Why I Choose NOT To sell on Amazon Australia Currently

Often I’m asked by beginners on their FBA journey, if they should first sell on Amazon Australia, before going global. Wrong strategy in my opinion.

So in this blog post, I’ll be highlighting why I choose currently not to sell on our own local marketplace. Despite being established for a couple of years now.

Sell on Amazon Australia

Since it sounds so much easier. Just have the products shipped her to our own warehouses. As if that somehow makes it ‘better’ for the seller?

It’s actually just the same as Amazon USA, but there are just better upsides in starting globally.

The core reasons

There is a multitude of reasons why I won’t starting selling products on Amazon Australia just yet. It’s not just me either, but thousands of us.

Here’s just a few reasons:

  1. It’s a slow marketplace. You’ll be selling just a few units per week if you’re lucky. It’s 50 to 100 times slower than the two biggest Amazon marketplaces. If you want to eventually quit your job, then Amazon Australia is not the place to start.
  2. There is no exchange rate benefit. I love selling in the United States, as that 30% exchange rate margin really helps to almost eliminate taxes. At the very least, help me to significantly scale my business.
  3. You want your money to compound. This ties in closely with the slow marketplace point. If you order 500 products, then you want these sold out within 3 months. Not 3 years. Compound your money, so you can launch further products.
  4. We’ll always be a very small country. Compared to the United States and European marketplaces, we’re a tiny spec. Sure, Amazon Australia will become the #1 retailer here one day, but compared to the rest of the world, it will still be a baby.

Of course, there is a good upside. You’ll be the 1st to the party. You (likely) won’t have to spend anything on PPC, unless you’re selling yoga mats. Except the party hasn’t really started yet, with just a few guests inside. It will get better – just give it time. For now, send your products to the US marketplace, even if you’re limited on funds.

Amazon USA is still my pick

I think it will always be my #1 recommendation for the first-time Amazon seller. Where they can build an online business that actually creates sales velocity, since the buyer volume is sensational.

Since the North American consumer loves Amazon. It is the place to shop. Some shop ‘blind’ and purchase on the run, without really thinking too much about products or past customer feedback.

The exchange rate is a real winner if you’re in Australia like myself. Plus an ABN and valid credit card (not just a debit card) is all it takes to get yourself started.

Very rarely do I meet anyone who’s actually seen their real products. So whether you start selling your inventory on Amazon Australia or North America makes no difference. So we can rule this one out.

Amazon Australia remains small

I still don’t sell on Amazon Australia, as it has a long way to go. The guys behind the scenes are absolutely pushing through a lot of marketing strategies to boost their presence, which will see them overtake eBay in coming years.

All beginners should start on the USA marketplace unless you’re one of the rare few who are sourcing products right here in Australia. And even so, there are dozens of Australian brands who are exporting currently. You see, they themselves also see the potential of using global marketplaces, instead of creating a false restriction.

If you need a hand sourcing products, then consider going to the Canton Fair. Vendors work with Amazon sellers all the time, with many beginners just like you.

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I'm Joshua from Australia. 🇦🇺

I've been blogging for 12+ years here and have built up numerous sources of online income.

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