FlyingPig takes off over Amazon

By Aimee McClinchy

Friday 19th May 2000

Whitcoulls-linked internet retailer FlyingPig has formed a connection with legendary e-tailer Amazon.
com through a merger with an Australian online retailer TheSpot.com.

Hedging its bets on whether the government is to change parallel importing laws and impose gst on local book sales, the merger allows FlyingPig to change the location of its logistics operations down the track to whichever side of the Tasman is most efficient.

In the current climate it was cheaper to base book logistics operations here to supply both countries but if the laws were changed more orders may be fulfilled out of Australia, FlyingPig chairman Stefan Preston said.

Amazon gains an interest in the merger through its 50% interest in f2 Investments, the Fairfax Group's IT investment vehicle which has a significant shareholding in TheSpot.

TheSpot is f2 Investments' only holding.

FlyingPig is to initially fulfil orders for Australia's large book-store chain Angus & Robertson from New Zealand and export to Australia.

Angus & Robertson's parent, Blue Star Consumer Retailing, is also the parent to Whitcoulls, a FlyingPig shareholder.

Mr Preston said FlyingPig would maintain its presence in this country despite any moves in the logistics chain.

"We are a local company and customers need real customer service on the end of the phone."

The two retailers are to retain their individual branding in their respective markets but merge their management resources and product categories.

TheSpot operates two sites - ToySpot.com.au and BeautySpot.co.au with plans for healthcare and babywear categories soon.

Mr Preston said a management group would be set up headed by TheSpot's chief executive Justin Punch.

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