The Australian E-Commerce Market Boom
Australia’s e-commerce market has grown in the last few years. According to the National Australia Bank, Australia’s total retail spend online reached $15.25 billion for the year to April 2014. With the current trends and continuing innovation it should continue to do so.
Largely contributing to Australia’s e-commerce growth is internet and smartphone adoption. More than three-quarters of internet users in Australia will buy items via online or mobile channels this year. Australian’s also tend to spend more per purchase on digitally purchased items than other countries. Smartphone penetration is currently at 54%, expected to reach 70% by 2017. Australians appear to be extremely comfortable with m-commerce. Mobile commerce sales reached $5.7 billion in 2012, accounting for almost one-third of online sales.
Though Australian’s are spending more time and money online, the large majority of their purchases are from Australian based companies. Domestic online retail spend continues to grow at a higher rate than international, making up 74 percent of all online sales. The rate is starting to slow down though, making room for new international retailers to stake their claim.
The Australian population is receptive to creative and unique shopping experiences. A plethora of big corporations have actively marketed to the Australian market these last few years, including Asos who most recently launched their Australian e-commerce branch. Australians are extremely active on Facebook, Youtube and Tumblr so focus your social media efforts on creating unique and engaging experiences on these main channels.
There are a few considerations to be made when marketing to Australians. They don’t feel comfortable paying with credit cards and prefer using e-wallets. Also, there are Internet bandwidth restrictions in their market. Most Australians have a daily cap on their mobile and Internet bandwidth usage. Having a robust hosting server and creating a site with optimized load time is ideal. Another consideration to be made prior to marketing to Australia is the shipping method and cost, which can get pricey.
Overall, the Australian e-commerce market is very strong and a very attractive destination. I recommend starting with engaging the audience on social media and doing your homework on the logistics of selling to Australia before diving in.