The big retailers and supermarket chains are the businesses to feel most threatened by the arrival of Amazon to Australia.
The online titan today confirmed its plans to hire hundreds more people and invest millions to build out its retail offering in Australia.
But smaller businesses might think the entry of the US online giant to Australia is a good idea.
A key part of Amazon’s drive into Australian retail is to bring small businesses to its Marketplace program.
The details of Amazon’s plans haven’t been released but Amazon Marketplace, where small players can sell their wares on Amazon, is a key part of the drive in Australia.
Some Australian businesses are already using this way of selling on Amazon by signing up in the US to gain reach to international markets.
Amazon typically charges a monthly fee, starting at $US39.99, plus a charge of around $US0.99 for each item sold.
The money is usually collected by Amazon and remitted back to the vendor.
In Australia, Amazon is also expected to offer a delivery service to those small business not wanting to do their own fulfillment, again for a fee.
Amazon says the benefits include: “Access a massive audience of confident customers — in the US alone, Amazon has over 95 million monthly unique visitors.”
Danny Ing, founder of New Zealand software company Cin7, says small businesses can open up a massive new market by selling through Amazon.
“I’ve worked with companies in the US that are growing from $1 million to $30 million revenue in just a few years by selling on Amazon,” he says.
“I believe Amazon will give Australian businesses that same opportunity,” said Ing, who is also the chief architect at the New Zealand software company.”
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