Amazon is tipped to be expanding its holdings in Australia with a new distribution centre expected to be built in Sydney’s western suburbs.

According to local media reports, the alleged new facility may be located at Goodman Group’s 89ha Oakdale estate.

The potential new location features close proximity to the M4/M7 motorways which could open up speedier delivery to Sydney’s metropolitan areas, likely to the detriment of local retailers.

Major department stores and Australian retail chains have been taken on by Amazon’s local Prime subscription service which offers speedier delivery, discounts, TV content streaming, as well as eBooks and music.

However, a new distribution centre could be a benefit to small to medium-sized businesses who rely on Fulfilment By Amazon on amazon.com.au for orders.

The supposed distribution centre is almost twice the size of Amazon’s 24,000sq m centre facility in Pellicano Property’s M2 Industrial Park at Dandenong South Melbourne which opened last year.

The new centre would join the retail giant’s 43,000sq m fulfilment centre recently opened at Moorebank in southwest Sydney.