Make way for an Amazon-Aussie standoff
Starting on July 1st, Australian consumers will face more restrictions from e-commerce giant Amazon.
Consumers in Australia will no longer be able to purchase goods from Amazon’s international website (the one that most consumers are used to). They will now only be able to use Australia’s domestic Amazon site. Additionally, Australian consumers will be unable to order items with same-day delivery.
The policy shift stems from Australia’s goods and services tax, which requires Amazon to eat a 10% tax on all overseas purchases. Further, the tax previously applied to goods worth over 1,000 Australian dollars, but the policy recently changed.
E-commerce competitor eBay also considered a similar policy change, but after consideration, it deemed customer satisfaction to be worth more than the tax.
The news has disgruntled Australian consumers and businesses equally. Interestingly, one might think that local businesses would prefer the new policy, as it would increase demand for their products. However, they feel that Amazon has cheated the system and, consequently, the Australian public.
Furthermore, the decision will likely not deter Australian consumers from purchasing on Amazon. The Herald points out that some shoppers are using redirection services to get their unique and specialized products from Amazon.
This demonstrates the sheer power of the e-commerce mogul. People often view Amazon as a popular option because of its low prices, but these Australian consumers are willing to pay more and wait longer than average to receive certain goods.
CEO Jeff Bezos and his company may be able to get away with yet another tax cut, as they often do. This time around, it’s at the expense of Australian consumers.
Featured image via Flickr/Mike Seyfang