Amazon's imminent arrival in the Australian market seemingly has retailers on the ropes, unprepared for the organisation's powerful pull for consumers. But Australia's bricks and mortar retailers may not be the only ones unprepared. As Amazon's business model relies extensively on shipping, they may be in for a shock in navigating Australia's shipping and logistics sectors. Stringent biosecurity laws and unusual national infrastructure will provide a totally new challenge for Amazon.
The spike in American shipping since the late 90s has been attributed to a rise in the number of online shoppers.
Figuring out how Amazon's arrival will affect Australian shipping, and how the company will adapt to Australian shipping and logistics will rely on adopting industry leading products and companies into the supply chain – with Eco Pallets high on the list.
How will Amazon change Australian retail?
Traditional national retailers fear Amazon's arrrival will see consumers opting to shop from their couch rather than travel to retail destinations. Marketing agency Macquire forecast that online purchases in Australia will double by 2025. This availability of new products and markets to Australian consumers will generate millions of dollars for Amazon, with an Australian Institute of Company Directors article reporting that 70 per cent of consumers claimed they would shop with the retail giants.
How will shipping be affected, and what are the challenges?
Amazon's arrival will undoubtedly lead to a massive spike in the volume of sea freight into Australia, with shipping and logistics firm Shorr attributing the massive spike in American shipping to the rise in online purchasing.
But Amazon will face significantly different logistical challenges in Australia. In shipping from their own warehouses or from re-sellers, Amazon will have to tackle two unique factors:
- In navigating Australia's complex and stringent biosecurity laws, Amazon need to make sure they, and their reselling partners, are following national shipping protocols. They also need to ensure they are using properly treated and biosecure logistics products and equipment, in order to avoid costly bureaucratic delays.
- The Australian market is unique due to its population density. With the majority of logistics infrastructure centred in a relatively small area on the east coast, Amazon will need to ensure durable shipping to other far-flung parts of the country.
Where Eco Pallets come in
Eco Pallets are at the forefront of shipping and logistics technology, with our wide range of eco-friendly, durable and sustainable plastic pallets offering a cost effective alternative to traditional wooden pallets. In using plastic, freight businesses like Amazon can avoid degradation due to rotting and insect infestations that afflicts wooden pallets. Plastic pallets also provide a bio-hazard free alternative that is compliant with Australian shipping laws.
For more information on the Eco Pallets range, please contact our team today.