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Online retail giant to block Aussie shoppers from global stores

Global online retailer Amazon will block Australian shoppers from purchasing their products from its international store.

Amazon’s move is in response to the government’s proposed GST overhaul which will see retailers forced to collect a 10% tax on all their products shipped to Australia.

Currently, Australian shoppers only pay GST when purchases exceed $1,000 but that will change from July 1 this year.

Amazon strategy expert Hamish Conway says the company won’t be happy about having to make the call and consumers will ultimately find a way around it.

“People want the selection of goods that just aren’t available here.

“Consumers are still going to buy from overseas.”

Mr Conway says now’s the time for Australian retailers to get on Amazon’s platform, as demand is likely to increase when the block is implemented.

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Associate Professor in retail operations at Queensland University Gary Mortimer tells Amazon’s “protest vote” more likely to backfire on them.

“It’s a protest vote, I suspect.

“Amazon were certainly agitating last year when the federal government indicated that they were going to change the legislation and apply GST on online purchases from overseas under $1,000.”

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