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· Posted on
March 18, 2024

Amazon Australia plans to take on Australia Post's delivery-dominance with a new special move

Amazon is bringing in contractors to launch its delivery service program to challenge Australia Post's last mile deliveries.

What's the key learning?

  • Australia Post owns 80% of the parcel delivery market in Australia, so Amazon plans take them on with its new delivery service partner program.
  • When you’re trying to break into an industry with high barriers to entry, it’s a lot easier to do if you get some help from friends.
  • Instead of setting up parcel delivery from scratch, Amazon plans to contract existing small businesses that do delivery.

👉 Background: Amazon launched its Amazon Australia store six years ago. Since then, its established itself as an e-commerce behemoth, crossing $3 billion in sales earlier this month. But, its biggest challenge is that it can't keep up with the demand of Australian consumers.

👉 What happened: Now, Amazon is bringing in contractors to launch its delivery service program, with the goal to challenge Australia Post's last mile deliveries.

👉 What else: Get this: Australia Post currently owns 80% of the parcel delivery market. So, Amazon is planning to launch what it calls the "Delivery Service Partner Program" in Sydney, Melbourne, and Brisbane.

What's the key learning?

💡When you’re trying to break into an industry with high barriers to entry, it’s a lot easier to do if you get some help from friends.

💡Logistics, particularly parcel delivery, is a tough industry to just waltz into. You need significant infrastructure and capital before you can start trading. We're talking vehicles, staff, mapping technology, insurance.

💡So, instead of setting all of this up from scratch, Amazon's planning to contract existing small businesses that do delivery.

‍

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