What are the key differences between selling on Amazon Australia and Amazon USA?

TL;DR

• Amazon USA has a much larger customer base and advanced tools but comes with high competition and ad costs.

• Amazon Australia offers lower competition and ad costs, making it easier for new sellers to enter and test products.

• Fulfilment in the US is faster and more reliable due to a larger FBA network, while AU has limited reach and slower delivery times.

• Buyer behavior differs: US shoppers buy more frequently and in bulk; Australian buyers focus on value and make more careful decisions.

• Programs like Vine and advanced dashboards are fully available in the US, while AU still has limited seller support and tool access.

• An Amazon consultant can help you decide the right marketplace and guide your setup, listings, and compliance strategy.

Did you know that 54% of Australian shoppers turn to Amazon as their go-to online store, compared to 40% in the US? This growing dominance of Amazon in Australia presents a unique opportunity for sellers, but it also raises a key question: Should you focus on Amazon AU or tap into the larger US market?

While Amazon has made impressive strides across the globe with local marketplaces in countries like India, Japan, Germany, and Australia, choosing the right market to invest your time and resources in can be challenging. 

As an Australian seller, it's essential to understand how Amazon AU stacks up against Amazon US in terms of competition, fulfilment options, advertising costs, buyer behaviors, and more.

This blog dives into the factors that matter most when selling on Amazon Australia. By the end, you’ll have a clear understanding of which marketplace aligns best with your goals and where your brand can thrive faster. 

Let's explore your options!

Key differences between selling on Amazon Australia and Amazon USA

1. Marketplace maturity and competition

Size of customer base

Amazon USA is one of the largest e-commerce platforms in the world, with over 150 million Prime members and millions of non-Prime shoppers. The volume of daily traffic is unmatched, offering sellers huge potential for exposure and sales. 

In contrast, Amazon Australia has a much smaller customer base. While it is growing steadily, it still cannot compete with the scale of the US marketplace. However, this smaller audience can work to your advantage if approached strategically.

Product saturation and niche opportunities

In the US, most categories are already crowded. High competition means it is harder for new sellers to rank and get noticed. You will likely be up against brands with thousands of reviews and deep advertising budgets. 

On Amazon Australia, many categories remain underserved. This gives sellers a chance to identify niche gaps and enter the market with less resistance.

How early-stage Amazon AU allows new sellers to stand out

Amazon AU is still in its early stages. That means more room to grow, better visibility for new listings, and less aggressive competition. Sellers who join early can build strong positioning before the platform becomes more crowded. This approach not only allows you to stand out but also positions your product strategically for a successful Amazon product launch. 

2. Fulfilment and logistics infrastructure

Fulfilment network 

When it comes to fulfilment, Amazon USA is miles ahead in terms of scale and efficiency. The US has a massive network of over 100 fulfilment centers, covering almost every major region. This means faster delivery times, better inventory management, and more flexibility for sellers using FBA.

Customers in the US have come to expect one or two-day shipping, which sets a high bar for service. The following section provides a detailed comparison of the fulfillment aspects for Amazon USA and Amazon AU, allowing for a clearer understanding of the differences between the two networks.

In comparison, Amazon Australia has a much smaller fulfilment network. FBA is available, but the number of warehouses is limited. As a result, delivery timelines can stretch longer, especially for buyers in regional areas. This can affect customer satisfaction and sometimes increase return rates if expectations are not met.

FBA warehouse availability and delivery timelines

Warehouse availability in the US also allows sellers to scale faster and offer products to a broader audience with reliable delivery. In Australia, while FBA is growing, it still lacks the reach and speed of the US model. For sellers, this means planning is key. In the US, you can rely more on Amazon’s network. 

In Australia, you may need to manage stock more carefully and consider third-party logistics to maintain a smooth customer experience.

3. Advertising cost and CPC trends

Ad competitiveness and CPC differences

Advertising on Amazon USA is far more competitive than on Amazon Australia. In the US, cost-per-click (CPC) rates are high due to a crowded seller space and aggressive bidding. Sellers often compete in tight margins, pushing ad costs up just to stay visible. 

On the other hand, Amazon Australia has much lower CPC rates. Fewer sellers mean less bidding pressure, allowing you to get your product in front of shoppers without overspending.

Budget planning for Sponsored Products in AU vs US

If you are advertising in the US, you need a larger ad budget from day one. You will likely need to run multiple campaigns, test keywords aggressively, and adjust often to get traction.

In Australia, ad campaigns are more cost-efficient. A smaller budget can go a long way, and fewer competitors make it easier to dominate your niche. It is ideal for testing Sponsored Products at a lower cost.

So, for new sellers, Australia often offers a better return on ad spend (ROAS). You spend less and reach more people faster. In contrast, the US may give you volume, but it comes at a higher cost and slower break-even point.

With over 5,000 Amazon accounts successfully managed, we are the leading Amazon marketing agency in Melbourne, offering expert strategies to navigate advertising costs and CPC for your  AU marketplaces.

To illustrate the process, let’s walk through a simple example. The following PPC planning structure will help you analyze, compare, and allocate your advertising budget effectively when selling on Amazon Australia versus the USA.

With a clearer understanding of budget planning differences between Amazon USA and Australia, the following framework provides a practical approach.

For instance, consider an initial budget of approximately AUD $1,500 (equivalent to around USD $1,000) allocated over the first 90 days.

Here’s the complete framework to help you analyze and plan effectively.

What does this mean to you:

• Lower starting CPC: They can acquire profitable data at a lower cost than USA.

• Fewer competitors per keyword: Easier to index for relevant long-tail searches.

• AU audience is value-driven, not price-driven:  Focus on clear product benefits, local keywords (e.g., "baby pram organiser AU").

• Longer optimization cycles: Less daily sales volume means decisions are made on weekly or 14-day data, not daily.

4. Buyer behaviour and purchase frequency

Average order size, frequency, and impulse-buy culture
Shoppers in the US tend to buy more frequently and often make impulse purchases, especially when deals or fast shipping are involved. The convenience of same-day or next-day delivery plays a big role in driving frequent orders. 

In Australia, buyers are more measured. Orders happen less frequently, and shoppers take more time to compare options and reviews before checking out. Impulse buys are less common, which means product pages need to build more trust and value up front.

Local preferences in AU vs bulk buying in the US

In the US, bulk buying is a common habit, especially for household goods, pantry items, and personal care. Buyers like getting more value per dollar. 

In Australia, the focus leans toward quality and value for money, but not necessarily bulk quantities. Shoppers often prefer smaller, well-reviewed items that meet specific needs.

Product categories that perform differently in each region

Home improvement, tech gadgets, and supplements do well in the US. In Australia, categories like eco-friendly products, pet supplies, and niche health items are seeing stronger growth. Knowing what resonates locally helps tailor your listings for better performance in each market. 

This is outlined in detail in the following section. 

5. Prime membership and delivery expectations

Prime penetration in AU vs US

Amazon Prime is a household name in the United States. With over 200 million global members, most of them in the US, customers there are used to fast, free shipping and other perks like Prime Video and early access to deals. This deep Prime penetration means US buyers expect their orders to arrive quickly, often within one or two days.

In Australia, Prime membership is still growing. Many shoppers are not yet fully used to the benefits of Prime, and fast delivery is not always seen as a must-have. While the number of Prime users is rising, the expectations around speed and convenience are still developing.

How customer expectations shape fulfilment strategy

In the US, sellers must prioritize speed. This means using Fulfilment by Amazon (FBA), having enough stock, and offering Prime-eligible shipping to stay competitive.

In Australia, there is more flexibility. Since expectations are still building, sellers can experiment with different fulfilment models. FBA is still helpful, but local shipping partners and hybrid fulfilment options can also work well.

Understanding these differences helps shape smarter fulfilment decisions based on what customers expect in each market.

6. Product compliance and tax differences

GST in Australia vs Sales Tax/VAT handling in the US
In Australia, GST is straightforward. If your business earns over the threshold, you must register for GST and include it in your pricing. Amazon collects and remits GST on your behalf in most cases, which makes compliance easier.

In the US, sales tax is more complex. Each state has its own rules, rates, and tax obligations. Some states require marketplace sellers to register and file returns, even if Amazon collects the tax. VAT rules may also apply to international sellers, adding more layers.

Regulatory landscape for new listings and restricted categories

Amazon USA has strict listing policies, especially in gated or restricted categories. Approval often requires detailed documentation and lab testing.

Amazon Australia has similar rules, but enforcement tends to be more relaxed, especially for new sellers. Still, compliance is key.

Here’s a clear comparison of key tax differences between Amazon USA and Amazon Australia for sellers:

What this means for you:

• Simplified compliance: One unified 10% GST, via ABN and Business Activity Statements (BAS), is all you need.

• Import compliance handled by Amazon: GST on imports under LVIG is automatically collected and remitted.

• Export-friendly: No GST on exports to customers outside Australia.

• Tax credits: Claim input credits to offset your GST liabilities.

7. Brand building and review culture

Differences in how customers leave reviews

In the US, Amazon customers are more active when it comes to leaving reviews. The culture around feedback is well-established, and buyers often rely on reviews before making a purchase. This creates a strong cycle: more reviews bring more sales, and more sales bring even more reviews.

In contrast, Australian customers are more reserved. Many buyers receive the product and never return to leave a review, even when satisfied. This makes it harder for new sellers to build social proof. While Amazon AU does offer programs to request reviews, engagement is still developing.

Brand Registry visibility and engagement across regions

Amazon Brand Registry works well in both markets, but the visibility and engagement differ. In the US, tools like A Plus Content, brand stores, and Sponsored Brands ads get strong traction due to the large traffic volume. 

In Australia, the same tools exist, but user engagement is lower. However, this also means less competition for attention. For sellers looking to build brand authority, the US offers faster growth, while Australia provides a quieter space to build slowly and steadily.

8. Support, tools, and marketplace programs

Available seller programs in AU vs US (e.g., Vine, Transparency)

Amazon USA offers a wide range of seller programs like Vine for early reviews, Transparency for product authenticity, and Brand Registry tools with full access. These programs help boost credibility and protect brands from counterfeit issues. 

In comparison, Amazon Australia has limited availability. Vine is still rolling out, and some programs like Transparency are not fully functional or widely used.

Seller Support responsiveness and regional resources

Seller support in the US is well-established with faster response times and broader knowledge across issues. Amazon Australia’s support is still developing. Response times may be slower, and some issues take longer to resolve due to limited regional resources. For AU sellers, patience and persistence are often key when dealing with support.

Final thoughts

Selling on Amazon can be a smart move, but choosing between Amazon Australia and Amazon USA makes all the difference. The US marketplace gives you scale, advanced tools, and a huge customer base, but it also brings heavy competition and higher costs.

On the flip side, Amazon Australia offers easier entry, lower advertising costs, and growing opportunities for niche products, though with fewer programs and a smaller customer pool. Understanding these key differences helps you build a strategy that fits your goals and resources.

If you're still unsure which direction to take, speaking with an experienced Amazon consultant can save you time, money, and frustration. They can guide you through product selection, listing strategies, and compliance steps based on your business needs.

With the right support, you can make smart moves and scale confidently no matter which market you choose.