An inside look at Australia’s growing ecommerce market

An inside look at Australia’s growing ecommerce market

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

Looking for a powerful ecommerce web solution? Our team of based in Brisbane web designers and website developers can create a one-of-a-kind online store to suit your individual ecommerce website needs. Get in touch with iFactory today. 

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