Amazon confirms decision to block Australian customers from US website
Category: #retail  By Pankaj Singh  Date: 2018-06-04
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Amazon confirms decision to block Australian customers from US website

Retail giant Amazon has reportedly announced that Australian consumers will no longer be able to access its U.S. website from July 1, 2018. The decision has come on the same day when the imposition of the new GST laws by the Australian government is expected to take effect. Apparently, this will no longer allow the shoppers in Australia to visit Amazon’s global stores.

According to the new GST collection laws, from July 1, ecommerce companies like Amazon will have the obligation to collect 10% GST on goods which are purchased on their international sites and delivered to Australia. Amazon seems to have regretted the move but has confirmed that the decision had been taken after evaluating the legislative challenges involved in abiding by the new taxation rules.

A source close to the issue said that though the government’s decision is understandable and Australian people need pay GST on the products they buy, it is a difficult task for multinational companies to collect the same. A government official was also quoted saying that this move will allow the Australian businesses to grow, as global entities such as Amazon will no more have unfair advantages.

Reportedly, this modification in GST laws has come after years of local brick-and-mortar retailers voicing their concerns as their business suffered due to the ecommerce boom. Unlike Amazon, eBay has established that it will not follow the course of action and will make extensive changes to its systems in order to facilitate its Australian customers.

However, Amazon has found a way to provide Australian consumers access to additional products available on the global site while remaining compliant of the new laws. Amazon has confirmed the launch of a separate global store and from July 1, Australian shoppers logging on to international sites will be diverted to amazon.com.au. This site already has over 60 million products and now will have 4 million more products that were earlier available only on amazon.com.



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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