Reports have suggested online retail giant Amazon is considering setting up shop in Australia, a move that will pose a further challenge to bricks and mortar retailers.
The reports come from investment bank Morgan Stanley that says the retailer is looking to gain a larger share of online sales and is already looking for a data center for its web services business.
The report states: “Australia, with its high gross domestic product per capita and highly concentrated east coast population, leads our US internet team to think Australia is a strong potential market for Amazon.”
If Amazon does decide to invest in the Australian market, it could either operate an Australian website without local distribution, or alternatively Amazon could set up a distribution center in the Asia-Pacific region as a way to speed up deliveries.
Commonwealth Bank figures suggest that online retail sales rose 36% to $12.3 billion for the year ending October 2011.
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