We’re afraid Amazon sellers based outside Australia will be forced to stop doing business with Australian customers.
Starting 1st July, Amazon shoppers based in Australia can no longer purchase goods from international Amazon marketplaces.
They will be restricted to Amazon’s Australian website and automatically redirected to it should they attempt to access Amazon US, UK or the retail giant’s other international sites.
The company said this move comes as a result of Australia’s new GST law, which stipulates 10% GST on all products shipped to the country from eCommerce websites abroad.
However, Amazon said they will open a Global Store on their Australian site that will enable Aussies to purchase products from their US marketplace.
Here below is the official statement of Amazon Australia:
“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.
“Based on our assessment, we will redirect Australian customers from our international sites to amazon.com.au where they can shop for products sold by Amazon US on the new global store, available today.
“This will allow us to provide our customers with continued access to international selection and remain compliant with the law which requires us to collect and remit GST on products sold on Amazon sites that are shipped from overseas.”
eBay’s take on the 10% levy
Despite threatening to geo-block Australian shoppers from their overseas marketplaces if Australia continues to revise their GST law, eBay have announced that their customers down under can continue to purchase products from their international sites.
eBay’s spokesman said:
“We won’t block Aussie buyers, redirect them, or require them to pretend they are located overseas. Australians will continue to be able to buy from any eBay site.
“This requires major changes to eBay’s global systems and we are working to have these ready by July 1st.”
What’s more, they’ve rolled out a new service in Australia to compete with Amazon Prime.
Have you thought of a way to counter the negative effects which Australia’s new GST law may have on your business? We hope to hear from you in the comments below.
To your continued success,
Dave & Matt