Amazon Will No Longer Accept Orders From Australia On Its American Site
The Reason For The Directive
The company has issued a new policy which orders its American site to refuse orders from Australia . Shoppers can order from Amazon.com.au. This is the company’s local site in Australia.
Why the redirection of orders? This is in compliance with a new tax regulation which will take effect July 1. The new tax regulation requires businesses earning more than AU$75,000 a year to charge Australia’s 10% Goods and Services Tax (GST) on low value items imported by consumers.
The “Amazon Tax”
The company’s new policy is called the “Amazon Tax”, which was introduced in response to concerns of Australia’s local traders. Their concern is about the impact of the company and other large overseas e-commerce businesses on Australian retailers.
Local retailers have to apply the GST to all products they sell. However, there is a loophole on tax regulations. The GST is only applicable to items from oversease retailers if they are worth AU$1000 or more. According to local retailers, this gave Amazon, eBay, and other overseas competitors and unfair advantage. Starting July 1, the GST will be applied to oversease purchases under AU$1000.
Amazon’s Australian Site
The company launched its Australian Site last December. the company’s site in Australia currently has 60 million products. This is just a fraction of the 500 million products listed on the company’s American Site. Australian customers will also have access to 4 million products, previously available exclusively on Amazon.com, through its Global Store.
To Place Orders ON Amazon’s Other Sites
The only way an Austalian shopper can place orders on other sites (other than the US), is to have their orders sent to a US or UK address, or use an online freight forwarding service.
This move will affect the company’s Australian shoppers. This is to do something about the local retailers concern, and comply with the new tax regulation law. But they will gt used to it, eventually. And for sure, the company will improve its services to give the best to their Australian shoppers.
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