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.

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. Since the platform is still expanding, there are plenty of 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.

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.

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.

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.

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.

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.