Australia Post is in the box seat to work with the global online giant Amazon when it officially opens in Australia, which is expected to be in the coming year.
It's expected the large Australia Post network, which already helps deliver Amazon goods across the county, will reach out to the group to provide much-needed courier and postal services.
Amazon has appointed CBRE to advise on a roll-out of larger distribution centres, which Amazon terms "fulfilment centres" and also, it is expected, smaller sites closer to the capital cities to ensure it can keep its promise of speedy deliveries.
Ben Franzi???, Australia Post's general manager parcel & e-commerce services, was in Sydney during the week to address the Business Breakfast Series and said the demand for e-commerce deliveries was "significant".
Mr Franzi said the entry of Amazon will "improve the demand for services that are wanted now".
"Aussie Post is working on a number of new services, such as Saturday deliveries, as choice is critical for consumers," Mr Franzi said.
"We will reach out to Amazon when they are here as we believe we can offer them a range of delivery options. Aussie Post has 260 locker facilities nationally and also its partnership with Woolworths to install at least 500 24/7 parcel lockers in supermarkets across the country, providing shoppers with convenient parcel collection and returns."
The free parcel lockers will be installed in Woolworths supermarkets across the country.
In a note to clients, Macquarie Equities said Amazon could build a $14 billion business in Australia but it will take time.
"Amazon currently enjoys 4.2 per cent market share in the US, 38 per cent of online sales, and 3.5 per cent market share in the UK, of which 24.4 per cent is online sales," the Macquarie analysts said.
"Looking at growth, Amazon represented 65 per cent of total US online sales growth in 2016 and 30 per cent in the UK. Allowing for our retail sales forecasts to 2025 and assuming Amazon can reach 25 per cent of total online sales in Australia, we believe Amazon could build a $14 billion business by 2025.
"Whilst listed and industry feedback on precise timing of entry is uncertain/variable, the group's US and UK operations currently achieve $1.6 billion to $1.7 billion of revenue per fulfilment centre. Whilst productivity of each fulfilment centre will clearly vary, this implies the group requires nine centres in Australia."
With speculation that these facilities could be about 80,000 square metres versus the US average of about 63,000 sq m, this would imply a requirement for seven potentially larger facilities.
Mr Franzi said e-commerce has grown from $8 billion to $14.7 billion over the last five years and domestic growth grew by 4.1 per cent year on year, with international increasing by 19.4 per cent year on year.
This growth has been aided by the falling concerns about online credit fraud and also the currency movements that makes buying products from overseas more attractive.
"???Online shopping grew by 11.5 per cent in 2016. The fastest growing NSW postcodes that made the top 10, Australia wide, were Liverpool, at 19 per cent, Gosford at 18 per cent and Baulkham Hills at 24 per cent," Mr Franzi said.
The most popular items (by growth rate) were media, at 22.9 per cent, closely followed by fashion at 16.7 per cent, and health and beauty at 15.5 per cent.
"It is about giving customers greater choice and convenience," Mr Franzi said.
"With Collect@Post, customers can choose to have their parcels sent to one of over 260 free 24/7 parcel lockers, one of over 4000 parcel collect locations, or their own PO Box.
"We now have more than two million Australians registered for MyPost deliveries, which gives customers more choice and convenience with their parcel delivery when they're not at home.
"Safe drop is now our most popular delivery choice. Customer safe drop requests and usage has grown about 300 per cent since October 2016 when we launched safe drop for all customers where an email address or mobile phone number is provided by the sender."