Amazon Leases First Australian Warehouse in Dandenong


Following the confirmation of Amazon’s plan to bring their business to Australia shores, reports last week revealed that the global retail company has selected a potential distribution centre site.

According to the Australian Financial Review, Amazon has agreed to lease a 24,387 square metre former Bunnings distribution centre at 29 National Drive in Dandenong within the M2 Industry Park. The centre is owned by Pellicano.

While the media has been unable to track down a comment from Amazon, Pellicano or any other entities involved, Business Insider revealed that Amazon advertised for an operations manager in mid-June, to manage between three and seven “front-line supervisors”.

“The job description also requires the employee to undertake “physical warehouse activities”, including “lifting and moving material up to 16 kilos each” and “standing and walking for up to 10-12 hours a day” in a building more than 400 metres long,” they said.

Earlier this year Colliers international suggested that due to the sheer volume required by Amazon, combined with their need to deliver produce within an extremely short time frame, that they may struggle to find a space that meets their needs.

“Amazon’s value proposition lies in its ability to offer an extensive range of consumer products at low prices by providing a unique customer experience which is dependent on delivering goods with speed, elasticity and mobility,’ Colliers International Research Manager Sass J-Baleh said.

“To fulfil their value proposition, Amazon’s key activity boils down to its logistics and distribution process – it requires a sufficient supply chain management.

“This means Amazon’s key resource is its transit warehouses/fulfilment centres, which typically occupy 100,000 square metres of space.”

The integration of Amazon’s business activity with the Australian retail sector has been a bone of contention with established local names like JB Hi-Fi and Harvey Norman, who have expressed concern over the level of competition due to Amazon’s online capability and predicted sales generation of $4 billion.

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