Amazon Australia does not look like it did two years ago. Fewer new sellers joined the platform in 2025 than any year in the past decade. At the same time, the brands already there are fighting harder for every sale. If you sell on Amazon.com.au, or you are thinking about it, 2026 asks for a sharper approach. This guide breaks down what actually changed, what it means for Australian brands, and the exact moves that keep a store competitive this year.
A Quick Snapshot of Amazon Australia in 2026
Online shopping in Australia keeps climbing. Australians spent close to 65 billion dollars online in the year to July 2025, and that figure covers almost 15 percent of all retail sales in the country. Amazon.com.au sits inside a market that is still growing, even as individual seller numbers shrink globally.
Here is a simple snapshot of where things stand right now.
| Metric | 2026 Figure | What It Means for Sellers |
|---|---|---|
| New Amazon sellers worldwide (2025) | About 165,000, down 44% from 2024 | Fewer newcomers, less noise, but higher expectations from existing accounts |
| Active Amazon sellers worldwide | Roughly 1.65 million, down from 2.4 million in 2021 | Weaker sellers are exiting; the remaining ones invest more per listing |
| Third party share of units sold | Around 61 to 62 percent | Independent brands still drive most of what customers buy |
| Australian online retail spend | Close to 65 billion AUD per year | Room to grow, but buyers are choosier about who they trust |
| FBA fulfilment fee change | Reduced across select categories from 10 June 2026 | Lower delivery costs for many standard size products |
The pattern is clear. Amazon is not shrinking. It is thinning out. The sellers who stay tend to run tighter operations, price smarter, and treat their storefront like a real business rather than a side project.
Why Fewer Sellers Does Not Mean Less Competition
It sounds odd, but a smaller seller base can mean tougher competition, not easier competition. Marketplace analysts call this shift the Great Compression. Margins tightened from several directions at once. Advertising costs rose. Ad heavy categories like Fashion and Accessories now hold about 27 percent share and keep growing. Sourcing costs from overseas manufacturers, especially from China, stayed strong, with Chinese sellers now holding close to half of all third party revenue worldwide.
For an Australian brand, this means two things:
- You are no longer just competing with the shop down the road. You are competing with global manufacturers who can undercut price.
- Winning on price alone is a losing game. Winning on trust, speed, and relevance to Australian buyers is where the real opportunity sits.
What Changed on Amazon Australia in 2026
A few concrete changes shape strategy this year.
Fulfilment Fees Dropped for Many Products
Amazon confirmed one of its largest ever fee reductions on select Fulfilment by Amazon and Multi Channel Fulfilment costs, effective 10 June 2026. Standard size items in lighter weight tiers benefit the most. If you sell small to mid sized goods through FBA, your landed cost per unit likely dropped this year, even before you touch your pricing strategy.
Storage Fees Still Follow a Seasonal Pattern
Standard size inventory storage runs about 37 dollars per cubic metre from January through September, then rises to roughly 51.80 dollars per cubic metre from October to December for the peak season. Planning stock levels around this seasonal jump protects your margin during the busiest shopping months.
Trust Badges Now Influence Conversion
Listings carrying credibility badges, such as Climate Pledge Friendly, are seeing conversion lifts of around 25 percent compared to unbadged listings in the same category. Australian shoppers increasingly filter by sustainability and verified quality markers before they filter by price.
Amazon Australia GST Rules Every Brand Should Understand
Tax compliance sits at the centre of staying competitive, and it trips up more sellers than any product or pricing decision.
Here is the plain language version.
- GST registration becomes mandatory once your Australian turnover crosses 75,000 AUD in twelve months.
- Goods valued at 1,000 AUD or less, shipped directly from overseas to an Australian customer, generally have GST collected at the border or by Amazon as the platform operator.
- Once your stock sits inside an Australian Amazon fulfilment centre and sells from there, the rules shift. The Australian Taxation Office treats those goods as local stock, not imported goods, so the seller becomes responsible for charging and remitting GST directly.
- Non resident sellers do not need to set up an Australian company in most cases. A local Amazon FBA operation, on its own, usually does not create a permanent establishment for income tax purposes, though this depends on your specific setup.
This is general guidance, not personal tax advice. Speak with a registered Australian tax agent about your specific circumstances, since thresholds and interpretations can shift.
What Australians Are Actually Buying on Amazon in 2026
Product selection still decides more outcomes than any marketing tactic. Australian demand in 2026 clusters around a few clear categories.
- Wireless audio and portable power. Bluetooth headphones and high capacity power banks continue strong demand, driven by remote work habits and a mobile first shopping culture. Mobile devices now account for an estimated 70 to 80 percent of Australian online purchases.
- Smart kitchen appliances. Air fryers, coffee grinders, and multi function kitchen tools are replacing generic appliances as Australians favour specialised, efficient products.
- Skincare and personal care. Health and beauty keeps a steady share of Amazon Australia sales, supported by repeat purchase behaviour.
- Fashion and accessories. This category is the fastest growing on Amazon globally and could challenge current category leaders within a few years.
- Everyday essentials. Home basics, pet supplies, and practical household items remain dependable, low drama sellers with consistent repeat demand.
If your catalogue sits outside these categories, that does not mean walk away. It means your positioning and content need to work harder to earn attention.
If managing all of this feels like more than an internal team can juggle on top of daily operations, working with a specialist Amazon store management service can take the day to day account work off your plate while you focus on product and growth.
What Brands Must Do to Stay Competitive in 2026
This is the part that matters most. Based on where the platform is heading, here are the moves that separate brands that grow from brands that stall.
1. Treat Listings Like Living Assets, Not One Time Uploads
Amazon’s algorithm and buyer expectations both shift constantly. A listing built in 2023 rarely performs the same in 2026. Revisit titles, bullet points, and images every quarter. Update based on actual search terms customers use, not guesses.
2. Build for Trust Signals, Not Just Keywords
Reviews, badges, A+ content, and verified brand registry status now carry real weight in ranking and conversion. Brands that invest in genuine trust building outperform brands chasing keyword density alone.
3. Get Serious About Landed Cost, Not Just Sale Price
With fulfilment fees changing and storage costs swinging seasonally, sellers need a clear view of true cost per unit throughout the year. Build your pricing around full year cost, not a single quarter’s numbers.
4. Diversify Fulfilment Where It Makes Sense
FBA still wins on speed and Prime eligibility, but a blended approach, part FBA and part FBM or Seller Flex, gives brands more control during peak season storage spikes. Test what balance protects margin without hurting delivery speed.
5. Localise for Australian Shoppers Specifically
Generic global listings underperform against ones written with Australian spelling, local sizing, and local delivery expectations in mind. Small details build trust faster than most brands expect.
6. Stay Ahead of Tax and Compliance Obligations
GST mistakes cost real money and create account risk. Confirm your registration status matches your actual sales volume and fulfilment setup, and review it at least once a year.
7. Watch Category Shifts Before They Peak
Fashion, sustainable products, and multi function home goods are all growing categories right now. Brands that adjust their catalogue early capture demand before competition catches up.
Step by Step: Launching or Scaling on Amazon Australia in 2026
For brands starting fresh or expanding their existing store, here is a practical sequence.
- Confirm eligibility and documents. You need identification, a bank account that can receive AUD, tax information, and proof of address. An ABN is strongly recommended even where it is not strictly required.
- Choose your selling plan. The Individual plan suits low volume sellers at 0.99 AUD per item sold. The Professional plan, at 49.95 AUD per month, suits brands planning consistent volume.
- Decide on fulfilment. Compare FBA fulfilment costs against your own warehousing and shipping capability. Factor in the seasonal storage fee jump before committing to large stock volumes.
- Register for GST if required. Cross check your projected Australian turnover against the 75,000 AUD threshold before you launch, not after.
- Optimise listings for Australian search intent. Use local terminology, accurate sizing, and clear delivery timeframes.
- Set up review generation and trust badges. Apply for relevant certifications early, since approval can take time.
- Monitor margins monthly. Track referral fees, fulfilment costs, storage costs, and advertising spend against revenue, not just top line sales.
FBA vs FBM on Amazon Australia: A Quick Comparison
| Factor | Fulfilment by Amazon (FBA) | Fulfilment by Merchant (FBM) |
|---|---|---|
| Delivery speed | Fast, Prime eligible | Depends on your own logistics setup |
| Buyer trust | Higher, backed by Amazon’s reputation | Requires your own reputation building |
| Control over packaging | Limited | Full control |
| Storage cost exposure | Seasonal, rises in peak quarter | You manage your own storage cost |
| Best suited for | Standard size, steady moving products | Bulky, fragile, or highly seasonal products |
Most competitive Australian brands in 2026 use a mix of both, matching the fulfilment method to the specific product rather than applying one method across the whole catalogue.
Tips and Tricks for Staying Ahead
- Recheck your FBA fee tier every time Amazon updates its fee schedule. Small size changes to packaging can shift your cost per unit meaningfully.
- Price high volume, low cost items just under the next fulfilment fee band where possible.
- Build seasonal stock plans around the October to December storage fee increase.
- Apply for Climate Pledge Friendly or relevant certifications early if your product genuinely qualifies.
- Audit your GST position once a year, especially if your fulfilment model or sales volume changed.
Common Mistakes Brands Still Make
- Assuming a listing that worked last year still works this year without any review.
- Ignoring seasonal storage fee changes until the invoice arrives.
- Treating GST as an afterthought instead of part of the pricing model from day one.
- Competing purely on price against overseas sellers with lower manufacturing costs.
- Skipping trust badges and certifications that genuinely apply to the product.
Frequently Asked Questions
Is it still worth selling on Amazon Australia in 2026?
Yes, for brands willing to run a tighter operation. Online retail spend in Australia keeps growing, and third party sellers still account for the majority of units sold. The opportunity is real, but it rewards preparation more than it did a few years ago.
Do overseas sellers need an Australian company to sell on Amazon.com.au?
Generally, no. Most overseas sellers using FBA without local employees or an Australian office do not create a permanent establishment for tax purposes. Always confirm your specific situation with a registered tax agent.
When must a seller register for GST on Amazon Australia?
Once Australian turnover crosses 75,000 AUD in a twelve month period, GST registration becomes mandatory. Voluntary registration is also available below that threshold if you want to claim input tax credits.
What is driving Amazon Australia demand in 2026?
Wireless audio, portable power, smart kitchen appliances, skincare, and fashion accessories are among the strongest performing categories, alongside steady demand for everyday household essentials.
Should a small brand handle Amazon account management alone or get help?
It depends on internal capacity. Many growing brands reach a point where product development competes for time against daily account tasks like listing optimisation, advertising, and compliance. At that stage, specialist support often pays for itself in time saved and mistakes avoided.
Final Thought
Amazon Australia in 2026 rewards brands that treat their store as an ongoing operation, not a set and forget listing. Fewer sellers are joining the platform, but the ones who stay are raising the bar on trust, pricing accuracy, and local relevance. Brands that adjust now, around fulfilment choices, GST compliance, and category timing, put themselves ahead of competitors still running on last year’s playbook.
If you would rather have specialists handle the day to day strategy while you focus on running your brand, get in touch with our team to talk through what a stronger Amazon Australia presence could look like for your business.
