An online store doesn’t stop at the border. Once a site takes orders, people in other countries can find it and buy. That can open new markets without a shopfront or a sales team overseas. It also brings tax, shipping and legal questions that a purely local store never faces.
This post looks at the main points for an Australian business selling online to overseas customers. It covers market choice, GST on exports, customs paperwork, brand protection and service. The aim is to help you decide whether international orders suit your business before you switch them on.
Start with a plan, not a shipping button
It is tempting to open the checkout to every country and see what happens. A better approach is to treat overseas sales as a small export project. The WA Small Business Development Corporation (SBDC) advises getting advice on what is involved, weighing the risks and checking whether exporting is financially viable. It also suggests researching your chosen markets before you commit.
Research for an online store can start with your own data. Look at where existing visitors and enquiries come from, and which products draw overseas interest. A good grasp of SEO basics will help you read that traffic and see which search terms bring people in. From there you can pick one or two markets to test, rather than trying to serve the whole world at once.
Austrade support for new exporters
The Australian Trade and Investment Commission, known as Austrade, offers help for businesses looking overseas. Its guide to exporting covers export strategy, pricing, market research, risk, finance, freight, getting paid and legal issues. Austrade also runs the Export Market Development Grants scheme, which has its own eligibility criteria. It publishes market profiles that explain local culture and customs in different countries too.
GST and overseas sales
GST works differently for exports. The ATO says goods are free of GST if the supplier exports them within 60 days of the earlier of receiving any payment or issuing an invoice. Where goods are paid for in instalments, the 60 days run from the final instalment. If you need more time, you can ask the ATO for an extension through Online services for business. The full rules are on the ATO page on exports and GST.
Export sales still count for registration. The ATO says you include export sales connected with Australia in your GST turnover, even though they are free of GST. A business must register once its GST turnover reaches $75,000, or $150,000 for a not for profit organisation. If you are registered, you can still claim credits for the GST in the price of purchases you use to make exported goods.
Services follow different rules. A service can be free of GST when the recipient is outside Australia and the service is used outside Australia. The ATO notes it is not free of GST if the service is provided in Australia, even when the customer is overseas. If you sell online services or consultations, check which side of that line each one falls on.
Customs paperwork and restricted goods
Low value parcels carry lighter paperwork on the Australian side. The Australian Border Force (ABF) says goods, including mail items, must be reported on an Export Declaration if they are valued at more than AUD2,000. A declaration is also needed for goods that need an export permit, whatever their value. The government controls the export of certain goods, and the ABF keeps a prohibited goods list you can search.
The destination country has its own rules too. Import duties, local taxes and banned products vary from place to place, and they can change. Check the rules for each market you plan to ship to before you list products for sale there. Customers appreciate being told upfront about any charges they may pay on arrival.
Shipping, pricing and service
International shipping costs can vary a lot by weight, size and destination. Show the delivery cost and an honest timeframe before checkout so buyers know the full price. Larger shipments may involve Incoterms, the standard trade terms published by the International Chamber of Commerce. The SBDC notes these are important when quoting delivery prices for goods sent by pallet or container load.
After sales service is easy to forget. The SBDC suggests planning how you will look after clients in their time zone and deal with any local issues. For a small store that might mean setting reply times, offering a returns address or keeping a clear online help page. A good returns process can matter as much to an overseas buyer as the price.
Protecting your brand overseas
An Australian trade mark only protects you in Australia. Queensland Government business guidance notes that no worldwide trade mark registration is available. Each country registers its own marks, so you either apply in each country or file under the Madrid Protocol. A Madrid application is a single application in English to IP Australia, and you then nominate the countries you want. Its registering a trade mark overseas page suggests covering the countries where you will sell, export or license, and a trade mark attorney can file the application for you.
Marketing to buyers in another country
Overseas buyers find stores the same way local ones do, through search, ads and social media. Content that earns links from around the world can help, and the skyscraper technique is one way to build that kind of page. Paid search lets you test a market quickly before you invest in content for it. Our post on how AdWords marketing can benefit your business explains the basics of paid search.
Language, currency and spelling also shape how a store feels to a visitor. A site that shows prices in the buyer’s currency can feel more familiar, even if payment still settles in Australian dollars. Weigh these changes against the cost of keeping them up to date. The reach of online channels is a big part of the case made in traditional marketing vs internet marketing, and selling overseas puts that reach to work.
Frequently asked questions
Do I charge GST to overseas customers?
Goods you export within the ATO’s 60 day window are free of GST. Australian customers still pay GST as normal if you are registered. The ATO export page includes a worked example for an online seller with a mix of local and overseas sales.
Do I need an export declaration for every parcel?
Not always. The ABF requires an Export Declaration for goods worth more than AUD2,000, or goods that need a permit, among other cases. Goods under that value, including mail items, are generally exempt unless another rule applies.
Does my Australian trade mark cover overseas sales?
No. Trade marks are registered country by country, and there is no worldwide registration. You can apply in each country separately or use the Madrid Protocol through IP Australia.
Is there government help for new exporters?
Yes. Austrade offers a guide to exporting and market profiles, and it runs the Export Market Development Grants scheme. In Western Australia, the State Government also runs trade and investment offices overseas.
This article is general information only and is not tax or legal advice. Rules change, so check current guidance with the ATO and speak with a registered tax agent or qualified lawyer about your own situation.