The Australian digital commerce sector has grown at a breakneck pace during the last few years. B2B eCommerce revenue in Australia is estimated to grow at a compound annual growth rate of 4.22 percent between 2021 and 2025, culminating in a market volume of AU$45.7 billion by 2025.
The advent of new internet sites and the accessibility of more convenient payment methods are primarily responsible for this significant growth. The internet retail sector in Australia has revolutionised the way it conducts retail operations during the previous five years.
However, the early winners in the B2B ecommerce competition are online merchants that have pushed the envelope in terms of making things significantly more accessible to users and providing a more pleasant online purchasing experience.
To share these insights, we’ve compiled a list of the best online shopping websites in Australia that are setting the bar for B2B ecommerce innovation.
Australia, one of the most competent e-commerce countries, is a minor but manageable online purchasing market. Australia, which is dominated by a major American e-commerce giant, nonetheless has some digital space for established local players.
Australian internet and e-commerce environments are comparable to those in the United States in terms of functionality but are closer to those in Canada, if not slightly smaller in size.
86% of total Australian population has access to internet which makes the country’s rich and widespread usage of online shopping make it a mature industry, with Australians buying online for a wide variety of goods and services using both desktops and mobile devices.
Given the technological sophistication and solvability of the Australian market, it’s unsurprising that online competition is severe. However, given the market’s relatively modest size, Australian e-commerce is controlled by a particular US platform operating across many divisions, especially eBay, which is by far the dominant e-commerce company in Australia and is considerably ahead of global leader Amazon. Amazon, on the other hand, appears to be gradually increasing traffic year over year.
Nonetheless, some traditional brick-and-mortar shops, department store chains, supermarket chains, and specialised merchants, such as JB Hi-Fi and Woolworths, continue to hold a portion of the market. Specific pure-play e-commerce businesses, such as Kogan.com, have also been able to secure a share of some of these segments of the market in Australia.
Table of Contents
The following is a list of the top ten Australian B2B e-commerce platforms:
To provide context for the present status of market competitiveness in the Australian B2B e-commerce sector, here are the top ten B2B e-commerce platforms in the country.
1. eWorldTrade
A global B2B e-commerce giant, eWorldTrade has captured the B2B market in Australia and has provided the big and small buyers and suppliers with a promising platform. eWorldTrade came about 10 years ago, and gradually has penetrated different geographical regions, stretching as far as Oceania.
Now eWorldTrade is a primary B2B e-commerce platform offering a safe-haven for buyers to connect with dynamic sellers. eWorldTrade also brings a wide array of product categories ranging from industrial products to domestic items. These products are highly in-demand in the global trade marketplace, and with competitive prices and a healthy shopping experience, eWorldTrade continues to be a primary trading platform for most in Australia.
2. eBay Australia
eBay is an American online marketplace that pioneered B2B e-commerce by allowing individuals and businesses to sell directly through its online auction platform. Since its inception in 1995, eBay has spread to over 20 countries, including Australia, facilitating the sale of things ranging from automobiles and trucks to electronics and fashion, home and garden to sports and toys, and even business and industrial products.
3. Amazon Australia
Amazon began as an online bookstore in the United States in 1994 and has since expanded to include movies, technology, fashion, furniture, food, toys, and jewellery. Amazon has become the undisputed global leader in B2B e-commerce, except in Australia, where it is only second. With the acquisition of Whole Foods Market, Amazon expanded into brick-and-mortar retail, as well as publishing, electronics, cloud computing, video streaming, and production.
4. Woolworths
Woolworths is a retail corporation that operates supermarkets and other brands (including Big W). It is a subsidiary of the Woolworths Group, one of Australia’s largest companies. Woolworths distributes groceries throughout Australia via their website, as well as a variety of other household, health and beauty, and baby products.
5. Coles
Coles is a grocery, retail, and convenience store network. Coles was founded in 1914 and currently operates over 800 stores around Australia. Coles now distributes food, consumer, and home products online to Australian digital customers.
6. JB Hi-Fi
JB Hi-Fi, founded in 1974, is a brick-and-mortar shop of electronics and entertainment consumer goods, including video games, movies, music, and software, as well as hardware electronics and electrical household appliances, and mobile phones. The company also sells products online. JB Hi-Fi has also expanded in New Zealand since 2006.
7. Big W
Big W is an Australian cheap department store business that is a subsidiary of Woolworths. Big W operates over 180 locations around Australia and also offers its clothing and products for women, men, children, and babies online, as well as toys, home products, and gadgets.
8. Myer
Myer is an Australian department store chain. It offers a diverse selection of products in a variety of categories, including apparel, cosmetics, electrical and electronic home appliances, furniture, food & confectionary, toys, and books, in over 60 locations throughout the country. Myer also sells things online via a vibrant B2B e-commerce network.
9. Kogan.com
Kogan.com is a specialist B2B e-commerce retailer that specialises on electronics and consumer appliances, fitness and apparel, and tools. Kogan.com was founded in 2006 and first focused on selling televisions online before branching out into other lucrative categories of products sold via B2B e-commerce. In 2016, Kogan.com bought the internet businesses of Dick Smith, a defunct retailer.
10. Officeworks
Officeworks is a chain of office supply stores that sells a variety of office products such as print and copy, computers and technology, furniture, and stationery. Officeworks, which is owned by the Wesfarmers company, also sells its products online via its B2B e-commerce website.
What things did Australians purchase online during the deadly virus?
Following the government’s announcement of the epidemic and isolation, people were forced to increase their reliance on online purchasing. Online behaviours shifted away from goods purchases and toward payment methods.
Food and drink sales more than quadrupled year over year, as did sales of household and garden supplies. Previously, tourism or fashion were at the top of the list.
- Currently, November is the period in which Australians make the most internet purchases.
- Australians adore deals
- While credit cards remain the preferred mode of payment, Afterpay (which allows you to purchase an item now and pay for it in fractional instalments) is gaining traction and has become extremely popular among young people.
- They are quite receptive to purchasing from internet merchants located outside the country. Australia has a higher rate of cross-border commerce than other Asia-Pacific countries. It was utilised by 61% of users, compared to 50% in other nations in the area. Both China and the United States are important sources of consumer goods for Australians.
A snapshot of B2B eCommerce in Australia: the most frequently used payment methods
When it comes to online payments, credit cards are the most often utilised option. Debit cards are more widely used than credit cards. Bear in mind that Australia is a very diverse country with a sizable number of first-generation immigrants from underdeveloped countries. As a result, this customer is more averse to purchasing on credit and prefers to pay in cash whenever possible. As the table below indicates, cash accounts for 7% of payment options.
It’s critical to notice that online sales platforms offer a variety of payment methods, particularly the most popular ones. In many circumstances, if a user cannot locate their preferred payment method during the payment process, they will leave the transaction and proceed to another site.
Shipping and logistics firms in the Australian B2B e-commerce industry
Australia’s logistics infrastructure is excellent, as we indicated at the outset, despite the fact that it is a big country with a very low population density per square kilometer. Several package delivery providers operate throughout the country, including DHL, UPS, and FedEx. Nonetheless, Australia Post is the largest of the three, accounting for over 75% of the market for direct-to-consumer delivery of internet orders throughout the country.
The future of B2B eCommerce in Australia
The future outlook for the country of the south pacific is extremely bright for anyone willing to take the risk and start an online business; researchers forecast an annual growth rate of 13.6 percent in B2B eCommerce income by 2025. Revenue from online sales is estimated to be around $24.7 billion by the end of 2021. Fashion is the largest sector, with a market value of 6,300 million euros.
Geographical localization
Australian English is the country’s official language, combining elements of British and American English. However, it contains a number of distinguishing characteristics, including a distinct pronunciation and lexicon. This tutorial will teach you everything you need to know about Australian English.
Understanding the variations between Australian and British English is critical, as Australians often prefer to use their own dialects.
By localising your business, you may tailor your product descriptions and marketing strategies to strike a deeper chord with local consumers.
Transportation, logistics, and shipping
Australia has a well-developed infrastructure, with an inventive network of logistic facilities. It boasts a plethora of delivery service companies that facilitate the delivery of online orders around the country. Couriers Please, DHL, UPS, and FedEx are only a few of them, but Australia Post is the largest (75 percent of the market share for direct-to-consumer deliveries).
Australia Post provides a variety of delivery alternatives for parcels of all shapes and sizes. This shipment generated up to $2.4 billion in B2B ecommerce during the height of Covid-19, compared to the same time last year. Additionally, over half of all Australian internet customers prefer to return foreign goods using Australia Post.
Goods and services tax (GST) and ABN
In Australia, the majority of goods and services are subject to a 10% Goods and Services Tax (GST). That is why, while selling to this country, you should consider the GST tax. Fortunately, the Australian tax system is simpler than the one in the United States.
Here are some critical details:
- GST is applicable on both online and offline shopping sales of low-value items ($1,000 or less) that are imported and sold to consumers in Australia.
- If the value of imported goods exceeds AUD $1,000, the importer is required to pay duty, GST, and perhaps other taxes and levies.
- If you sell to Australia and produce sales of $75,000 or more, you must charge GST on all products, regardless of their value. In this instance, regardless of whether you are an Australian resident or a foreigner, you must register for and collect GST in Australia.
For more information on taxation on retail sales of goods and services into Australia, consult the Australian Taxation Office’s official guidance.
ABN (Australian Firm Number) is a unique 11-digit number that your business uses to identify itself to the government and community. Consider registering for an Australian business number (ABN)—this will enable you to secure an Australian domain name (.com.au,.au, or.net.au) and easily earn the trust of local consumers.
Apply for an ABN online—it’s simple and free.
Imports that are prohibited
Whatever its size, weight, amount, or cost, anything imported into Australia from another country is considered an imported item. As an B2B ecommerce merchant, you should be aware of the products that are and are not permitted to be imported into this country. The Australian Border Force maintains a comprehensive list of forbidden imported items.
Keep in mind that selling in Australia requires compliance with the Australian Consumer Law, which was enacted to safeguard Australian customers.
