Amazon Retracts Geoblock In Australia, Strengthens Position
Zacks Investment Research | Nov 22, 2018 09:06PM ET
In order to bolster presence in the e-commerce market of Australia, Amazon (NASDAQ:AMZN) has revoked its decision of obstructing Australians from shopping from its U.S. e-commerce site.
Notably, the decision came into effect in July this year as a result of imposition of 10% GST on imported online goods. Due to this tax regulation, the Australian customers were getting redirected to the company’s local site Amazon.com.au while searching products on U.S. site.
This step of Amazon only underscores its commitment to the customers. Following a slew of bad reviews by customers related to their shopping on the country’s local site, the e-commerce giant removed the geoblock for Australian shoppers.
The latest move is likely to aid the company in delivering enhanced shopping experience by expanding its product offerings. The customers will now again be able to access the wide range of quality products available on Amazon.com, the U.S. site.
This in turn will boost the customer base of the company. Further, the increasing exposure to Australia bodes well for the company’s holiday season initiative and is likely to drive its holiday sales.
Coming to the price performance, shares of Amazon have gained 29.7% on a year-to-date basis against the Amazon.com, Inc. Quote
Strengthening Global Footprint
Amazon’s continued focus toward strengthening its presence in the global online retail market will continue to aid its business growth.
Apart from Australia, the company has recently made its foray into Turkish e-commerce space. Reportedly, Amazon will offer products in 15 categories, including books, electronics, tools, toys and baby goods, from over 1,000 Turkish businesses to customers across the country.
Further, Amazon introduced the Hindi – the most widely spoken regional language of India – version of its online shopping website and application for mobile to make shopping easier for customers in India, in turn bolstering its footprint the country.
Reportedly, the company is gearing up to make its foray into the clothing, accessories and footwear market of Brazil via its Brazilian marketplace. The latest move will strengthen its footprint in Brazil as well as Latin America.
We believe Amazon’s expanding global e-commerce presence along with its vast seller base, robust product offering, distribution strength, strategic acquisitions and partnerships will continue to aid its dominant position in the e-commerce market.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are TripAdvisor (NASDAQ:TRIP) and Stamps.com (NASDAQ:STMP) . While TripAdvisor flaunts a Zacks Rank #1 (Strong Buy), Stamps.com carries a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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