By revenue, Australia is the world’s tenth largest e-commerce market.
This is partly due to Australia’s affluent population, which has a high Internet penetration rate; 21 million of the country’s 25 million residents use the Internet. 73% of whom are claimed to have purchased something online in 2018.
According to a research released by Australia Post – the business responsible for delivering all e-commerce products throughout the country – between 2017 and 2018, Australia’s total e-commerce revenue was $ 27.5 billion, expanding at a rate of 20.2 percent year over year.
Retail-wise, it is rising at a rate of barely 6% each year. E-commerce now represents 10% of overall retail revenue.
The primary categories in which Australian customers make purchases are as follows:
- 35.6 percent – convenience stores
- 27 percent – fashion (high end and fast)
- 11.5 percent for household goods and appliances
What’s fascinating about the Australian e-commerce business is the gradual adoption of AfterPay, which launched in 2015 and took a few years to gain widespread adoption among retailers and e-tailers. Australian consumers can make interest-free payments on products through this service. 6.7 percent of all payments were made through this service between 2017 and 2018.
Australia is a low-risk country with a stable economy that ranked fifth in the Index of Economic Freedom, demonstrating judicial effectiveness, fiscal health, and commercial and commercial freedom.
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What does the market look like in Australia?
According to a recent survey, businesses with a presence on the Internet that extends beyond the basics earn more money. According to a recent Australian survey, small firms who improved their digital interaction saw a 60% increase in revenue per employee. Furthermore, they recorded a revenue increase of 38%. This demonstrates that the ability of small and medium-sized firms in Australia to implement an e-commerce strategy leads in a remarkably positive track record.
Several significant projects in Australia are now evaluating the feasibility of incorporating e-commerce into their business plans. Perth Airport has begun work on a project to support their tax-free shopping business model by building a mechanism that enables Chinese travelers to purchase with local currency. The airport’s payment system will soon support Chinese payment methods such as Alipay and WeChat. Due to the simplicity with which Chinese travelers can use China-based payment methods, financial transaction issues will be significantly minimized, while user happiness will grow.
Lobster Shack is another enterprise that is enhancing its eCommerce presence. As with the Perth airport, this eatery is developing a method for accepting payments via Chinese payment gateways. Not only are they implementing AliPay and WeChat, but they are also tailoring their promotion channels to the language of their Chinese customers, which is critical given that it is now widely accepted that breaking down language barriers is critical for interacting with customers.
The Top Ecommerce Platforms for the Australian Market
To gain a thorough view of the Australian ecommerce sector, we evaluate the top-performing websites and provide them to you for a closer look at who dominates the country’s online markets.
As with its affluent international rivals, the Australian e-commerce market is dominated by American e-commerce titans such as eBay and Amazon, as well as domestic firms such as Woolworths, JB Hi-Fi, and Kmart. Apart from the American influence, only Gumtree, which was created in the United Kingdom, has cracked the top 10, demonstrating the dominance of Australian brands in the Australian e-commerce market.
1- eWorldTrade
Topping the list is eWorldTrade, a well-known B2B eCommerce site that offers dropshipping in the United States. The portal boasts a vast inventory, which includes everything from electronics to manufacturing materials, cosmetics to healthcare supplies. It sells everything from garments to gadgets to pharmaceuticals and much more. Without a doubt, eWorldTrade is the fastest site with the most complete capabilities. It amuses consumers with its simple-to-use features and intuitive interface. Each of the items provides a high level of quality, which helps to grow the clientele and expand the business.
2- Gumtree
Gumtree, created in the United Kingdom in 2007, entered the Australian market in 2007 and has since established itself as the country’s top marketplace and classifieds site, where millions of Australians purchase and sell products and services.
Gumtree Australia works in a variety of areas, including clothing, accessories, cars and trucks, real estate, and rental car services.
3- Amazon Australia
Amazon launched in the United States in 1994 as a pioneer in the e-commerce market, providing a platform for businesses to grow and customers to shop the world’s largest selection of goods.
While Amazon has been shipping to Australia for some time, it only established a presence in 2017, which means it has been operating in the country for less than three years and has already risen to become the country’s third largest e-commerce site. Amazon now offers a wide variety of products to Australians, including digital media, books, electronics, fashion, fitness, and automotive.
4- Woolworths
Woolworths is an Australian grocery chain founded in the 1920s, with locations in all of the country’s states and territories. Today, it has the most extensive e-commerce presence of any of the country’s supermarket companies. Woolworths, which is part of the Woolworths Group, sells a variety of foods in addition to other products and services, such as recipes.
Woolworths’ online selection comprises categories such as fruits and vegetables, meat, seafood, and deli, bread, dairy, health and beauty, and home and lunch box.
5- JB Hi-Fi
JB Hi-Fi began as a brick-and-mortar retailer of consumer electronics and entertainment products in 1974 in Australia. JB Hi-Fi established its e-commerce site in 2000 and has grown to become the largest online retailer of electronic products in the country. Additionally, they have expanded its operations to include New Zealand.
Computers and tablets, televisions, headphones, speakers and audio, smart home, mobile phones, games, drones and robotics, and home appliances are all included in the JB Hi-Fi line of products.
6- Kmart
Kmart, another Australian-born retailer, began operations in the country in 1967 as a network of discount-priced variety stores. Today, Kmart maintains 200 locations throughout Australia and New Zealand, as well as a strong online presence in both countries.
Kmart is a pioneer in the discount product sector, offering low-priced consumer items in a variety of categories, including home and life, electronics, women, men, children, infants, sports, gifts, and parties. The majority of Kmart customers visit the site to shop for fashion.
7- Big W
Big W is another Australian discount retailer that has had a strong presence across the country since the 1950s, when it launched its first brick and mortar store, which now numbers over 180.
Big W launched its online store, bigw.com.au, in 2010, and has since evolved to become one of the most popular online variety stores, competing directly with Kmart. Big W sells items in the following categories: Baby, Children, Women, Men, Home, Travel, and Outdoors.
8- Kogan.com
On this list, Kogan.come is the sole pureplay e-commerce site founded in Australia. It was founded in 2006 to fill a void left by the absence of a pure e-commerce site dedicated to the online sale of consumer goods. It began selling televisions before diversifying into other consumer gadgets. Kogan.com strengthened this area further in 2016 when it acquired Australian electronics shop Dick Smith.
Kogan.com now sells products in a variety of categories, including consumer electronics, home and garden, furniture, office supplies, and infants and children.
9- Cabbages
Cabbages is an Australian grocery chain that, along with Woolworths, controls a monopoly in the domestic market. Coles has grown to over 800 locations across Australia since 1914 when it opened its doors.
Cabbages began selling goods online in the early 2000s, and by 2003, it had grown to become one of the major online supermarkets. Today, their online store sells groceries such as fresh produce, bread goods, dairy products, and liquor, as well as household items such as glassware and cutlery.
10- Chemical Warehouse
Chemical Warehouse is an Australian store that began operations in 1973 with the goal of providing clients with the same wide variety of products found at a chemist, but at a lower price.
Chemical Warehouse grew to prominence in the Australian retail sector as a result of its franchise model, and now serves the entire country through its online store, which offers discounted products such as drugs, vitamins, cosmetics, health products, paramedical products, and other pharmaceutical items.
11- Selz
Selz is a straightforward e-commerce platform for tiny and emerging digital entrepreneurs and small companies. It includes an intuitive store builder, simple payment processing, and marketing tools for your new business.
Selz enables the distribution of any form of product, ranging from services such as Personal Trainers and Health Professionals to e-books and digital downloads, as well as classic ‘pack and send’ products. The platform enables you to fully customise your own store and connect your own domain to it, or to simply download the ’embed’ buttons and incorporate them into existing material.
The beauty of this platform is that it is user-friendly for beginners, but Selz also makes it simple for sellers of any product or service to create their own stunning online store, even if they lack design or development skills.
Selz provides a plethora of pre-designed themes for stores that may be simply customised with the ‘drag and drop’ feature. In as little as 30 minutes, you may have a shop up and operating! Unlike other eCommerce systems, Selz enables merchants with no design or development skills to easily construct their own beautiful store.
12- Shopify
Shopify is one of the most widely used shopping cart platforms for e-commerce companies. This online shopping platform is well-liked by small business owners due to its focus on this specialised sector. There is a reason why Shopify is at the top of the list of online store owners’ preferred platforms. Not only does this ecommerce platform provide some impressive functionality (like the ability to integrate Shopify subscription apps), but it also includes some outstanding themes. It is one of the most highly recommended platforms for anyone interested in starting a business in the e-commerce sector.
Shopify’s basic subscription begins at $29 per month, while the most comprehensive package begins at $299 per month. However, a Shopify-Lite version is available that enables you to sell on Facebook and integrate any product into a website or blog. This Shopify-Lite plan begins at $9/month, making it far more economical for small enterprises just getting started.
What are the opportunities for innovation in Australia?
There are a variety of opportunities to innovate in e-commerce. According to one of the world’s leading web domain providers, 59% of small businesses in Australia do not have a website. According to the report, small businesses have the misconception that implementing a website is a difficult and expensive task. As a consequence, they cannot reap the benefits available from creating a simple but powerful digital strategy.
The report expands on the reasons, explaining that some owners tend to think that implementing a website has no end goal and is inefficient and that their business is too small for it to make a difference. In contrast, the percentage of companies that implemented a website stated that this implementation contributed up to 25% of their growth. An innovative solution to this misconception is to bring web hosting services to the needs of small businesses. There are a number of companies offering web services with positive results, however small businesses still need some guidance and incentives to enter these digital strategies.
Bottom line
Due to the effects generated by technology, a percentage of physical stores have suffered significant losses. Although it has been reported that physical stores will continue to exist, it will be more focused on an experience or a trip. However, it is undeniable that these individual stores still need a digital presence to raise awareness. Recently, it has been reported that independent stores are struggling to increase customer loyalty. Digitization is changing the retail industry and a clearer competitive distinction will develop between independent stores and e-commerce platforms.
E-commerce in Australia is booming. Local demand for goods is strong and will continue to grow. Whether it’s digitizing your business, offering digital assistance services, or looking for innovative solutions to shipping and logistics problems, it’s important for your business to take advantage of the e-commerce wave for higher profits and a broader customer base. To simplify your entry to the market in Australia, you need the help of experts who will ensure that your company complies with the legal requirements that the country demands.
