Are you a U.S.-based e-commerce entrepreneur who ships to Australian customers? If so, have you heard that Amazon has killed all foreign shipments down under? A new goods and services tax (GST), which went into effect on July 1, is to blame.
The Basics
Australia’s New Tax: A goods and services tax (GST) that affects every international purchase under $1,000 went into effect on July 1.
Why is it bad for Amazon?: Amazon would have to pay additional taxes to Australia because of the new GST.
Amazon’s Decision: Instead of absorbing the new tax, Amazon cut off international shipments to Australia. Stateside sellers with Australian customers may lose out.
Is Amazon doing anything to help overseas product sellers who sell to Australians?
Is Amazon doing anything for Australian customers and non-Australian sellers? Yes.
Australians can still order products from Amazon.com.au. Additionally, to accommodate international sellers, the online retail giant created a “global store” inside Australia. So far, it features about 4 million items previously only available on Amazon.com and Amazon.co.uk.
Online sellers and brands that want entry into the “global store” should get in touch with Amazon. Too busy? Would you rather a professional handle it? Then give us a call. We works with online marketers and businesses on various international transactional matters, including e-commerce issues.
What Are People Saying About The Shift?
Amazon has become a global retail force. As such, many countries, like Australia, are implementing online retail taxes in an effort to balance the scale between digital and traditional retailers. Australia’s Treasurer Scott Morrison explained:
“The second biggest company in the world, run by the richest man in the world, shouldn’t get a leave pass from paying tax in Australia, and they won’t under these new laws to be introduced from July 1 that level the playing field.”
As you probably have already guessed, Australian shoppers aren’t thrilled with the change. “Amazon AU has little selection and higher prices,” tweeted Sandy Lancely. “Amazon US has been popular with Australian consumers for some time. Not just price, but choice too,” she concluded.
What does Amazon say about the switch?
“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.”
Get In Touch With An E-commerce Lawyer
HT Law works with e-commerce businesses and entrepreneurs. We handle contracts, affiliate agreements, and customer terms, in addition to FTC defense representation and conflict resolution assistance.
Get in touch! Let’s talk about how we can help. The consultation is on us.
Contact A California E-commerce Lawyer ❯
