Amazon reopens the American store to Australian buyers after a backlash

SYDNEY (Reuters) – Amazon.com Inc (AMZN.O) said Thursday that he would stop preventing Australians from shopping at his US site after an adverse reaction from his customers, thus reversing a move that tarnished the launch of the e-commerce giant in the twelfth world economy.

The reversal relieved buyers who had complained since July that they could not benefit from a much larger offer, which they had become accustomed to on the US site, following the opening of the platform. local Amazon a year ago.

But this also raised questions about why Amazon had invoked Australian tax laws to explain the initial blockage – a rival problem of eBay Inc. (EBAY.O) had managed to solve the problem without forcing Australians to leave their US site.

"It's a very quick turnaround on a decision that clearly did not benefit them," said Daniel Mueller, an analyst at Vertium Asset Management.

"It's probably a reflection on the Amazon Australia website which is not great … I think that to strengthen the Australian website, they had to do it."

The second largest company prevented Australians from placing orders on its US website after Australia applied a 10% tax on imported online products worth less than AUD 1,000 (US $ 726).

At least 32 US states have passed or will soon adopt similar taxes, but Australia was the first market Amazon reacted to by excluding customers based on where they live.

On the eve of its Black Friday sales, Amazon said it had found a way to collect the tax without blocking access to the US site.

An Amazon customer said that he had already abandoned the Australian site. Paul Boon, who runs a home entertainment installation business, said the wall mounts he bought on the US site were either unavailable or too expensive on Amazon's Australian platform.

"They sort of lost a sale over there, I suppose. Maybe I'll have another look the next time I have to order, but you're just moving on, "he said.

A spokeswoman for Amazon said that after listening to the comments of its customers, the retailer had set up "the complex infrastructure needed to allow the export of low-value products in Australia and compliance with (Australian) legislation. "

The move concerns only products sold by Amazon and needs to be further extended to third-party sales, he added.

The launch of Amazon's Australian website a year ago resulted in a sharp reduction in inventories of traditional retailers such as Harvey Norman Holdings Ltd (HVN.AX), JB Hi-Fi Ltd (JBH.AX) and Myer Holdings Ltd (MYR.AX).

Although Amazon does not disclose sales figures in Australia, the National Australia Bank (NAB.AX) Research shows that online sales growth slowed in the 12 months to September and represented just under 9% of the retail distribution market.

EBay, which also does not disclose sales in Australia, said it found the transition complex but was able to collect and remit taxes unamended to customers.

"We want our buyers to buy what they want," said Tim MacKinnon, managing director of eBay Australia and New Zealand.

(1 $ = 1.3774 Australian dollar)