Industry News

Amazon opening first Australian sort centre

Amazon Australia has announced it will open its first dedicated sort centre in Australia at Goodman Group’s new Amaroo Business Park in Melbourne’s Craigieburn this year.

This will be the American company’s fifth fulfilment centre in Victoria. It says it will help to deliver items more quickly to customers around the state and the country as well as generate 200 new local jobs.

The roles will range from entrylevel positions that will involve sorting customer orders to specialist roles including human resources, workplace health and safety and team leader positions.

“We chose Melbourne as the home of our first Australian fulfilment centre in 2017 and have continued to invest significantly in Victoria, providing employment for hundreds of Melburnians and improving delivery promises for our customers,” Craig Fuller, Director of Operations at Amazon Australia says.

“Opening our first sort centre in Melbourne signifies further our commitment to the state,” he adds.

He also notes it will be a safe and supportive work environment, and the jobs will come with a competitive pay rate.

Amazon says building of the 15,600 sqm sort centre, which is nearly the size of the Melbourne Cricket Ground oval, has started and generated more than 700 construction jobs.

Its sort centres are where alreadypicked-and-packed customer orders are sorted by final destination and then consolidated and shipped to lastmile sites for delivery to customers.

“We know the past few years have been tough for Melburnians, and we’re grateful to have had the opportunity to support our Victorian customers by helping them get the items they need delivered to their homes and supporting thousands of small and mediumsized Australian businesses in reaching their customers more efficiently,” Craig says.

Amazon says the Craigieburn location for the sort centre is well positioned for workers in Melbourne’s north and for transporting and delivering customer orders.

“Continued investments by international companies like Amazon sends strong signals that Victoria is open for business and is strategic location to invest, expand to drive for more jobs and economic opportunity,” Tim Pallas, Treasurer of Victoria says.

Amazon notes the sort centre will support the company’s existing fulfilment and logistics network in Victoria, which includes fulfilment centres in Dandenong South and Ravenhall, and Amazon Logistics sites in Tullamarine and Mulgrave.

“We are helping grow jobs in one of Melbourne’s fastest growing regions to improve regional prosperity and ensure more local families can find quality work options close to home,” Ros Spence, Member for Yuroke says.

Amazon says building of the 15,600 sqm sort centre, which is nearly the size of the Melbourne Cricket Ground oval, has started and generated more than 700 construction jobs.

Households spent $62.3b online in 2021: AusPost

In October 2021, Australia Post announced it would invest an additional $400 million in new facilities, fleet, and technology by the middle of this year.

Australia Post says in its 2022 Inside Australian Online Shopping Report more than four in five Australian households shopped online during 2021 and spent $62.3 billion on physical items.

The national postal service notes this spending brought online share of total retail to 19.3 per cent.

Additionally, it says 81 per cent of Australian households shopped online with 5.4 million households shopping online each month – an increase of 39 per cent from 2019 – and says national growth in online purchases was up 12.3 per when compared to 2020, and almost double the pre-pandemic level.

The report released today outlines the latest Australian e-commerce trends and estimated growth throughout 2021.

Paul Graham, Australia Post Group Chief Executive Officer and Managing Director says the pandemic brought about a fundamental shift in the way Australians live, work and shop, and that online shopping is now a mainstay for Australian families when purchasing everything from clothing to day-to-day household items.

“Right across the 2021 calendar year Australians turned to online shopping like never before, and with fluctuating restrictions and 15 million people in lockdown at one stage, e-commerce was a lifeline for people and businesses alike,” Paul says.

He adds that even as restrictions have eased, Australia’s love of online shopping has not faltered as shown by the estimated growths stated in Australia Post’s latest report.

The postal service company notes consumers’ confidence and comfort with buying online has increased, and they are willing to shop around. It says shoppers are spending across a broader cross-section of retailers and are purchasing items online from new categories.

“Today’s online shoppers are looking for choice and convenience, reliability in supply and delivery, and with 75 per cent thinking about sustainability when they shop online, it’s having an enormous impact on which brands they choose to buy from and where they spend their money,” Paul says.

“While we expected the growth we’ve seen over the last two years to moderate, shoppers’ eagerness to buy online will continue to increase, and Australia Post is ready and committed to supporting our customers as we move into this next phase of retail in Australia,” he adds.

Australia Post says in 2019, the average shopper bought from nine individual retailers while in 2021 that figure increased to 15, and the number of categories increased from six to eight over the same period.

It notes people are now shopping at a different time of the day with most purchases made between 2pm and 5pm, and fewer between 7pm and 10pm.

In October 2021, Australia Post says it announced it would invest an additional $400 million in new facilities, fleet, and technology by the middle of this year.

It says it is also improving the customer experience with new solutions including two-hour estimated time of arrival (ETA) notifications, which it is progressively rolling out.

Nationwide in 2021, it says metro areas saw growth of 12.9 per cent yearon-year while regional locations saw growth of 10.6 per cent, and among the top online buys were athleisure, baby products, footwear, and pet products.

It notes Point Cook in Melbourne’s west was the top online shopping location nationally for the seventh year running, followed by Liverpool in New South Wales, and Hoppers Crossing in Victoria.