Growth of Ecommerce in Australia

Growth of Ecommerce in Australia

It’s Epic! How Ecommerce is evolving in Australia

Re-imagining how we do business

When you think of  our country Australia, the picture that comes to mind is sun-drenched beaches, blue waters and colourful reefs, or perhaps the beautiful bush or the outback.  Oh and of course – fun-loving people!

And Australia is undoubtedly one of the best tourist holiday destinations in the world, but it is also a great place for the flourishing ecommerce industry.

Ecommerce has surged during the coronavirus  pandemic – this was a matter of survival – people purchased largely essential items in the early stages. Shopping behaviours changed; shopping online was new to many people.  Currently, revival is in progress, and confidence has grown on the part of both consumers and suppliers. Retailers have learnt quickly and become very creative in terms of  sales and delivery models.  Many are ramping up their digital transformation to be more effective and competitive in the ecommerce arena.

The time is right to benefit from an expected enduring shift in consumer shopping behaviours.

Last year Australia Post  forecast that 12% of consumer spending would be conducted online by 2021, yet Australia Post recently published Inside Australian
 Online Shopping update October 2020, noting that 6 months into the pandemic, online shopping growth had topped 75.8% year-on-year (YOY). Overall between March and September 2020, more than 1 million new Australian households shopped online. They went on to highlight that online growth has begun to stabilise nationally, and noted that all categories have performed well since April, with Home & Garden and Food & Liquor recording the strongest growth over this period.

Australia Post
Online purchases to September 2020
(Australia Post report 2020).

Growth Of Ecommercei n Australia

Embrace the changes

Recent and current trends in online shopping

In Australia in 2019, variety stores, with an ever- expanding range of goods, remained the most popular online shopping channel. Fashion and apparel remained
the most popular items purchased online, followed by health and beauty and home and garden.

JP Morgan’s 2019 report on ecommerce payment trends analysed the top ecommerce segments differently, to report these figures  categories:

  • Consumer electronics – 22.9%
  • Clothes and apparel – 17.3%
  • Household goods – 7.3%
  • Health and beauty – 4.8%
  • Groceries – 3.7%
  • Travel – 24.6%
  • Others – 19.4%

(Statistics by www.janio.asia)

As we can see from the Australia Post graph above, in this remarkable year of 2020, things have changed from even the year before – to quote an obvious example, travel.  We are not totally sure what is the new normal, but we know things have changed for the better in ecommerce, and customers’ new shopping habits are  expected to stick.


Supporting smarter shopping in Aus!

Benefit your business through ecommerce technology

Technology remains the driving force behind the growth in ecommerce in Australia.  From the use of drones for delivery, to the use of Augmented Reality (AR) to inform your customers about your product, technology is truly the backbone of e-commerce.

Australia clearly has a quickly growing base of consumers who are willing to adopt a variety of emerging ecommerce techniques – from shopping via their usual stores’ online options,  or via online-only ecommerce merchants, and in the last couple of years especially, social media buying.

85 percent of Australian e-shoppers have made a purchase from a site after finding it via social media.  (JP Morgan, 2019, pre-pandemic)

The 18 – 36 year old demographic makes up around 26 per cent of Australia’s population who drive the purchases of product categories like fashion and apparel.  With the average number of devices per user standing at 3.1, social media is a key channel to reach this audience. (Janio, Snapshot of Australia’s eCommerce in 2020, https://janio.asia/articles/australia-ecommerce-snapshot)

The way payment is made is an important component of customer experience, and can make or break customer confidence and convenience. Whilst purchasing online via desktops and tablets was common during the height of the pandemic in Australia, the convenience of  purchases via mobile devices is on the increase.

As a minimum sellers must ensure they have mobile-friendly website options.  JP Morgan observed in 2019 that  dedicated mobile-shopping apps represent a major opportunity for Australia’s e-commerce merchants to leap ahead of their competition. Australian online shoppers much prefer apps to mobile-supported websites with 68% of mobile commerce now completed in-app, accounting for $5.6 billion of sales.

People are also taking up buy-now pay-later (BNPL) opportunities.   Ecommerce merchants must make sure they can provide simple, fast, seamless shopping to meet the needs of this increasingly sophisticated cohort.

Set to shatter records??

What will Cyber sales and Christmas bring?

 Ecommerce has grown so much during COVID-19, that the Australian market has found a new normal.  The year has seen sustained growth.

As Australia Post said in its recent ecommerce update:

“There is no doubt the industry is hurtling towards the biggest peak in online shopping history”.

With Cyber sales and Christmas looming,  connecting with your customer base has never been easier.

The concepts of Black Friday and Cyber Monday sales have now been embraced by Aussies.

In 2019 Black Friday & Cyber Monday grew 31.6% YOY.

So far in 2020 we have seen more households shopping online than ever before; 
more regular and frequent shoppers. Both new and regular households have shopped over 1.7 times more than in 2019.
Both factors set the foundation for record-breaking sales in 2020.

Just in closing ……

Australia continues to be an ecommerce powerhouse despite having a smaller population than many growing markets. Aussie online retailers are right up there in international marketplaces!  Any online businesses who can promise both excellent services AND enable meaningful experiences for customers which they’ll associate with  YOUR  brand, are going to come out on top in this AU$33.1 billion industry.

The future definitely looks bright for Australian ecommerce!

If you want to start your venture, feel free to book a call with Webyroo to give flight to your dreams.

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