Ben Gemkow

Lead, Amazon & Marketplaces

Amazon Restricts International Shopping for Australia

Amazon recently announced that Australian shoppers will only be able to purchase Amazon products through the Australian Amazon website, which has about a tenth of the range of products as the U.S. site. This move, known as “geoblocking”, is in response to a new Australian tax of 10% goods and services (GST) on imported online goods worth less than A$1000 (or $756 USD). Starting July 1, 2018, Australian shoppers will no longer be able to purchase from the U.S. Amazon site -- or any international Amazon stores.

In the short run, this move is expected to a be a win for local Australian businesses. Previously, the GST only applied to imported goods worth over A$1000. As a result, low-cost imported items were often cheaper than local product equivalents.

An Amazon spokesman said of the news: “While we regret any inconvenience this may cause customers, we have had to assess the workability of the legislation as a global business with multiple international sites.”

What Do Rise Experts Think?
This move demonstrates that Amazon is not afraid to flex a bit of power if countries impose a competitive tax against them. While this move will benefit Australian local businesses in the short run, the impact will lessen over time as Amazon fully builds out its AU inventory. International advertisers should be aware of how Amazon has reacted in Australia, and how Amazon may react in other countries that impose new taxes.

If you’d like to discuss your international Amazon marketing strategy, contact Rise today.

06/07/2018 at 06:19

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