Tipped to encourage shopping local.

The federal government’s decision to apply GST to low-value items worth under $1,000 imported to Australia from international websites may convince more Australian consumers to shop local, according to new research from payments solution provider, Adyen.

The research found that two out of three Australians will now think twice about buying fashion, electronics or furniture from international websites and instead shop local.

Three out of four Australian shoppers currently order goods from international websites, with 83 per cent of those aged under 35 looking to overseas retailers for their purchasing options. However, less than half (41%) expressed no preference towards shopping locally or overseas. Most Australians (89%) have abandoned an online order due to shipping and handling costs.

Adyen country manager for Australia and New Zealand, Michel van Aalten said, “We were surprised to see that more than half of those surveyed would think twice about shopping with international retails due to the new GST.

“With a broader range of goods that shoppers can often access, the lower prices and the positive customer service many of these brands provide, we did anticipate less of an impact. This would indicate Aussies continue to see total cost as a key factor in purchasing decisions.

“Our research suggests that cost is a factor for Australians when it comes to online shopping and the new GST will have an impact on their shopping habits. What’s more surprising is that more than half of those surveyed weren’t even aware that this additional tax is being introduced next month.

“Once the tax is introduced, and consumers start to feel the pinch of an extra 10% in their shopping basket, the research suggests we will see a shift in consumer spending habits, looking for more value and choice in Australia.”