View Single Post
  #13  
Old 11-09-2018, 10:43 PM
RyanJones
Registered User

RyanJones is offline
 
Join Date: Jun 2018
Location: Melbourne,Australia
Posts: 1,439
I have heard of this sort of price discrepancy before on Amazon and I have 2 possible, all be it un-researched and potentially un-fiscally educated suggestions.

1) Amazon Australia is a company based in Australia separate from (although owned by ) it's big brother in the US. Similar to Holden and General motors. The Australian based company has to operate fiscally independent from its parent company. Company tax rates in Australia are 6 - 7 % higher, wages are higher and real estate costs more and as such the company's overheads are higher. Add to that the sheer magnitude of the serviceable market that Amazon US supplies to reducing the required margin on each item ( 25million v's 250million+overseas )

2) It is highly likely that Amazon US is based in the Canary Islands or similar and as such when you buy from them, the sale is made in a TAX free country and then the order is shipped from the US or China Etc. This makes their operating costs significantly lower allowing them to undercut other businesses ( including Amazon Australia ). As far as I am aware, this practice is illegal under Australian Law.

Feel free to slap me if you think I'm talking crap........
Reply With Quote