Business Partnership Definition: Types, Advantages, and How to Start One
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If you’re already an established seller on Amazon in the US, you might be looking for a new way to grow your ecommerce business. Amazon launched its Australian marketplace in 2018, opening a great new market for international businesses.
Selling in Australia has a few distinct advantages. Unlike some other international marketplaces, there’s no language barrier.
Read on for all you need to know about how to get started selling on Amazon Australia, including:
Receive Amazon payouts
with Wise Business
Amazon Australia launched in 2018 and is a growing marketplace. Although Australian customers had previously been able to shop with Amazon US, the Australian launch was intended to offer customers lower shipping fees and shorter delivery times.¹
Thanks to Fulfillment By Amazon (FBA) it’s possible for international sellers to list items on Amazon Australia and have local logistics and delivery taken care of by Amazon.
If you’re already an established Amazon seller in the US and looking to expand your business, selling on Amazon Australia could be a good way to introduce your products to a whole new market.
Unfortunately, Amazon Australia doesn’t currently offer linked accounts. That means that if you have an Amazon account already operating in the US or one of the other available marketplaces, you’ll still need to create a new one to sell in Australia. For this, you need a unique email address and storefront name.
To sell on Amazon Australia you’ll also need to give the following information:
It’s helpful to know before you sign up that your credit card must be internationally chargeable.
If you don’t have an Australian bank account, one option is to get yourself a Wise Business account to receive payments in Australian dollars. You’ll get your own Australian account details, which can be used to receive money. You can then convert your balance back to USD whenever you like, using the mid-market rate and for just a small fee. |
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You’ll be able to list your products on the Amazon Australia website, under any of over 20 categories and sell directly to customers there. You can then either fulfil your orders yourself — mailing items to customers directly — or choose to use FBA to have Amazon sort out your local logistics on your behalf.
There are several different fees you need to know about. You’ll pay a monthly charge of AUD49.95, plus a referral fee on any products sold. You may also need to pay what’s known as a closing fee of AUD1 for any media product you sell, such as books and DVDs.³
Referral fees vary depending on the product category you’re selling in.
There’s also a charge if you refund a customer purchase. In this case, Amazon will return the referral fee you already paid, minus the refund administration fee which is the lesser of AUD5 or 20% of the referral fee paid.⁴
When you’re pricing your products for Amazon Australia you’ll need to bear in mind the costs involved, including Amazon’s fees, shipping and the cost of goods. Depending on the product you sell, and where it’s being shipped from, you may also have to pay GST — a tax of 10%, or other import costs.⁵ Make sure you include these in your calculations to protect your profit margin.
Typically, lower priced goods, costing in the region of $10-$50 tend to work well. This price point is great for online sales as it’s low enough that customers will still buy unseen, without worrying too much about carrying out their own detailed research on the product, and yet high enough that you can make a profit.⁶
There are over 20 categories open to sellers on Amazon Australia. Some require you to have approval to sell — more on that below. Here are the categories of products you can choose from:
If you plan to sell videos, DVDs or Blu Ray discs, you’ll need to apply for approval before you can start. Depending on the specific products you’re selling, you might also need approval if you’re selling baby or beauty products, home and outdoor goods, health and personal care items, sporting goods, toys or games. Full details are available on the Amazon Australia website.⁷
If you’re selling through Amazon Australia you’ll need to decide whether to fulfil orders yourself directly or use the Amazon FBA service. If you choose to deal with shipping and inventory management yourself, you’ll need to find a reliable way to get your products to international customers, such as using a courier service. It’ll also be your responsibility to hold and maintain your inventory, so you may need additional space to keep the stock you need to sell abroad.
An alternative is to use FBA, which involves shipping your products in bulk to an Amazon warehouse in Australia. Amazon will then deal with holding and shipping orders from within Australia, making it cheaper and quicker for customers there. You’ll pay a fee for this service, which comprises of a cost for storage, and a price per item shipped. Costs vary depending on the type and size of the products you’re selling.
From July 2018, any product being imported to Australia and sold for under AUD1,000 is subject to a charge of 10% for GST (Goods and Services tax)
If you choose to use FBA, you’ll likely use a customs agent or freight forwarder to have your products shipped to Australia in bulk. Your agent will be able to advise you of the fees and taxes you’re liable to pay, which will vary depending on the type of product you are selling, and the value of the shipment.⁸
To sell through Amazon Australia you will need to register a new account for this marketplace. Once you’ve done this, you can get started by taking the following steps:
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See how you can receive Amazon payouts
with Wise Business
Here are a few final ideas to make sure you hit the ground running when you start selling on Amazon Australia.
Read the guide on how to open a Wise Business account |
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Some key features of Wise Business include: |
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Open a Wise Business account online
As Amazon expands into Australia and builds a bigger customer base there, sellers who get in early are likely to benefit. Setting up an Australian account now, and introducing your products to a new market can be a great long term growth strategy.
Do some research into the local requirements, and how to best minimize your costs, and you could give your profits a significant boost by listing on the Amazon.com.au marketplace.
Sources:
All sources last checked February 2024
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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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