An inside look at Australia’s growing ecommerce market
Aussies spent $41.3 billion over the last financial year.
Australia has experienced an online boom over the past decade, particularly in ecommerce. According to Roy Morgan, Aussies spent as estimated $41.3 billion online shopping over the last financial year, up nearly 10% from 2015.
What’s powering Australia’s ecommerce surge?
PFS Web believes Australia has entered into the realm of the world top ten online shoppers due to a stable economy, rather than increase in number of consumers.
Australia is headed towards higher levels of ecommerce growth due to the following:
High internet usage and accessibility
Just over 84% of the Australian population is connected to the internet, with connectivity increasing 1.4% per year. According to Smart Company, Australian’s also spend approximately 10 hours per day engaging with internet-connected devices.
The rise of mobile-first users
There are around 19.4 million mobile device users in Australia. While a large number of users mostly use their mobile phones for browsing online stores, the number of people making a purchase through their smart device is on the rise. In 2015, around 35% of ecommerce transactions were made via smartphones, with 27% of those people buying products from their phones on a weekly basis.
Higher preference for online shopping
As trust builds due to the further advancement of secure shopping carts, so does Australia’s preference for buying online. A 2016 report from the Ecommerce Foundation shows that Australian’s are confident online shoppers, with nearly 80% saying they prefer it over traditional brick-and-mortar shopping.
The facts: A further look at the Australian Ecommerce Landscape
- A Recent finding from Roy Morgan shows that online shopping is not a threat to the local retailer, as once perceived. Over one-third of money spent online is for brick and mortar internet stores
- Over half of Australian online clothing retail dollars stay local
- Ecommerce transactions are predicted to rise 21% by 2018.
- Approximately 69% of Australian buyers make international purchases. The top three cross-border sales are from the U.S., China and the U.K.
- Roughly 50% of large online retailers offer multiple delivery options for their products
- While Christmas and Boxing Day sales are a big drawcard for retailers, Click Frenzy is gaining momentum, generating $200 million in sales for 2015
- Australian’s prefer credit and debit cards when buying online. PayPal accounts for 13% of purchase, while POLi (an Australian alternative) is used by 2% of shoppers
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