Hey, big spender: Aussies could splash out an extra $583 million per year

2 July 2018, Sydney, Australia – Online shopping from overseas stores is likely to get more expensive for Australian consumers, according to finder.com.au, the site that compares virtually everything reveals.

Yesterday marked the introduction of a new GST for all goods worth less than $1,000 shipped from overseas retailers.

New finder.com.au research shows 73% of Australians – equivalent to 14 million people – shop from overseas retailers, having made a purchase under $1,000 for an international store in the last two years.

On average these shoppers are spending $80 per purchase, at an average frequency of five times per year.

Collectively, that represents an estimated $5.8 billion spent on international purchases in the last 12 months.

Bessie Hassan, Money Expert at finder.com.au says prices could well go up as overseas businesses cope with the change.

“It’s unclear which retailers will absorb the tax, which will bump up their prices up or which will stop shipping to Australia altogether.”

"Australians love shopping online so it’ll be interesting to see whether this tax deters some from spending with overseas retailers. Others might turn to local stores instead, which would give the retail industry a much needed boost."

Had the tax been completely passed on to consumers, Aussies could have spent an extra $583 million on online purchases from sites like ASOS, Boohoo, Net-a-Porter and Marks & Spencer.

“The reality is overseas retailers are all in the same boat: they want to show us competitive prices and keep their Aussie customers.”

“Make sure you compare prices from a couple of retailers before you buy. Prices will still vary and you want to make sure you’re getting the best deal.”

“Once you add shipping to your purchase, you could be better off buying from a local retailer.”

Gen Y purchases overseas goods online the most (86%) in comparison to Gen Z (80%), Gen X (74%) and Baby Boomers (61%).

Men spend significantly more than women, forking out on average $91 per purchase in comparison to $66 per purchase.

The survey also shows that 16% of respondents only shop online from local retailers, and a further 11% don’t shop online at all.

How to get the best deal

• Compare pricing from different retailers
  If you’re shopping online, copy and paste the name of the item you want to buy, and see what other websites offer it. Compare the prices, but make sure you check out shipping fees to make sure you’re comparing apples with apples.
• Check if there’s a price match offer
  Some retailers will have a price match offer or price beat guarantee. Make the most of these offers and ask!
• Search for a coupon code
  Have a quick online search for a coupon code - you might score free shipping or 10% off for signing up to the retailer’s newsletter.

How much has each generation spent in the last year with overseas retailers?

(source: finder.com.au)