Amazon stops blocking Australians from US website after backlash

SYDNEY (Reuters) – Amazon.com Inc (AMZN.O) said on Thursday that he would stop preventing Australians from shopping on his much larger American site, after a brutal reaction from his customers and the dumping of an unpopular policy that the retail giant had declared necessary to comply with Australian tax legislation.

The brutal reversal, less than five months after the introduction of the policy, is a relief for buyers and underscores the fact that the much-praised launch of Amazon in Australia has had a difficult start in a market where some predicted it would condemn existing retailers.

"As a result of customer feedback, starting November 22, Amazon customers will be able to ship eligible Amazon.com items to Australian delivery addresses," a company spokesperson said in a statement.

In July, the online giant prevented buyers 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). ).

On the eve of Black Friday sales, he found a way – like his rival eBay Inc. (EBAY.O) had already done – collect the tax without blocking sales.

"It's a very quick turnaround on a decision that obviously did not benefit them," said Daniel Mueller, an analyst at Vertium Asset Management, adding that the Australian site had a smaller range and sometimes higher prices than the American site.

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

Australia was the first market where the second most profitable company in the world responded to a sales tax by excluding customers based on their place of residence.

Independent analysts said in July that the Australian website offered a product line about nine times larger than Amazon.com in the United States.

(1 $ = 1.3774 Australian dollar)