Stores slam the door
More online retailers to block Aussies
AMAZON’S American store won’t be the only overseas outlet to stop selling products to Australians this weekend.
An exclusive study of Australia’s most popular overseas shopping sites has revealed that from ASOS to Net-A-Porter, eBay to Etsy, each overseas company must charge Australian shoppers the 10 per cent GST on products from July 1.
While the Federal Govern- ment estimated the tax increase would collect an extra $300 million each year, retail experts warned it would also leave Australian shoppers with inflated prices and a restricted range of products, and could strand some purchases in transit due to tax mix-ups.
News Corp surveyed more than 40 of Australia’s most popular online stores, as identified by Hitwise and Nielsen, and found some retailers planned to pull out of Australia after the tax changes, while others were still unsure how to keep selling to local shoppers.
A spokeswoman for American department store Nordstrom, for example, confirmed its main store would continue to “sell and ship to Australia,” but its cheaper offerings at Nordstrom Rack and HauteLook will close their virtual doors to Australian buyers.
Amazon outlets in the US and UK last month said they would stop shipping products to Australia as a result of the changes to GST law.
Amazon will instead offer Aussie shoppers a more limited selection in its local store.
Other large online retailers are still unsure what the changes will mean.
A spokesman for online camera store Adorama said it had “not been provided any information about this”.
A representative for highprofile fashion store Net-APorter also said the company had yet to finalise its approach to GST.
Gartner principal analyst Thomas O’Connor said businesses and consumers were likely to be caught off-guard in the coming months, and he predicted some overseas purchases would be delayed in Customs as officials confirmed whether tax had been paid.
“There are still many companies that don’t understand the changes,” Mr O’Connor said.
“There will be large retailers who think they can still ship here (without collecting GST) and when the Australian consumer tries to have that product clear Customs, it won’t be the typical frictionless process they’re used to.”