Amazon warehouse in Mallorca. | IB3

The Government said on Friday it had no knowledge of Amazon planning to set up in Mallorca but according to IB3 the multinational is already up and running from a property near Palma Airport.

Amazon is reportedly planning to build its own logistics centre, but in the meantime it's using a warehouse that belongs to Tipsa, which is one of the companies that distributes Amazon products in the Balearic Islands.

The multinational has operating from a temporary storage and distribution centre in the Son Oms Industrial Estate and Amazon vans and workers have been seen coming and going from the building.

There’s been a massive rise in the number of people shopping online since the beginning of the coronavirus pandemic and some say it was only a matter of time before Amazon cashed in on that trend.

Rumours have been rife for weeks that Amazon was targeting Mallorca, stoking fear in the Small & Medium-sized Business Sector.

Amazon is known for automating its premises so that fewer workers are needed and it also supplies business materials so its arrival could have a devastating effect on local firms in Mallorca and the rest of the Balearic Islands.