The pandemic turned global buyers to online shoppers. And the trend is still growing strong, even when COVID-19 restrictions are slowly coming to an end. Australia registered the highest eCommerce growth across the world in 2020.
The year before, customers spent around USD23 billion in online sales, according to Australia Post.
The southern island is now the 11th largest online retail market. In fact, Australia’s eCommerce revenue is expected to reach USD32 billion by 2024. That’s a 15.5% year-on-year increase, according to the International Trade Administration. (source)
With such statistics, it’s clear that there’s no better time for eCommerce in Australia than now. But to really succeed, there’s a bit of context to understand first.
In this article, we’ll explore Australia’s ecommerce trends and predictions for 2022.
Let’s dive right in!
Australia Ecommerce Market – Overview
Aussies are moving away from brick-and-mortar shopping. In April 2020, the Australia eCommerce market garnered 200,000 new customers. (source)
That’s a 6.8% online sales increase, compared to 2019. At such rate, Australia is on the way to become a key eCommerce Hub in South Asia and Oceania.
- The country’s official language is English. This means it’s easy for sellers to offer new, overseas items to Australia.
- Most Aussie buyers look for export products online. Some of the most popular items come from China, the UK, Japan, New Zealand and the US. JP Morgan states that cross-border shopping exceeds local sales.
- A 2019 study by Adobe states that 62% Australians expect diverse product offers. This is due to Australia’s high overseas-born population rate. Citizens expect diverse items from overseas shops. (source)
- Australian youth make for 26% of the population, per the last census. Over the last year, this group has shown a deep interest in fashion. Health, beauty and apparel items are some of the top selling products in Australia.
- Young Aussies are also very receptive to customer reviews and endorsements. This makes the island an excellent arena for trustful influencer marketing campaigns.
Sources: JP Morgan and Australia Post
Such positive facts hint at a great future for ecommerce in Australia. That’s why, 2022 is ripe for online sellers to delight Aussies.
Now that we got the lay of the land, let us explore Australia’s ecommerce trends and predictions for 2022.
Related content: The Rapid Growth Of Amazon Australia
The Big Players
Amazon and eBay are safe bets for sellers looking to start up their Australian market base. The retail giants have seen a steady rise of Aussie customers over the last years.
But Australians are also accustomed to using many established online players. For example, many shoppers go to MyDeal for home appliances and bulky items.
MyDeal also takes care of many of the listing logistics for sellers. Plus, sellers can access an audience of 1 million shoppers per month.
Another great choice is Booktopia. This is the country’s largest eCommerce book store. In 2020 alone, they hit 4.2 million book orders.
There’s also Kogan, which features a 3-million customer base in Australia. This shop offers items like books, retail, mobile and mobile products.
Some other great Australian eCommerce Stores are:
- The Iconic. It specializes in fashion retail.
- Woolworths. A well-established grocery and house appliance online store.
- Chemist Warehouse. A medicine store that’s recently made over USD340 million in 20120
JB Hi-Fo. This shop sells home entertainment products in Australia.
Shipping and Supply
Australian cities feature a well-developed infrastructure. The country boasts world-class airports, shipping docks and logistic centers.
Some of the most used delivery providers are UPS, DHL, FedEx, Australia PostCouriers. Each offers national deliveries for all-size parcels.
But there’s a small catch. Sellers require an Australian Business Number (ABN) to sell in Australia. This is an 11-digit number that’ll identify your brand to the Australian government.
Plus, Australia is a mark of trust for many consumers. It’ll help you to earn the trust for your new customers.
Going Local
As we said, Australia is a great new territory for English-speaking sellers. But brands still need a proper marketing strategy to make your mark among Aussies. Otherwise, you may get lost in translation.
Here are a few tricks to earn the trust of Australia’s customer base:
Go Native
Australian English takes many features from American and British English. But Aussies also have their own approach to the language.
Make sure you understand the pronunciation and local vocabulary. Write up titles and descriptions in the Australian way. Customers will be more receptive to your listings.
Go Green
Due to its recent climatic emergencies, Australia has become a more environmentally conscious market. Aussies prefer to buy eco-friendly products. They also support brands that advocate for sustainability.
Plus, Australians are also strong supporters from their local economy. They are more likely to buy from national-based brands. This makes it crucial for sellers to partner up with local stores to drive sales.
Payment Options
Australia Post states that 48% of online payments are made using PayPal. But Aussies are also big on card payments, and bank transfers.
However, Australia has also seen a big boost on “buy now, pay later” payment options. This is the rising trend among young shoppers.
Young Aussies go to Afterpay when shopping online. This provider takes 4 interest-free installments from customers to complete a purchase.
GST tax
Be aware, international Sellers. Australia charges a 10% Goods and Services Tax (GST) on most products and services.
GST is valid for retail sales below AUD1,000. This goes for online and offline sales, and import goods.
Looking Ahead
Online shopping is quickly becoming the norm in Australia. Half of the country’s population is tech-savvy.
With a 93% smartphone penetration, more than 22 million Aussies have internet access. (source)
That means online sellers have an open chance to delight almost every single Aussie. This growth in eCommerce won’t stop anytime soon.
Plus, with stores like Kogan, Woolworths and Amazon, new brands can serve the Aussie market in no time.
So, if you’re looking for big online sales, then keep your eye in Australia. You’ll be set to stand out overseas in 2022.
Author
Esteban Muñoz is an SEO copywriter at AMZ Advisers, with several years’ experience in digital marketing and e-commerce. Esteban and the AMZ Advisers team have been able to achieve incredible growth on the Amazon platform for their clients by optimizing and managing their accounts and creating in-depth content marketing strategies.
