Amazon's Fulfilment by Amazon (FBA) service has fundamentally changed how goods are stored, picked, packed, and delivered — first in the US and Europe, and now firmly in Australia.
For logistics operators, warehousing providers, and Amazon sellers, understanding how Fulfilment by Amazon works and where the opportunities lie is no longer optional. Here’s your complete guide to Amazon FBA in Australia and what you need to know as a logistics business.
Amazon's growth in Australia
Amazon launched in Australia back in December 2017, and it’s been growing rapidly ever since.
Today, Amazon is the second-largest online retailer in Australia. It has been a real shake up and challenge to traditional retail giants. There are now around 4.29 million Prime members in the country, with Amazon Australia's Prime membership revenue reaching $480 million. Plus, more sellers are choosing to list on Amazon's marketplace rather than sell wholesale directly to Amazon.
To put it on a global scale, Amazon generated a whopping $638 billion in net sales worldwide in 2024. There were an estimated 200–220 million Prime members globally.
How FBA works and why it dominates
FBA (Fulfilment by Amazon) is simple in concept: sellers send their stock to Amazon's fulfilment centres (warehouses), and Amazon takes care of the rest — storage, packing, shipping, customer service, and returns.
The biggest appeal for sellers is that FBA products automatically become Prime-eligible, which means faster delivery badges, better visibility, and higher sales conversion. It's no surprise that in 2025, 82% of active Amazon sellers used FBA in some form.
What this means for Australian logistics and 3PL businesses
FBA does not replace third-party logistics (3PL) providers — it actually creates new demand for them. There are two key reasons Australian 3PLs remain essential.
First, Amazon's fulfilment network is focused on smaller parcels. Anything oversized or overweight still needs an alternative solution. That’s where 3PLs come in.
Second, Amazon has strict rules around a shipment’s weight, pallet size, shipping label, and packing standards before it even arrives at a fulfilment centre. Get it wrong and your shipment gets turned away, and you might face costly penalties. This is a genuine pain point for many merchants, especially those new to Amazon.
At the same time, it creates an entirely new service opportunity for 3PLs: FBA Preparation services. 3PLs that offer FBA Preparation services can step in to check, repack, and label shipments correctly before they reach Amazon.
In fact, 3PLs offering FBA Prep reported higher profitability growth in 2024 than those offering other fulfilment types.
It’s a real value-add that sellers are actively looking for to increase the efficiency of their business. You can use this opportunity to set your business apart from competitors who offer standard warehousing alone.
The Australian 3PL market opportunity
The opportunity here goes beyond Amazon. The broader 3PL market in Australia is growing strongly even on its own. It was valued at $24 billion in 2024 and is forecast to nearly double to $44.3 billion by 2033. growing at a compound annual rate of 7.04%.
A big driver of this is the continued rise of online shopping. Australians spent a record $69 billion in 2024. This is up 12% from the year before.
And it's not just the volume that's growing. Customer expectations are rising too. More and more Australian shoppers expect fast, reliable delivery as standard, not a bonus. That puts real pressure on logistics businesses to invest in better systems, faster turnaround times, and more transparent tracking.
For 3PLs, this means sellers are actively looking for partners who can handle more than just basic fulfilment. They expect multi-channel, technology-integrated services across Amazon, eBay, Shopify, and direct-to-consumer stores all in one place.
How to position your 3PL business as Amazon-ready
If you run a logistics, warehousing, or 3PL business, here are the areas to focus on:
- Offer FBA Prep services: Help sellers get their shipments compliant before they reach Amazon's doors.
- Support multi-platform selling: Sellers want one partner who can manage their inventory across Amazon, eBay, and their own webstore. You can be that person.
- Be ready for upfront payment: Successful Amazon merchants expect to pay for logistics services upfront, not on arrears
- Have a recovery plan: When Amazon rejects a shipment, sellers need someone who can repack and reship quickly.
International sellers entering the Australian market, particularly from Europe, the US, and Asia, will be actively seeking logistics partners who understand Amazon's requirements. Being "Amazon-ready" is fast becoming a meaningful point of difference in the Australian market.
Need somewhere to hold your stock? Whether you're waiting to send goods into Amazon's fulfilment network, need a flexible storage solution for items that don't fit FBA's requirements, or simply have questions about logistics and storage for your 3PL business, Holloway Removals and Storage has you covered. Get in touch with our team today and let’s talk through your needs.
