Australia welcomed the world’s largest retailer Amazon in December last year and there has been a little unrest since then in the Australian market among the shoppers and the bricks-and-mortar retailers. While the Australian sellers are still struggling to gain some momentum, Amazon had announced that it is blocking Australians to shop from the overseas sites starting from 1st of July 2018. And this has left many sellers and shoppers in shock.
What is this change all about?
Australians have been shopping from the Amazon US for many years now. However, from the 1st July, they will be redirected to the Amazon’s Australia website as the company announced that it will no longer be shipping any goods to the Australian addresses.
You must be thinking Amazon is making a smart move to expand and establish it’s Australian market. But the reason is quite different.
With the start of the new financial year, there comes the new GST collection law which puts a strain on the online retailers to apply GST on all the purchases that are made overseas.
Currently, there is a 10% GST applied to purchases made over $1000. However, from the 1st of July, GST must be applied to all the purchases irrespective of the price.
What is the impact on buying-selling?
Apparently, once the changed is rolled out, all the Australian shoppers will be automatically redirected to their Australian marketplace – which pretty much looks similar to the US website except for the fact that Amazon Australia still doesn’t have a wide range of products unlike its US counterparts.
While this is definitely a huge disappointment for the Aussie shoppers, this gives also more opportunity for the local sellers to plunge in and sell those items that are not already sold in the Australian marketplace.
Also, Amazon is planning to launch its next big venture – an international platform called “The Amazon Global Store” in Australia very soon, which will host more than 4 million items that were available exclusively only on its US website. This will help Australians get an easy hassle-free access to the imported goods.
Is there a workaround to bypass the ban??
If you are still so desperate to shop from the overseas market, yes – there is a way. Although Amazon won’t entertain any Australians in any of its overseas marketplaces, you can still get the items shipped to Australia if you have the time and money.
While the ban is only for the Amazon’s websites, the overseas parcel shipping services from United States are free to provide their services as before. So give a local US delivery address for all the purchases and get it re-shipped to your Australian address through a parcel service.
Many people have many different opinions on this move of Amazon. It is certainly going to lose some business and is paving way for its competitors as the shoppers would eventually buy from eBay and Alibaba if they are restricted on Amazon.
But this is only a small proportion of shoppers and hopefully, they will bounce back once the Amazon Australia had set its foot strong enough.
Let us wait and watch for the change to roll out and see how it impacts.
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Fabongo is a Vancouver, British Columbia based agency providing human resources to manage all things Amazon marketplace.