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Expert Discussion on Cross border | Issue 20: Practical Guide: Breaking into the Blue Ocean of Amazon Australia, these are issues that you cannot ignore
Publication time:2023-05-11     Reading times:     Typeface:【Big Medium Small

The Amazon Australia station has been officially launched, and sellers can't wait, ready to meet the opportunities and challenges.


In this issue, Mr. Han Minggang, a veteran European foreign trade driver, "Old Wolf" is invited to explain the latest information about entering the blue ocean of Amazon Australia


Amazon sellers, especially sellers in English-speaking markets such as Britain and the United States, should pay attention, Amazon Australia has officially launched! I believe that all major e-commerce media platforms have announced the news of Amazon Australia. This also means that both local and overseas sellers and all Australian consumers will start to buy and sell on the platform simultaneously and gradually activate the Australian market, a behemoth that has been sleeping for many years.


However, just as the e-commerce industry has impacted and changed the Chinese market in the past ten years, this time, the Australian offline retail market is also facing the same impact and countless unpredictable challenges. Just how big of an impact will Amazon have? How quickly can they attract enough attention and traffic? Or what kind of competitive strategy will the offline retail industry adopt to deal with the overwhelming attack of e-commerce platforms?


As of today, Australia’s local offline retail industry has taken action after Black Friday after learning the news of Amazon’s entry into the market. The local market research report shows that after Black Friday, most of the offline retail stores have begun to cut prices wildly. Trying to use the most direct means to offset the consumption impulse of Australian consumers on the e-commerce platform. On the other hand, Amazon will not do too much in terms of price. To carry out differentiated competition, such as convenient shopping experience and efficient logistics timeliness.


At present, although the Amazon Australia station has been officially launched, you must have noticed that Amazon Prime has not been launched at the same time. Although it is currently impossible to predict the launch time, it can be speculated based on the national consumption level in Australia. Amazon will launch Amazon Prime in the near future when a large number of sellers are pouring in and the supporting logistics system is rapidly optimized to enhance user stickiness and cultivate consumers' consumption habits.

Of course (the next step is the top priority), for the majority of sellers, there are still several difficulties to overcome when entering the Australian website:


Rapid response capability for multi-channel expansion


Christmas is approaching, but the Australian site platform has just opened. Sellers have too little time to register and open stores, put products on the shelves, polish listings, and the most critical stocking, or choose to contact logistics for overseas direct shipments, etc., so the input-output ratio is not enough. High, the expected effect cannot be achieved.


Foreign exchange payment problem


Because the Australian dollar used in Australia is different from the US dollar, euro and British pound that are handled by our familiar payment platforms. However, it is understood that WorldFirst has successfully completed the function of Australian dollar multi-currency conversion payment transaction. So this problem has been solved for sellers using this payment platform.


tax issues


Continuing the tradition of the British, the Australian Taxation Bureau is also very responsive in terms of customs and taxation, especially when the British Parliament has recently made a fuss about VAT collection and payment in the e-commerce industry, the Australian Taxation Bureau will definitely Take precautions and take corresponding precautions.

A brief introduction to the common sense of Australian business taxation:


First of all, here is a piece of good news, which is also the most concerned issue for most sellers, that is, is the tax rate high?


Not high, Australia's service consumption tax rate is not as high as the highest in Europe, and 10% will be levied when the annual sales exceed 75k Australian dollars .
In Australia, unlike the United Kingdom and European countries, there is no value-added tax on goods but a registered goods and services consumption tax, referred to as GST.


Before registering for GST, you must first register for the Australian Business Number (ABN) , which is an 11-digit digital identification to confirm your identity in the Australian tax system, for example, 12 345 678 901


You can apply for GST after registering ABN, and then report quarterly like the UK, and failure to report on time will result in fines and late fees.


It is worth noting that if you only apply for GST, you will not be able to complete normal customs clearance and the tax paid for customs clearance cannot be deducted back! ! !


 
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