Amazon is still seen as a major threat to retailers, despite its US branch pulling out of Australia.

The online shopping giant will no longer ship to Australian addresses from overseas, in response to a recent tightening of the country's GST laws.

Retail New Zealand general manager Greg Harford told Mike Hosking there is a couple of ways to view the move.

"There will be some who might see it as a massive global corporation throwing a tantrum because it doesn't want to meet its tax obligations in Australia, but really we think it is more a question of strategy in their online retail market, in Australia."

Harford says consumers will still be able to buy from Amazon.com.au and he expect's they will start beefing up the site's catalogue.

LISTEN ABOVE AS GREG HARFORD SPEAKS WITH MIKE HOSKING