Set to significantly shake up local e-commerce, Amazon has announced it’s blocking Australian shoppers from its US and international websites from July 1st. The move ensures compliance with new online GST laws, and restricts Aussies shoppers to Amazon’s local website, which has been critiqued for higher prices and a smaller product range.
From July 1st, Amazon’s [more established] American and international websites will cease shipping to Australian addresses.
Aussies shoppers will be re-directed to the local amazon.com.au site, which claims to feature 60 million products, many from international sellers.
The site will also provide access to a new “Global Store”, featuring an additional 4 million products, previously available on its American maketplace.
“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,” an Amazon spokesperson asserts.
“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.”
July 1st marks the date when online retailers will be forced to apply a 10% GST on all purchases shipped to Australia from overseas.
At current, GST only applies to products bought from international retailers over $1,000.
The newly enforced “Amazon tax” follows significant lobbying from local retailers, who are faced with a 10% GST on all online and in-store purchases.
Considered a win for local retailers, the new GST regulation aims to ‘level the playing field’ against international rivals.
Rival e-commerce platform, eBay, had previously threatened to block foreign sellers if the new GST laws went ahead.
eBay is yet to inform the market of new changes, and follows yesterday’s launch of ‘eBay Plus‘ – a paid membership service which provides unlimited delivery and returns from Australian marketplace sellers.
