The epidemic has changed the global consumer habits, and people's enthusiasm for online shopping is high. Even though epidemic prevention and control measures are being relaxed, this trend is still growing. Previous data shows that Australia was the country with the fastest growth in global e-commerce in 2020.
According to data from Australia Post, local residents spent approximately $23 billion on online shopping last year. The southern islands are now the 11th largest online retail market. In 2024, Australia's e-commerce revenue is expected to reach $32 billion. The International Trade Administration predicts a year-on-year growth of 15.5%.
Based on the above statistical data, Australia will usher in a new opportunity for e-commerce growth.
This article will lead domestic cross-border sellers to understand the trends in Australian e-commerce in 2022.
summary
Australian consumers are moving away from physical stores for shopping. In April 2020, the Australian e-commerce market gained 200000 new customers.
Compared to 2019, online sales increased by 6.8%. At current growth rates, Australia is becoming an important e-commerce center in South Asia and Oceania.
The official language of the country is English, so sellers from various countries can easily import overseas products to Australia.
Most Australian buyers are searching for products online. Many popular products come from China, the United Kingdom, Japan, New Zealand, and the United States. JPMorgan Chase Bank stated that the country's cross-border revenue exceeded domestic sales.
A 2019 Adobe study found that 62% of Australian consumers expect to see diverse products in the market. At the same time, due to the high proportion of overseas births in Australia, the public is also more eager to purchase various products from overseas stores.
According to the last census data, the young population in Australia accounts for 26% of the population. In the past year, young people have shown a strong interest in fashion. Health, beauty, and clothing projects are one of the best-selling products in Australia.
Australian sellers are also very willing to accept consumer comments and recognition, which has enabled the country's internet celebrity marketing activities to proceed smoothly.
#1 in-game high play
For sellers looking to enter the Australian market, Amazon and eBay may provide them with a greater sense of security. In the past few years, the number of Australian consumers on retail giant platforms has also been steadily increasing.
But Australian consumers are also accustomed to using many mature online e-commerce websites. For example, many consumers choose My Deal to purchase household appliances and large items. My Deal is also responsible for logistics and transportation for sellers. In addition, sellers can reach one million consumers per month, which can be said to be a solid presence.
Another popular choice is Booktopia. The leading e-commerce bookstore in Australia achieved 4.2 million book orders in 2020 alone.
Coincidentally, the online platform Kogan has a customer base of 3 million in Australia, offering products such as books, retail, and mobile products.
The following are other well-known e-commerce platforms in Australia:
The Iconic: Dedicated to building a fashion retail business
Woolworths: A comprehensive platform for grocery and home wiring
Chemist Warehouse: an online pharmacy with revenue exceeding $340 million in 2020
JB Hi Fo: Focusing on providing home entertainment products
#2 Logistics and Supply
Australia has well-established infrastructure, world-class airports, shipping terminals, and logistics centers. At the same time, there are also some commonly used express delivery providers in the local area, such as UPS, DHL, FedEx, and Australia Post Couriers, who provide domestic delivery services for all sizes of packages.
#3 Localization
Although Australia belongs to the English speaking market and can hold well for domestic sellers, brands still need appropriate marketing strategies to stand out in the Australian market, otherwise they may lose direction in the process.
Here are some tips to win the trust of Australian customer groups:
• Close to the local context
Australian English is a fusion of American English and British English, but consumers in the country also have their own language habits. Cross border sellers preparing to enter should ensure that they have a thorough understanding of local language habits, write product titles and descriptions in a way familiar to local consumers, and bridge the gap with customers.
Green and environmentally friendly
Due to recent climate emergencies, Australia has become a more environmentally conscious market. Australian consumers prefer to purchase environmentally friendly products and also support sustainable brands.
In addition, Australian consumers are also staunch supporters of their domestic economy, and they are more likely to purchase from local brands. This also provides inspiration for cross-border sellers, indicating that collaborating with local stores to drive sales is also crucial.
#4 Payment methods
Australia Post pointed out that 48% of online payment processes are completed through PayPal, and Australian consumers also enjoy using payment services such as credit card payments and bank transfers.
Meanwhile, Australia has also seen significant improvements in its buy first, pay later payment services. Young Australian consumers tend to choose Afterpay when shopping online. This service provider is a local buy and pay service giant that provides consumers with four interest free installment payments.
#5 Consumption Tax (GST)
Australia imposes a 10% Goods and Services Tax on most products and services.
The consumption tax applies to retail sales below AUD 1000 and applies to online and offline sales as well as imported goods.
#6 Outlook for the Future
Online shopping is gradually becoming the norm in Australia.
93% of Australians use smartphones, and over 22 million Australians use the internet, paving the way for more possibilities for the growth of e-commerce. In addition, with stores like Kogan, Woolworths, and Amazon, new brands can serve the Australian market in a short period of time.
So, if you are also looking for more e-commerce market opportunities, you may consider expanding into Australia. In 2022, perhaps you will stand out in overseas markets.
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