Amazon packages at Correos, Palma. | Ultima Hora

Rumours that Amazon is planning to build a warehouse in Mallorca have sent a ripple of fear through the Island’s Small Business Sector, according to Afedeco.

"This is something that has been talked about for a long time and if it happens it will make the situation even worse for local businesses,” said Afedeco President Afedeco President, Antoni Gayá.

Earlier this week the Government Vice President, Juan Pedro Yllanes said the latest data from the National Institute of Statistics showed that online shopping in the Balearic Islands has soared over the last few months.

Amazon already has several warehouses on the Peninsula but the company has refused to comment on whether it’s planning to open a base here in Mallorca.

The Government is not aware of any plans for Amazon to set up on the Island, according to a Spokesperson who said the Executive “will remain vigilant” and is likely to oppose any efforts to open a branch of the online giant in Mallorca.

The Government's main objective is to digitise local commerce, which is something Gayá proposed months ago and asked the Executive, the Consell de Mallorca and Palma City Council to create a platform of local products and services.

Loss of Business & Jobs

Afedeco says Amazon’s business strategy is to automate warehouses and employ fewer workers than traditional distribution depots.

"Amazon doesn’t just sell to individuals, it also sells to professionals, such as electricians or plumbers," said Gayá, who warned that "local businesses will suffer if Amazon comes to Mallorca."