Overseas Retailers Make Up 40% Of Online Sales In Oz
Australians continue to turn to overseas websites for online purchases according to data gathered by Australia Post.
The Sydney Morning Herald reported that sales on websites outside of Australia account for slightly more than 40% of all online purchases made by Australians.
The declining value of the Australian dollar does not appear to have had an impact on overseas online retailers, which accounted for about a quarter of total online purchases five years ago when the Australian dollar was close to or above parity with the US dollar.
“The reason is simple – the level of the dollar also affects the prices of items at old-fashioned bricks-and-mortar retailers in Australia, and the majority of goods are imported,” Australia Post’s general manager of eCommerce Ben Franzi told The Sydney Morning Herald.
Online sales in NSW grew more than any other state or territory in 2016, increasing by 21.1% compared to an 11.5% increase for Australia overall.
While the major department store chains only saw growth of 7% last year, they were the only category that posted greater sales growth compared to 2015 according to Australia Post.
Major online retailers including eBay have spoken out against a proposed ‘Amazon Tax’, which would see all online purchases from overseas hit with 10% GST from July 1st this year. Currently only purchases over $1,000 are subject to GST.