Amazon FBA Australia vs. USA: Key Differences Every Seller Should Know

TL;DR

• Amazon USA has a larger market but higher competition, while Amazon Australia offers growth potential with less rivalry.

• Sellers in the USA need strong differentiation, competitive pricing, and aggressive advertising to succeed.

• Shipping is cheaper and faster in the US, while Australia’s fulfillment network can lead to longer delivery times.

• Product demand and pricing vary by region—what works in the US may not perform well in Australia.

• Amazon Australia has simpler tax rules, while US sellers must navigate state-specific tax laws and import duties.

• An Amazon FBA expert can help you decide the best marketplace based on demand, costs, and competition.

Expanding your business with Amazon FBA can be a game-changer, but selling in different marketplaces comes with unique challenges. Many sellers wonder whether they should launch in Australia or the USA. While both markets offer great opportunities, key differences in demand, competition, and logistics can impact your success.

Why Amazon FBA appeals to sellers

Amazon FBA (Fulfillment by Amazon) enables you to leverage a powerful logistics network, eliminating the headaches associated with warehousing, shipping, and customer service. With FBA, you can:

• Offer fast, often free expedited shipping to your customers—boosting satisfaction and trust

• Start small, sending limited inventory to Amazon warehouses and scaling as your sales grow

• Save time and energy by letting Amazon handle storage, returns, and support

• Display the Amazon Prime logo on your listings, making your products more attractive to shoppers

For sellers looking to grow their business rather than get bogged down in logistics, FBA provides a streamlined, pay-as-you-go solution. By leveraging Amazon’s infrastructure, you can focus on sourcing products, optimizing listings, and expanding your reach—whether in the USA, Australia, or both.

If you're considering selling in either country, this guide will help you understand the main differences between Amazon FBA Australia and the USA.

If you're considering selling in either country, this guide will help you understand the main differences between Amazon FBA Australia and the USA.

Market size and demand

One of the biggest factors to consider when choosing between Amazon FBA Australia and the USA is the size of the market. The United States has Amazon’s most established marketplace, with millions of active shoppers purchasing daily. This means higher sales potential, as more people are searching for and buying products. However, with this demand comes intense competition. Many sellers—both big brands and independent entrepreneurs—are already well-established, making it harder for new sellers to break in without a solid strategy.

On the other hand, Amazon Australia is still in its early stages of growth. While it does not have the massive customer base of the US, it offers sellers a unique advantage: lower competition. With fewer sellers fighting for visibility, new brands have a better chance of gaining traction and establishing themselves as market leaders. As the platform continues to expand, there are numerous untapped opportunities for those who enter early.

For new sellers, launching on Amazon Australia might be a better option due to the reduced competition. It allows you to build brand awareness and gain sales without being overshadowed by large-scale competitors. However, if your goal is rapid scalability and higher revenue potential, the US remains the strongest choice.

Amazon’s Growth in the Australian E-Commerce Landscape

If you’re curious about how Amazon is expanding down under, the trend is clear: Amazon’s footprint in Australia’s e-commerce market is set for impressive growth. Industry forecasts suggest that by 2026, Amazon could account for one in every five online purchases in Australia. This rapid expansion is fueled by increasing consumer adoption and broader product offerings, with net sales climbing steadily year after year.

For context, recent years have seen Amazon’s total sales in Australia rise significantly, thanks to more shoppers joining Amazon Prime and the platform’s continued investment in logistics and customer service. As Australian customers become more accustomed to shopping online, and as Amazon strengthens its presence, we’re likely to see even more market share shift in Amazon’s favor.

Competition level

Amazon USA is a highly competitive marketplace, with thousands of sellers across every product category. Since the platform has been around for decades, many established brands and experienced sellers dominate search results. This makes it difficult for new sellers to gain visibility without investing heavily in advertising, pricing strategies, and optimized listings. To compete successfully in the US market, sellers need a well-planned approach that includes:

• Strong product differentiation – Your product must stand out, whether through unique features, better quality, or superior branding.

• Optimized listings – High-quality images, compelling descriptions, and keyword-rich titles are essential to rank higher in search results.

• Competitive pricing – With so many sellers, customers often choose products based on price. Dynamic pricing strategies can help you stay competitive.

• Aggressive marketing strategies – Running Amazon PPC campaigns, leveraging social media, and using external traffic sources can boost sales.

Beyond simply listing your products, success in a competitive marketplace like the US starts with careful attention to detail when setting up your catalog. To make your listings eligible for Fulfillment by Amazon (FBA), add products to your Amazon account and specify which inventory you want fulfilled through FBA. If you already have products listed, navigate to the Inventory section in Seller Central, choose Manage All Inventory, and use the Edit function to select “Change to Fulfilled by Amazon.”

Whether you’re adding new products or converting existing listings, double-check your product dimensions and details to avoid inventory issues later. Taking the time to get your listings right not only prevents costly mistakes but also helps your products stand out from competitors from day one.

In contrast, Amazon Australia is still growing, with fewer sellers and less competition. This presents an opportunity for businesses to establish their brand presence early. Since fewer sellers are bidding on ads and keywords, advertising costs are lower, making it easier to gain visibility without overspending. Sellers who enter the Australian market now can position themselves as leading brands before the competition increases.

In contrast, Amazon Australia is still growing, with fewer sellers and less competition. This presents an opportunity for businesses to establish their brand presence early. Since fewer sellers are bidding on ads and keywords, advertising costs are lower, making it easier to gain visibility without overspending. Sellers who enter the Australian market now can position themselves as leading brands before the competition increases.

Fulfillment and shipping costs

Logistics play a big role in choosing between FBA Australia and the USA.

• In the USA, Amazon has an extensive fulfillment network, meaning fast delivery and lower shipping costs within the country. However, international sellers may face challenges with customs, taxes, and high shipping fees.

• In Australia, the fulfillment network is smaller, and the country’s large geographical area can lead to longer delivery times and higher shipping costs for remote areas.

If you're selling in Australia, consider how logistics might affect your product pricing and delivery speed.

Understanding FBA Fees

When using Fulfillment by Amazon (FBA), it's also important to factor in the specific costs associated with the service. FBA operates on a pay-as-you-go model, so your expenses scale with your sales and inventory.

The main FBA costs include:

• Fulfillment fees: These cover picking and packing your products, shipping orders, handling returns, and providing customer service to buyers.

• Monthly inventory storage fees: Amazon charges you a monthly fee for storing your inventory in its fulfillment centers. The cost varies depending on the time of year and how much space your products occupy.

• Long-term storage fees: If your products sit in Amazon’s warehouse for over a year, you'll be hit with additional long-term storage fees on top of the standard monthly charges.

• Disposal order fees: Should you need Amazon to dispose of unsold or unwanted inventory, there’s a disposal fee per item.

• Removal order fees: If you ask Amazon to return your inventory to you, removal fees are charged for each unit shipped back.

To estimate your true profitability, take advantage of tools like the Amazon FBA revenue calculator. This helps you weigh all fulfillment and shipping costs against your expected revenue, so you’re not caught off guard by hidden fees.

Factoring in these logistics and fee structures early on will help you make better decisions about which marketplace best suits your products—and your bottom line.

Shipping products to Amazon fulfilment centres in Australia

Once you’ve sorted out your logistics strategy, the next step is getting your inventory into Amazon’s fulfilment network Down Under. If you’re working with suppliers in China (as many sellers do), there are flexible options to keep the process streamlined and efficient.

Most established suppliers can handle prep work like labelling, packing, and getting your products ready to meet Amazon Australia’s specific requirements. You can coordinate with your supplier to ship inventory straight to an Amazon fulfilment centre in Australia—this can save time and minimize additional handling.

For sellers looking to cover more ground, it’s possible to split shipments and send stock to multiple fulfilment centres across the country. This helps ensure customers, even in remote areas, can get their orders faster and more reliably.

To speed things up, some freight forwarders and logistics companies even offer direct air shipping services from China to Amazon’s fulfilment centres in Australia. These services are designed to help get products on the shelves quickly, keeping your listings in stock and your customers happy.

Carefully discuss your shipping preferences with your supplier and choose a solution that balances speed, cost, and coverage—especially if you’re aiming for Prime-level delivery standards.

Shipping from China: The Amazon SEND Advantage

If you’re sourcing products from China, managing inventory and shipping logistics can feel like trying to solve a Rubik’s cube blindfolded. Luckily, Amazon has rolled out a nifty tool to simplify the process: Amazon SEND.

This service enables you to ship your products directly from your Chinese supplier straight to Amazon’s Australian fulfillment centers by air. No need for complicated handoffs or bouncing your inventory around—SEND streamlines the entire logistics chain. This means your goods reach Australia faster, letting you get your products in front of Australian customers with less delay.

What makes it even more convenient is that many Chinese suppliers are already familiar with preparing products according to Amazon’s FBA requirements. They can handle labeling, packing, and even splitting shipments to send to multiple fulfillment centers across Australia—which can help speed up delivery times for your customers nationwide.

By using Amazon SEND, you cut down on transit times and reduce the headaches associated with international shipping, giving you a competitive edge in the ever-evolving marketplace.

FBA vs. FBM: Which Fulfillment Method Suits You?

When it comes to actually getting products into customers’ hands, Amazon sellers have two main options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). Each approach comes with its own distinct pros and cons—so let’s break down what sets them apart.

Fulfillment by Amazon (FBA) means you send your inventory directly to Amazon’s warehouses. From there, Amazon takes care of the heavy lifting:

• Storing your products

• Picking, packing, and shipping each order

• Handling customer service, returns, and refunds

This hands-off approach is a major time-saver, giving you more bandwidth to focus on scaling your business rather than day-to-day logistics. Many sellers find FBA especially helpful for offering fast, Prime-eligible shipping—attractive perks for customers.

Fulfillment by Merchant (FBM), on the other hand, puts you in the driver’s seat. You’ll be responsible for storing your inventory, processing orders, packing, shipping, and handling returns yourself (or through your own chosen logistics partner). This method often appeals to sellers who want more direct control over their operations or deal in products that are bulky, fragile, or highly customized.

In summary:

• FBA: Amazon takes care of fulfillment and customer service in exchange for storage and handling fees.

• FBM: You manage inventory and shipping, retaining full responsibility for the customer experience.

Deciding between the two usually comes down to your product type, shipping volume, and how much control or convenience you’d like in your fulfillment process.

Prepping, Labelling, and Packing Your Products for FBA

Before your products reach an Amazon fulfillment center, you'll need to make sure they're prepped, labelled, and packaged according to Amazon's requirements. This step is crucial—cutting corners here could result in your inventory being rejected or delayed, which no seller wants.

Proper product prep starts with understanding Amazon’s guidelines, which cover how items must be packaged based on their category. Fragile goods may require bubble wrap, while liquid items must be double-sealed to prevent leaks. Poly bags are a staple for loose goods or fabric products, and remember: barcodes (such as FNSKU) need to be visible and scannable on every unit. If you miss the mark with labelling, Amazon could refuse the shipment outright or charge extra for relabelling.

Keep these best practices in mind:

• Follow packaging guidelines for your category: Each product type has its own requirements—check Amazon’s official documentation for details.

• Label every unit correctly: Use the right barcodes and place them on a flat, easily scannable surface.

• Package securely: Use sufficient inner packaging to minimize movement and damage during transit.

• Check with your supplier: Some manufacturers, especially those based in China like Alibaba suppliers, can handle prep and labelling for you—just be sure they understand Amazon’s strict standards.

• Inspect before shipment: Double-check everything before sending your shipment to the fulfillment center.

Taking the time to get prep right not only prevents costly mistakes but also ensures your products reach customers in perfect condition—building trust and reducing returns.

Product selection and pricing

Not all products perform the same way in different marketplaces. What sells well in the USA may not have the same demand in Australia due to differences in customer preferences, buying power, and trends. The US marketplace supports a wider variety of products, but the intense competition forces sellers to keep prices low to stay competitive. Margins can be tight, especially for highly saturated categories.

In contrast, Amazon Australia has lower demand for certain products, but sellers have more flexibility with pricing. Since there are fewer competitors, you don’t always have to engage in aggressive price wars. However, researching market trends is essential to avoid listing products with little to no demand.

Key factors to consider when choosing products for each market:

• Consumer demand – Check what products are trending in each region.

• Competition level – Avoid oversaturated categories in the USA and low-demand ones in Australia.

• Pricing strategy – Competitive pricing is crucial in the US, while in Australia, you may have more room to set higher prices.

Working with an Amazon selling specialist can help you analyze the best products for each marketplace, ensuring a profitable and data-driven approach.

Calculating FBA Profitability

To get a clear picture of your potential profits as an Amazon FBA seller, it’s important to crunch the numbers before you send your products in. The is a handy tool to help you estimate all fees involved—like fulfillment costs, referral fees, and shipping expenses. Simply input your product details, and the calculator will break down the costs per sale versus your selling price.

By comparing your total expenses against your expected sales price, you can assess whether a product is worth pursuing or if you need to adjust your pricing strategy. This step ensures you’re not caught off guard by hidden fees and helps you focus on items that deliver the best return on investment.

Account setup and compliance

Setting up an Amazon FBA seller account audit is crucial to ensure compliance with Amazon’s policies and local regulations. While the registration process is similar in both the USA and Australia, tax and legal requirements differ.

Key differences in compliance: Amazon USA:

• Sellers must comply with state-specific tax laws, which vary by location.

• International sellers must navigate import regulations, including duties and shipping restrictions.

• Sales tax collection and reporting depend on the state, making compliance more complex.

Amazon Australia:

• Sellers must pay a Goods and Services Tax (GST) of 10% on most sales.

• Registering for an Australian Business Number (ABN) is mandatory for tax compliance.

• Fewer legal hurdles for international sellers compared to the USA.

Failing to meet compliance requirements can lead to delays, penalties, or account suspensions. To ensure smooth operations, sellers should review tax regulations carefully and consider consulting experts for proper guidance.

Steps to Set Up Amazon FBA in Australia

Successfully launching your FBA business in Australia goes beyond compliance—understanding the account setup process can help you avoid costly mistakes and streamline your operations.

1. Register as an Amazon Seller
If you’re new to Amazon, start by creating your seller account. Log in to Seller Central, click the gear icon, and select “Account Info.” From there, navigate to “Manage the Seller Account Information” and opt to register for FBA. Check Amazon’s requirements for sending inventory to FBA before proceeding.

2. Create or Convert Product Listings
Add your products to your Amazon account and specify which items should be fulfilled through FBA. If you already have products listed, go to Inventory in Seller Central and select “Manage All Inventory.” Use the Edit button next to an item and choose “Change to Fulfilled by Amazon.” Double-check product dimensions to prevent inventory issues later on.

3. Prep, Label, and Pack Your Products
Amazon enforces strict guidelines for prepping, labeling, and packing products sent to their fulfillment centers. Incorrect labeling can result in rejected deliveries, so follow the FBA prep and label requirements carefully. Many Chinese suppliers can handle this step for you, ensuring products are ready for shipment.

4. Ship Inventory to Amazon Fulfillment Centers
If sourcing from China, your supplier may be able to prepare, label, and ship products directly to an Amazon FBA center in Australia. You can also split inventory between different fulfillment centers across the country to speed up delivery for customers in various regions. Some suppliers are familiar with Amazon’s shipping requirements, which can simplify the process.

Amazon’s recently launched SEND service allows you to ship products from China directly to fulfillment centers in Australia by air, providing an even faster way to get your goods into the country and to your customers.

Taking the time to set up your account correctly and prepare your inventory according to Amazon’s guidelines helps you avoid costly errors and keeps your business running smoothly. With compliance and logistics in place, you’ll be well-positioned to start selling successfully in either—or both—marketplaces.

Risks of Skipping Amazon Australia

Choosing not to list your online store on Amazon Australia comes with missed opportunities for growth and visibility. With Amazon’s marketplace continuing to expand and the majority of its sales driven by third-party sellers—many of them small and medium businesses—opting out means letting competitors capture customers who shop exclusively on the platform.

• Lost Sales Potential: By ignoring Amazon Australia, you essentially leave a significant share of potential buyers untapped, especially as more Australians embrace online shopping.

• Brand Awareness: Being absent from Amazon reduces your exposure. Shoppers ready to buy may never encounter your products if they're searching directly within Amazon’s ecosystem.

• Competitive Disadvantage: While early movers can establish themselves as category leaders, those who delay risk playing catch-up as the market matures.

For many businesses, Amazon isn’t just another sales channel—it’s an engine for growth and brand recognition in a rapidly evolving e-commerce landscape.

Should you sell in Australia or the USA?

The right choice depends on your business goals. If you want access to a large customer base and have the resources to compete, the US is a great option. If you prefer a less competitive market with growth potential, Australia offers exciting opportunities.

Consulting Amazon FBA experts can help you navigate these differences and choose the best marketplace for your business. Whether you sell in the USA, Australia, or both, understanding these key differences will set you up for success.