Australia Post looks to resell Amazon's services

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The chief executive of Australia Post says the company is in talks with Amazon over reselling the retail behemoth's express delivery services.
Christine Holgate told the Australian Financial Review that Amazon's arrival in Australia presented an opportunity for Australia Post and other retailers.

"You have to have a multi-level strategy. I think Australia Post can be a very powerful partner to Amazon but I think we can also be a very powerful partner to the major retail players in Australia as they go through their transformation, so its not anti-Amazon, its a balanced approach," Holgate was quoted as saying.

She warned that Amazon's entry would have a big effect on local retailing, pointing out that its entry to the UK had stripped $10 billion from British retailers in three years.


Holgate pointed to the example of Canada Post that had partnered with Amazon and come out of the deal fairly well.
She said that Australia Post did not want to follow the example of Britain's Royal Mail and put too much infrastructure in place for Amazon.

"Amazon had launched in the UK and were a massive partner with the Royal Mail, they are still a big partner but are nowhere near as big a partner as they were then," she said.

"Royal Mail built a lot of infrastructure to enable that service for Amazon so as a business we have to be careful about if and how and when we build cost and what are we doing it for."