Australian’s are currently dissecting the news that Amazon will block Australian users from purchasing products from Amazon.com, instead pushing traffic to their local site Amazon.com.au. This change comes hot on the heels of the Government’s move to apply Goods & Services Tax (GST) to overseas purchases under $1,000 from July 1, 2018.
So, what are the possible implications for online buyers and sellers?
AN INCREASE IN FREIGHT FORWARDING SERVICES
Freight forwarding services will receive a boost from Australian customers. These services allow Australians to buy products on international sites that don’t ship to Australia, like Amazon.com, instead shipping to their US address before forwarding onto an Australian address.
If like-for-like products on international sites continue to be far more expensive in Australia, we expect to see this become a more popular option for consumers.
A DOUBLE BOOST FOR AMAZON AUSTRALIA
If there are two factors that will make Aussies forget their initial outrage over Amazon’s changes they are competitive prices and fast delivery.
An obvious, and desired outcome of the GST, is to encourage Australian’s to shop locally. If products on Amazon Australian can become more competitive, and imports more expensive, Amazon Australia should experience a boost in sales.
Amazon have recently announced their second fulfillment centre location will be in South Western Sydney, meaning they’re literally primed to launch Amazon Prime. This service will accelerate their growth and improve the speed of delivery creating a better customer experience.
GOOD NEWS FOR EBAY?
Australia’s current marketplace leader, eBay might just be the big winner here. eBay has recently launched some serious advertising campaigns and are transforming their service offering to fend off Amazon.
eBay Plus is their latest play. Subscribers will enjoy free delivery and returns, double Flybuys points, special deals and premium service, for just $29 in the first year. Sound familiar?
FINAL WORD FOR SELLERS
Peter Scully, Country Manager WorldFirst Singapore says the time is right for Singapore-based sellers to start selling on marketplaces in Australia – “We predict Amazon Australia’s sales to accelerate on the back of the GST changes, with Australian buyers converting from the US site to Australia and Amazon Prime predicted to launch shortly. More Australian’s buying locally means a greater opportunity for sellers living in Singapore.
eBay will also continue to be a force in the Australian market, so why not sell on both eBay and Amazon? We encourage our clients to be and sell everywhere, and in Australia, that most definitely means selling on Amazon and eBay”.
AMAZON AND WORLDFIRST
WorldFirst open local currency receiving accounts for the countries you’re selling in. These accounts can be added to Amazon Seller Central which means you’ll be able to receive better exchange rates when repatriating your international Amazon sales revenue, pay suppliers directly from your account and make transfers at times that suit you.
If you’re selling locally and sourcing your products internationally, we can help you achieve better exchange rates when paying your suppliers.