of this.”
Customers purchasing items sold on Amazon’s Marketplace now have access to Amazon’s delivery offers that were previously only available on order direct from Amazon’s own stock, for example free delivery on eligible orders above $49, and other one-day expedited delivery in select areas across Australia.
Amazon noted that all FBA orders will be eligible for Prime delivery features, once the Prime service launches in mid-2018.

Construction begins on new Fujitsu DC in NSW

Industrial builder Vaughan Constructions has begun work on the new Australian headquarters and distribution centre of air-conditioner manufacturer Fujitsu General Australia.
The five-star Green Star energy–rated development is being built in Eastern Creek in Western Sydney, New South Wales.
The 11,093sqm facility will house Fujitsu General Australia’s head office, 8,500sqm distribution warehouse and the company’s support service, Fujitsu General Assist.
“The development will provide space and resource for Fujitsu General’s continued growth in the air-conditioning market,” said Philip Perham, Managing Director, Fujitsu General Australia.
“The building design has a five-star Green Star rating and follows the company’s sustainability philosophy, to ensure we continue to safeguard a rich natural environment for future generations.”
Andrew Noble, Managing Director of Vaughan Constructions, added: “This pivotal piece of infrastructure will not only support the operational needs of Fujitsu General, but provides a superior work environment with exceptional staff facilities.”
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Fujitsu General has signed a ten-year lease from site landlord Jacfin, who appointed Vaughan Constructions for the multimillion-dollar development.
Vaughan Constructions and Fujitsu General consulted Sydney-based design firm ODCM on the design concept for the facility, which is expected to be completed in December 2018.
Image below:
(L–R) Ray Waterhouse (Jacfin), Priscilla Waterhouse (Jacfin), Philip Perham (Fujitsu General Australia), Mark Taylor (Fujitsu General Australia) and Andrew Noble (Vaughan Constructions) at the sod-turning ceremony on 15 February 2018.
(L–R) Ray Waterhouse (Jacfin), Priscilla Waterhouse (Jacfin), Philip Perham (Fujitsu General Australia), Mark Taylor (Fujitsu General Australia) and Andrew Noble (Vaughan Constructions) at the sod-turning ceremony on 15 February 2018.

Toll designs ‘next-gen’ DC around e-commerce

The Hon. Melinda Pavey, Minister for Roads, Maritime and Freight, New South Wales, has attended the official opening for Toll Group’s new distribution centre in Western Sydney, a facility the Australian logistics company claims is specially designed to support online retailing.
Pavey performed the ribbon cutting, alongside John Mullen, Chairman of Toll Group, and Alex Linton, General Manger – Logistics of Specialty Fashion Group, the new DC’s inaugural anchor tenant.
The $160 million “retail and e-commerce centre” is set across 32,000sqm, and incorporates 15,600sqm of automation equipment.
According to Toll, the facility is capable of picking, processing and packing 375,000 items per day, shortening delivery times “from days to hours.”
“Staying competitive in a rapidly changing global market requires vision, determination and an appetite for change, and that’s what Toll’s new facility will provide,” said Pavey.
Chris Pearce, Divisional Director – Toll Global Logistics, noted that today’s market is placing aggressive demands on retailers to provide fast fulfilment and delivery, while keeping costs down.
“Toll’s investment in the new facility is helping our customers adapt to the new retail environment,” he said. “The facility is equipped with $50 million in advanced automation technology so retails can deliver their e-commerce orders faster and in a much more economical way.
“This advanced technology will increase our productivity fivefold – capable of picking, processing and packing 70 million items per year.”
Specialty Fashion Group worked with Toll in the design of the facility, with scalability and future growth in mind.
“At Specialty Fashion Group, we’re constantly looking to improve the omni-channel experience for our customers,” said General Manager – Logistics, Linton. “We have a highly specialised supply chain, so we needed a customised solution that would meet our ongoing needs as a retailer.”
Automation of the facility will reportedly reduce manual handling by 70 per cent, expected to lead to a reduction in safety incidents.

Australian online retailer The Iconic moves to major new DC

Australian online fashion retailer The Iconic has moved to a new, larger distribution centre (DC) in Yennora, New South Wales, due to growing customer demand and in preparation for forecasted growth over the coming years.
The company says the 19,000m2 site will be Australia’s largest ‘fashion wardrobe’, home to 700 brands, more than 45,000 different products and innovation in delivery, returns and technology.
“In just over five short years, The Iconic, Australia’s largest online fashion and sportswear destination, has redefined the Australian retail landscape and raised the bar in the way consumers shop for fashion,” the company said in a statement.
“The Iconic is now five years old and growing faster than ever,” said Patrick Schmidt, CEO, The Iconic. “We’ve expanded our team significantly, welcomed an influx of new customers shopping our site and app and have on-boarded so many beloved global and local brands that we’ve physically outgrown the warehouse space that saw us through our early years.
“As we prepare for the exciting years ahead we are pleased to have successfully relocated to a much larger and more sophisticated fulfilment centre to support the growth of our business through 2020 and beyond.
“This considerably larger space ensures we have the capacity to keep up with demand for the latest styles our customers want, and also supports our commitment to offering industry-defining delivery options to make online shopping joyful, convenient and seamless.”
The Iconic’s new DC is the size of three football fields, and moving operations to the new facility took 500 of the company’s staff members 25 hours, 50 truck runs – and 2,000 Subway sandwiches.

Amazon to hold online selling summit for Australian retailers

E-commerce retailer Amazon has released details of a summit to be held in Sydney in November to advise Australia’s retailers on setting up and growing online businesses.
The first-ever Amazon Marketplace Seller Summit is being run in partnership with the Australian Retailers Association (ARA) and small business network, the SME Association of Australia (SMEA).
Amazon Marketplace is an online platform that enables third-party retailers to list items for sale on Amazon’s website, elsewhere orders can be fulfilled by the merchant or by Amazon itself, though the company has not released any information confirming whether fulfilment by Amazon will be offered in Australia, or on what timeline.
Amazon has reported that over 500 businesses have already registered to sell their products on the Amazon website when Marketplace goes live.
Rocco Braeuniger, Country Manager, Amazon Australia and Fabio Bertola, Head of Amazon Marketplace in Australia, will speak at the event, along with various other retail experts and entrepreneurs.
“The internet and technology have the power to level the playing field between big and small businesses, empowering Australian companies, large and small, to grow their sales and their business online,” said Braeuniger. “We look forward to enabling local businesses to make their products available to a wide audience, not only in Australia, but also worldwide.”
Russell Zimmerman, Executive Director, ARA, said: “We believe that Amazon’s arrival brings new possibilities to Australian retailers, small and large. We are pleased to work alongside Amazon to bring the Seller Summit to Sydney so that businesses and retailers alike can receive practical advice and guidance on how to make the most of Amazon Marketplace.”
The free, half-day event will take place 13 November at Jones Bay Wharf in Sydney.

Linfox appoints new President – Retail

Logistics and supply chain company Linfox has appointed Terry Quinnell President – Retail.
A retail supply chain professional with 40 years’ experience in the logistics industry, Quinnell began his career as a Linfox driver in 1978, where he was quickly appointed Linfox Supervisor for Coca-Cola in Victoria.
In 1993, Quinnell left Linfox to join DTM Business Logistics, where he held several senior leadership positions including State Manager and CEO.
He returned to Linfox as General Manager in 2004, managed some of Linfox’s largest customers as Vice President – Retail, and spent nine years as General Manager – Woolworths. Quinnell recently led the development and implementation of Linfox’s new subcontractor management system, FOXLink.
As President – Retail, Quinnell will be responsible for managing warehousing and distribution for leading retailers in Australia.
“Terry is an accomplished leader with a proven track record in people management and customer relationships,” said CEO Linfox Australia and New Zealand, Annette Carey.

Amazon officially confirms location of first Australian DC

Rumours that ecommerce company Amazon has chosen to house its first Australian distribution centre (DC) in Dandenong, Victoria, have been officially confirmed today, as reported by various news sites including Gizmodo.
The 24,000m2 Dandenong South facility is housed in the Pellicano M2 Industry Park, Amazon said in a statement this morning, offering easy access to several major transport links including the South Gippsland Highway, the Monash Highway and Eastlink.
The Queensand Times reported that an executive from Amazon’s German operations – Rocco Braeuniger – will take on the role of Country Manager for Amazon’s Australia website in the coming months.
“We are thrilled to be creating hundreds of new roles in Dandenong South,” said Robert Bruce, Director of Operations – Australia, Amazon.
“This is just the start. Over time, we will bring thousands of new jobs to Australia and millions of dollars of investment as well as opening up the opportunity for thousands of Australian businesses to sell at home and abroad through Amazon Marketplace.”

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