Why Aussies are Buying Overseas. Amazon Service

[csv8]

I ordered a Kindle from Amazon.com on August the 11th it arrived today, the 16th. Thats 5 days from ordering!!! It often takes me 5 to 10 days to get or send a parcel to Perth!!!! No wonder Aussies are buying online.!! Missus has had one for a year..no problems..books etc are much much cheaper than here.
Dick Smith will be Aussie Kindle seller from August 29..but you can only get Kindle in black , other colours are available..and its $50 more than the shipped price. Not sure if DSE Kindle will link to your Kindle account.
Retailers need to be competitive and stop blaming Aussies for buying overseas as cause of their problems.

[Cam]

I don't think it's just amazon.. i just bought car parts from the US totalling $130 delivered to OZ, to buy the parts locally would cost me about $600...

I am all for supporting Australian businesses, but my wallet doesn't allow for it..

[trippytaka]

Originally Posted by csv8

I ordered a Kindle from Amazon.com on August the 11th it arrived today, the 16th. Thats 5 days from ordering!!! It often takes me 5 to 10 days to get or send a parcel to Perth!!!! No wonder Aussies are buying online.!! Missus has had one for a year..no problems..books etc are much much cheaper than here.
Dick Smith will be Aussie Kindle seller from August 29..but you can only get Kindle in black , other colours are available..and its $50 more than the shipped price. Not sure if DSE Kindle will link to your Kindle account.
Retailers need to be competitive and stop blaming Aussies for buying overseas as cause of their problems.

All valid points... but there are a lot of things eating into Austrlian companies:
- Wages
- Massively high rent
- Low volume buying (20m vs 300m population) makes purchase price higher

[MAD]

Originally Posted by trippytaka

All valid points... but there are a lot of things eating into Austrlian companies:
- Wages
- Massively high rent
- Low volume buying (20m vs 300m population) makes purchase price higher

I dont agree with the last point.
Companies in Aus have the same access to the same goods from the US as we do. Sure they have to add 10% GST duty to any import over $1000, but they get the benefit of shipping cost reduction due to volume.
Some of the markups we see on retail prices reflect a whole lot more than the duty cost.
Car audio is a great example of some massive markups.

[cs123]

For a package to be delivered to Australia it will have to pass through the hands of Australian couriers too.

I would talk to your couriers for the Perth stuff. I had a packaged couriered from Perth that arrived the next day.

The online stores don't have the bricks and mortar store fronts to support and this must make a big dent in the cost. I'm not justifying the difference in price but it must be a factor.

[Road_Warrior]

But what do you do when a US online retailer won't ship to Australia?

[MAD]

Originally Posted by Road_Warrior

But what do you do when a US online retailer won't ship to Australia?

You find one that does.

or..

There is a service you can use that will essentially purchase the goods for you, in the US, then ship them to you.
Lots of people in Aus did this when Google first released the Nexus1 Android phone. They only sold it through google checkout and only to US residents.

[TheSneakiness]

I recently ordered a K&N filter for my Paj and I couldn't get one here without ordering one in (so retailers RRP plus postage and no discount coupons allowed cause it's not in store)

I ordered from Summit and the cost of filter and shipping was about $110 which still worked out cheaper than going in store. Wait was about 3 weeks though which I was told from Summit and also gave me a tracking number for it too.

[geckoGT]

Originally Posted by Road_Warrior

But what do you do when a US online retailer won't ship to Australia?

You don't buy it. Just like when the Australian retailer don't have what you want, you don't buy off them.

[trippytaka]

Originally Posted by MAD

I dont agree with the last point.
Companies in Aus have the same access to the same goods from the US as we do. Sure they have to add 10% GST duty to any import over $1000, but they get the benefit of shipping cost reduction due to volume.
Some of the markups we see on retail prices reflect a whole lot more than the duty cost.
Car audio is a great example of some massive markups.

When you are buying to sell 100,000 units you get a higher wholesale price to a business that is buying 1,000,000 units.

Then when you sell, you can put less margin on the product because you are going to be selling so many more units.

[flappist]

Originally Posted by MAD

I dont agree with the last point.
Companies in Aus have the same access to the same goods from the US as we do. Sure they have to add 10% GST duty to any import over $1000, but they get the benefit of shipping cost reduction due to volume.
Some of the markups we see on retail prices reflect a whole lot more than the duty cost.
Car audio is a great example of some massive markups.

Australian companies must by law warrant themselves for up to 7 years whatever they import or build.

They also have to put up with lazy employees who take sickies on a regular basis, want 4 weeks a year holidays, want penalty rates on weekend or at night, want workers comp, want job protection, want immunity from stuffing up, want super etc. while having to pay tax to support for one of the largest percentage of non working benefit receivers/government employees in the world as well as all of the local government expenses.

Maybe you should actually go for a wander off to USA and see how the real world lives. Have you ever heard the term "minimum wage" mentioned on yank TV shows?

[MAD]

Originally Posted by trippytaka

When you are buying to sell 100,000 units you get a higher wholesale price to a business that is buying 1,000,000 units.

Then when you sell, you can put less margin on the product because you are going to be selling so many more units.

Buying as an individual you dont get to buy from a wholesaler.
You buy from a retailer that has already paid for shipping and applied their markup. And yet you still come out in front.

[MAD]

Originally Posted by flappist

Australian companies must by law warrant themselves for up to 7 years whatever they import or build.

They also have to put up with lazy employees who take sickies on a regular basis, want 4 weeks a year holidays, want penalty rates on weekend or at night, want workers comp, want job protection, want immunity from stuffing up, want super etc. while having to pay tax to support for one of the largest percentage of non working benefit receivers/government employees in the world as well as all of the local government expenses.

Maybe you should actually go for a wander off to USA and see how the real world lives. Have you ever heard the term "minimum wage" mentioned on yank TV shows?

You see how I said I didnt agree with the last point? That implies that I did agree with the others.

[trippytaka]

Originally Posted by MAD

Buying as an individual you dont get to buy from a wholesaler.
You buy from a retailer that has already paid for shipping and applied their markup. And yet you still come out in front.

Yes, but an Australian retail company will be selling much lower volumes than an American company.

When I have looked at making tees overseas the difference with volume is astounding. You're looking at 2-5x more expensive at the kind of volumes that an Australian retailer can move, compared to an American retailer.

[geckoGT]

Originally Posted by flappist

while having to pay tax to support for one of the largest percentage of non working government employees in the world as well .

I fixed it for you. By the way, what is wrong with that, we are worth it you know

[SB076]

Originally Posted by MAD

I dont agree with the last point.
Companies in Aus have the same access to the same goods from the US as we do. Sure they have to add 10% GST duty to any import over $1000, but they get the benefit of shipping cost reduction due to volume.
Some of the markups we see on retail prices reflect a whole lot more than the duty cost.
Car audio is a great example of some massive markups.

Put it this way, if you are an Australia retailer, you want to buy 5,000 widgets based on Australias pop and what you hope to sell. A US retailer is buying 100,000 widgets for the same reason but to support Americas population - The US retailer will get a better buying price and therefore can offer a better selling price

Granted some retailers have massive markups but not all - a lot of retailers are hurting at the moment

[MAD]

It could not possibly be cheaper for an individual to buy from a retailer than it would be to buy low volumes from a wholesaler.
If it was, maybe aussie businesses should buy from an overseas retailer instead.

[SteveJH]

Originally Posted by MAD

It could not possibly be cheaper for an individual to buy from a retailer than it would be to buy low volumes from a wholesaler.
If it was, maybe aussie businesses should buy from an overseas retailer instead.

I've heard of small business owners buying stock up from Big W etc when on sale because its cheaper then they could get it through the whole saler. That could just be talk though.....

[XR6_661]

I buy all my mountain bike gear through a large online company in the UK. Because it’s dirt cheap! Can get high end parts for hundreds less than in Aus...Shipping usually takes 5-8 days and if I spend over $300 in a single transaction I get free shipping.

No brainer if you ask me.

I still support my local bike shop though, I get my services done there and if there’s any little things like chains, brake pads, etc…

[flappist]

Originally Posted by MAD

You see how I said I didnt agree with the last point? That implies that I did agree with the others.

Did you read the first line about warranty?

[geckoGT]

Originally Posted by MAD

It could not possibly be cheaper for an individual to buy from a retailer than it would be to buy low volumes from a wholesaler.
If it was, maybe aussie businesses should buy from an overseas retailer instead.

Interesting thought.

Using a car part as an example, I was after an O2 sensor for a 2007 Mini Cooper S R56, which is interchangeable (because they have the same engine) with the Citroen C3 and a couple of Peugeot's. The cheapest price I could get from a retailer here was Repco which listed it as a special order, $600 plus $100 shipping and 6 weeks delivery time coming from europe. The parts dealerships ranged from $650 up to $700 (BMW). Yes people this is an O2 sensor that comes in a box that is about 10x5x5 cm.

I found the exact same part, correct part number out of the US through an online part retailer for $200 AUD and $70 delivery, part arrived within 7 days.

Repco could order the same part from the same place I did, put $100 markup on it and still deliver it to the customer $330 cheaper than what they originally quoted me. Not bad for a total of about 15 mins of work for them. Added to that the delivery time would be a lot shorter too.

[flappist]

Originally Posted by geckoGT

Interesting thought.

Using a car part as an example, I was after an O2 sensor for a 2007 Mini Cooper S R56, which is interchangeable (because they have the same engine) with the Citroen C3 and a couple of Peugeot's. The cheapest price I could get from a retailer here was Repco which listed it as a special order, $600 plus $100 shipping and 6 weeks delivery time coming from europe. The parts dealerships ranged from $650 up to $700 (BMW). Yes people this is an O2 sensor that comes in a box that is about 10x5x5 cm.

I found the exact same part, correct part number out of the US through an online part retailer for $200 AUD and $70 delivery, part arrived within 7 days.

Repco could order the same part from the same place I did, put $100 markup on it and still deliver it to the customer $330 cheaper than what they originally quoted me. Not bad for a total of about 15 mins of work for them. Added to that the delivery time would be a lot shorter too.

Yes but if the part fails two weeks later or does not fit REPCO have, by law, to wear that cost and hope they can recover it from their supplier and if they had fitted it would also have to cover the labour.

I went down the import track many years ago with computer bits and while it can be quite profitable will bite you on the bum in a BIG way when it all goes wrong.

[MAD]

Originally Posted by flappist

Did you read the first line about warranty?

What has warranty got to do with anything regarding my reponse to the point of low volume versus high volume buying?
That would fall under wages as it would be an overhead to running the business. It doesnt affect the buying power one bit.

[tex]

My last set of tires from Tire Rack took 6 days from payment to delivery to me, air frieght to Melbourne, then sea / road freight to my door in Hobart!

Total cost, including frieght was around 50% of buying them local. While I do my best to support local businesses, the difference is simply too much to ignore I'm afraid.

Will be ordering another set of tires from them shortly.

[max_torq]

If the product has a license, then that is cost to be defrayed among the local customers, but also licensed products also have a production delay, plus local variations in build quality, usually from cost cutting. Just buy direct from the originating country; cheaper, faster and better. This is for any media, any software, any IT etc etc...

[MAD]

Originally Posted by geckoGT

Interesting thought.

Using a car part as an example, I was after an O2 sensor for a 2007 Mini Cooper S R56, which is interchangeable (because they have the same engine) with the Citroen C3 and a couple of Peugeot's. The cheapest price I could get from a retailer here was Repco which listed it as a special order, $600 plus $100 shipping and 6 weeks delivery time coming from europe. The parts dealerships ranged from $650 up to $700 (BMW). Yes people this is an O2 sensor that comes in a box that is about 10x5x5 cm.

I found the exact same part, correct part number out of the US through an online part retailer for $200 AUD and $70 delivery, part arrived within 7 days.

Repco could order the same part from the same place I did, put $100 markup on it and still deliver it to the customer $330 cheaper than what they originally quoted me. Not bad for a total of about 15 mins of work for them. Added to that the delivery time would be a lot shorter too.

Exactly. And if by chance you get a bad one, but you chose a good supplier, you can fork out the dough to ship it back for a warranty replacment and still end up a long way in front.

[SB076]

Originally Posted by MAD

It could not possibly be cheaper for an individual to buy from a retailer than it would be to buy low volumes from a wholesaler.
If it was, maybe aussie businesses should buy from an overseas retailer instead.

Amazon and Dick Smith are both retailers (in the ops example) I am sure Amazon would have a better buying price than Dick Smith - hence what Trippy stated would be correct

[MAD]

Originally Posted by SB076

Amazon and Dick Smith are both retailers (in the ops example) I am sure Amazon would have a better buying price than Dick Smith - hence what Trippy stated would be correct

Yes, Amazon would have better buying power than DSE.
But DSE has better buying power than Joe Public.
DSE can buy from a wholesaler.
Joe Public has to buy from a retailer.

[Road_Warrior]

Originally Posted by geckoGT

You don't buy it. Just like when the Australian retailer don't have what you want, you don't buy off them.

What if its a unique product that you'd really like but the US seller won't deal with you because you're not in America? There has got to be a way around it.

[RG]

Originally Posted by XR6_661

I buy all my mountain bike gear through a large online company in the UK. Because it’s dirt cheap! Can get high end parts for hundreds less than in Aus...Shipping usually takes 5-8 days and if I spend over $300 in a single transaction I get free shipping.

No brainer if you ask me.

I still support my local bike shop though, I get my services done there and if there’s any little things like chains, brake pads, etc…

Wiggle is awesome. Just ordered some new running shoes through them. The rrp on them here is $260, I paid $130 from them shipped.

Same with a K&N filter. $150 here for the pug, picked one up from the UK for $60 landed.

There is no way that the difference in price on those items can be justified.