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The Australian government extended its 10 percent goods and services tax (GST) to all goods bought online from overseas, effective July 1, requiring online retailers to collect the tax. It was previously applicable only to overseas purchases over A$1,000 ($745). Amazon also gave Australians just one month’s notice that they would be shut out of its global network - sales are cut off when an Australian delivery address is entered - even though the government’s plans were announced a year ago.
Critics say the decision was an excuse to drive traffic to its new local site and promote its Amazon Prime service, “I’ve silver flower cufflinks no doubt that Amazon will be successful here in time, but I don’t believe that this strategy is what’s going to catapult them to success,” said Ryan Murtagh, CEO of Neto, a provider of data and logistics support for about 3,000 online retailers in Australia, “I think actually it potentially could damage them in the long term.”, Amazon has some 550 million products on its U.S, site including those sold by Amazon and third-party sellers, according to Boomerang Commerce, an artificial intelligence technology firm in California, That compares with the 500-600 million offers from third-party sellers on eBay, which includes duplicate products..
Ebay said the decision to build the new tax collection and payment system had paid off with early figures suggesting Australian shoppers were not swayed by the new tax. “It was a big change and it was a global change that needed to be done,” said eBay’s local managing director, Tim MacKinnon, adding that the effort was led by its California headquarters. “A lot of people worked on it, a lot of different teams. We’re really proud that we hit the July 1 deadline.”.
He added its decision to offer Australian shoppers a 10 percent discount on its local, British and U.S, websites for the first week of July had helped generate business, “All of our sites have accelerated,” said MacKinnon, While neither Amazon nor eBay provide data on visitors to their sites and estimating their share of Australia’s A$26 billion-a-year online retail market silver flower cufflinks is difficult, customer dissatisfaction with Amazon Australia is not hard to find, Its Facebook page is overrun with negative comments..
Amazon’s move has also prompted non-Amazon freight forwarders who buy items from the U.S. store domestically and mail them to Australia to seize new opportunities. One such firm, New York’s Big Apple Buddy, this week set up a new site for Australian shoppers. Securities analysts argue, however, that Amazon plays a long game and that given its track record in dominating online retail in many countries, whatever missteps it makes can be fixed over time. “It is highly likely they will get it right in Australia over the longer term, and prices will be competitive, service will be outstanding, and they will eat eBay’s lunch,” Michael Pachter, managing director of equity research at Los Angeles-based Wedbush Securities, said by email.
(Reuters) - Online shoppers purchased more than 100 million products worldwide during Amazon.com Inc’s (AMZN.O) annual Prime Day sale this week, despite glitches on its mobile app and websites that prevented several customers from placing orders, Prime Day has become a major shopping event in the annual calendar for retailers, rivaling the Thanksgiving holiday’s Black Friday as a driver of sales and most silver flower cufflinks retailers now run their own special promotions to coincide with the 36-hour sale..
Amazon said its sales topped those for the Prime event a year ago as well as those for Cyber Monday and Black Friday, but it gave no breakdown of the value of sales or of the scale of discounts it had applied. Having touched a record high that valued the company at $900 billion, almost double than a year ago, shares in Amazon fell back to trade marginally lower on Wednesday. “Given Amazon’s prodigious spending, it is safe to say that any day compared to the prior year should be much better from a sales perspective,” Moody’s analyst Charles O’Shea said.
“The continuing challenge for the company (is) driving margin and profitability in its retail business.”, The world’s largest online retailer said it recorded the largest daily sales for its Echo range of smart speakers, helped by silver flower cufflinks heavy discounts, Fire TV Stick with Alexa Voice Remote and Echo Dot were the best-selling devices, Other top-selling products around the world included table salt in India, Coke Zero and Kleenex tissues in Singapore and electric toothbrushes in China..
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