Australian retailer eStore goes ‘GST free’ in response to Gerry Harvey
Gerry Harvey’s calls for a GST on imported goods bought online has caught the attention of Australian IT retailer eStore, with eStore.com.au offering customers GST-free goods this weekend, 15 and 16 January 2011.
According to Lorenzo Coppa, Chief Executive Officer of eStore.com.au, the issue isn’t about the GST, it’s about consumers being savvier when it comes to finding the best deal and that deal is often online.
“Trading for nearly 20 years, we have continued to invest in our processes, improve our service, streamline our operations and kept our costs low whilst responding to the needs of our customers,” said Coppa. “It’s a tough market, but retailers have to adapt to survive. We’ve decided to offer Australians the opportunity to get a better deal on technology products this weekend, by offering a discount to the equivalent of the GST on every product sold.”
“We believe the future is online and that there is a strong trend of transactions moving from retail shops to online as it saves customers time and money,” added Coppa.
“Online retailers can definitely offer customers better deals especially since they have fewer overheads and can pass on significant savings to consumers. Online shopping also saves consumers time and gives them the added flexibility and convenience of shopping from the comfort of their home or office,” said Coppa.
However, Coppa adds that Australian consumers need to be wary when shopping online from overseas websites. “Consumers need to be aware the when buying certain types of products such as technology goods from overseas retailers, issues such as warranties, compliance with Australian standards and damage to the products while in transit which may not be honoured by overseas online stores may occur,” said Coppa.
To claim this discount GST-free this weekend, on 15 and 16 January, customers must enter ‘GSTFREE’ in the ‘coupon code’ box at the checkout on eStore.com.au.
To remain compliant with the Australian Taxation Office, eStore.com.au will pay the GST on customers’ behalf by discounting the invoice by the GST amount. For businesses purchasing products on eStore.com.au, GST is still paid so that businesses can claim the GST amount on the invoice.
You are quite right about being careful when you buy online, the 20% saving can sometimes come back and bite you when it comes to faulty or wrong goods arriving. Trying to get a refund and having to return goods and wait for new goods can by very painful and hardly worth the effort.
Customers are smarter and why they should shop around for the best deals and service.
Our personal experience in reselling a US service is that most Australians are happy to pay slightly more to buy in Australia and know that they can get local service during Australia local time.
On the occasion that we do get asked why we are more expensive that the US, we explain that it is our buy rate, exchange rates that aren’t always this good (remember 12 months ago) and GST that determine price.
Great offer by estore get out there and support them.
Dear Sir/ Madam,
This is a step forward but unfortunately the retailers of Australia have not grasped the “true” fight for the online market.
GST is not the issue as when purchased overs you are paying state and federal taxes say in he USA. Therefore GST is in effect being paid but just not Australian.
When a purchase is made in the US say at Amazon, the goods are deliver within say 2 days, I order on Friday Australian time and DHL are trying to deliver on Monday morning in Brisbane.
I do the same order say from Harvey Normans on line it will take till Thursday as in cases they do not have the stock and must wait till it comes in to be dispatched.
Price, the margins of the walk in retail store and the online store are different by the very nature, therefore while margins are there you do not need to pay for the customer service, shop fronts etc as you don’t need it you have already done your research and you are a buyer already.
I will use an example
A toner carriage can cost $353 in Harvey Normans, $266 online with another online store in Australia and $121 USD plus shipping from Amazon or several other US stores which do you buy? he Australia store will not deliver before Thursday and the US will deliver by the Monday.
I am not saying that this is the case, apple controls it’s price as do many other brands even on the internet.
Australian retailers still do not understand Online stores in most cases!
Regards,
Brian Russell