Is Amazon ready to set up shop in Australia?

With Amazon apparently looking for a datacentre to use for its Web services business in Australia, US investment bank, Morgan Stanley, has interpreted this as a sign that the online shopping giant will enter the Australian market.

In particular, Morgan Stanley pointed to Australia’s rich resources and growing population as major attraction points for Seattle-based Amazon.

Australia’s physical distance from the current economic woes in Europe could also be another factor that has the retailer considering the expansion.

There is also the fact that with the rise of bargain shopping sites such as CatchOfTheDay, Australians have demonstrated that they are keen to grab a bargain and are comfortable in using the Internet to do it.

There is speculation that if Amazon does go ahead and enter the Australian market, they could either set up a domestic website that relies on existing distribution networks or will make use of a dedicated distribution centre that is focused on speedy local deliveries.

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