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VPN is a "virtual private network". Think of it as some software you run that connects to a service located elsewhere in the world.
Your network requests, rather than going being sent via the IP address that your ISP has assigned you, go via the VPN to the service, and then, from that location to the web site you were trying to buy from.
So by using a VPN you would be "fooling" the Kobo web site into thinking you were in (for instance) the US of A, as opposed to Australia.
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