How to Enter the Australian Market with Amazon Australia as a U.S. Company

If you have a U.S. company and have been wondering how to best enter the Australian market through a DTC (direct-to-consumer) or D to M to C (direct-to-marketplace-to-consumer), there are actually many pieces to this puzzle that I won't completely cover today. However, an easy way to enter the market that I recently discovered is Amazon Global. Below, I share my answers and associated video time stamps to the most frequently asked questions I was able to discuss directly with Amazon Australia.

1. What does it mean for companies looking to enter the Australian market? (00:49) When Amazon receives a request from anywhere in the world, they'll purchase from the merchant's U.S. store and then fulfill to the overseas consumer.

2. Why are some products sold and others not? Can I change this? (1:24) It's data-driven based on customer keyword searches and glance views. You're automatically opted into Amazon Global Store as a U.S. FBA seller. It's great if you don't intend to proactively build your sales, but keep in mind, you have no control over pricing, branding and ability to collect data about buyers.

3. Can I remove myself from the Amazon Global Store program? (1:57) Yes, you can disable it. It's halfway down the page in Amazon fulfillment settings.

4. If my products aren't compliant in Australia via the TGA, can Amazon Global still fulfill? (2:12) Short answer is YES, Amazon can sell direct to those consumers in Australia even if you're not approved or compliant with TGA.

5. Can you sell direct to consumers in Australia without being compliant? (2:25) Yes, you could do merchant fulfillment shipments with U.S. products and U.S. labels because basically the consumer assumes the risk.

6. Can I fulfill direct to consumer in Australia using my U.S. FBA service? (3:25) No.

7. What is GST? (3:30) This is the Goods and Services Tax, which is the same as what we call the value-added tax, VAT in other regions. It's levied on most goods and services sold for domestic consumption.

8. Do I need to be GST registered if I'm a U.S. seller selling direct to Australian customers? (3:42) No, Amazon will remit GST for FBM shipments to Australia when it's below the $1,000 de minimis value.

9. How much is GST? (4:57) It's 10% in Australia and those taxes are placed within the final price on your listing.

10. The Fulfillment By Merchant Model (5:14) The FBM model for Australia is a great first option to gauge traction but it might be misleading because the sales results are much higher with FBA than with your own merchant fulfilled model — more than 60% higher.

11. Are there FTZ or bonded warehouse options in Australia? (5:45) Yes, this is a strategy used with many clients in China as well.