SALE!

eCommerce in Australia:
10 Key Insights
Australia is one of Asia Pacics most highly developed eCommerce markets, offering a substantial
market size and a tech-savvy consumer base that is open to online shopping. According to A.T. Kearneys
2013 Global Retail eCommerce Index, Australia ranks 9th worldwide in terms of eCommerce market
attractiveness. The countrys highly efcient logistics infrastructure, alongside high internet penetration
and smartphone usage, allows consumers to shop across a variety of channels, both online and
ofine. There are an increasing number of Australians shopping online because of the
convenience and wider product selection that eCommerce offers. In 2014, a Pitney Bowes
study found cross border trade to be a major proportion of total online sales,
demonstrating the vast opportunity for international eCommerce
players entering this market.

ECOMMERCE MARKET VALUE & GROWTH POTENTIAL

In 2013, eMarketer estimated Australias eCommerce sales to reach AU
$26.77 billion, with projected growth to AU $32.56 billion by 2017. From
October 2013 to October 2014, National Australian Bank (NAB) reported
that online sales represented 6.8% of total retail spend that year. Frost &
Sullivan predicts this percentage will increase even further to 9.8% by
2017. In 2014, Shopify predicted that by 2016, the average Australian online
shopper will spend USD $4,500 online.

A HIGHLY CONNECTED AUDIENCE

According to Nielsen, 82% of Australians were online at least once a day in
2013, with an average of 23.3 hours of online digital media engagement
weekly. In 2014, Internet Live Stats reported that 90% of Australians had
internet access. Australia also has a very active older online population;
Googles Consumer Barometer Report found that the most active online
group was aged 25 to 34 years (94%), with those aged 55+ (72%) also online
daily.

Growth in eCommerce Sales

AU $32.56
billion

23.3
hours

%
90
INTERNET

AU $26.77
billion

Average time
online weekly

PENETRATION

25 to 34
year olds

USD $4,500

Most active
group online

Average annual spend

by 2016

2013

2017

AUSTRALIANS ARE AVID ONLINE SHOPPERS

In 2013, Roy Morgan Research found that 50.3% of Australians
shopped online. In the same year, LivePerson's research revealed
that 32% of online shoppers spent more time shopping online than
in-store. Roy Morgan Research also found that by 2014, 38% of
consumers above 14 years were making an online purchase monthly.

32

AU $4.9 billion

spend more time

shopping online
than in-store

2013

SOCIAL IS SIZEABLE
Australias social commerce market in 2013 had an estimated value of AU
$300 million (Frost & Sullivan). By November 2014, there were 13.6 million
Facebook users (57.4% of the population), 4.5 million on Tumblr (19%) and
2.79 million on Twitter (11.8%), highlighting a signicant audience size for
social commerce.

2014

WHAT AUSTRALIANS ARE BUYING ONLINE

According to NABs Retail Sales Index in 2014, the main contributors to
online retail sales were department & variety stores, media and groceries
& liquor. Together, this accounted for 74.4% of total increase in online sales
from January 2013 to January 2014.

Popular Online Product Categories (2014)

Social Media in Australia (2014)

Department and
variety stores

34%

Home wares
and appliances

57.4%
11.78%

AVERAGE 3.1 MOBILE

DEVICES PER PERSON

AU $6 billion

in 2013

Australians are highly connected, with an average of 3.1 devices per person,
one of the highest rates worldwide (Google Consumer Barometer). The
report also found that 23% of shoppers used their smartphones during
their last purchase. Frost & Sullivan reported that mobile commerce
accounted for 27% of all online shopping purchases in 2013. The $4.9
billion spent through mobile commerce quickly grew to an estimated AU$6
billion by 2014.

Growth in Mobile Commerce

%
50.3
shopped online

MOBILE'S INFLUENCE ON ECOMMERCE

17%
15%

Groceries and liquor

18.99%

Media
(books/movies/music)

12%
11%

Fashion
Personal and
recreational goods

6%
3%

Daily deals

Social Commerce worth

Electronic games
and toys

AU $300 million

KEY ONLINE RETAILERS

In October 2014, the leading retailers were eBay, Gumtree and Amazon,
according to Experian Hitwise Australia. Major local brands are also
creating online stores and many now feature prominently in Australia's
top eCommerce sites. Other popular international eCommerce retailers
also include ASOS, Etsy and AliExpress.

2%

CHALLENGES IN DELIVERY AND FULFILMENT

A 2013 PowerRetail survey revealed that only 20% of Australian
eCommerce operators offered free shipping for their customers. Despite a
strong local logistics infrastructure, 30% of Australian eCommerce
operators cited efcient order fullment and managing shipping costs as
their biggest challenges. With over 50% of online shopping done cross
border, there is pressure for local eCommerce players to stay competitive
by offering same-day delivery and delivering to multiple locations.
Delivery companies such as CouriersPlease, one of Australias leading
metropolitan parcel delivery businesses and part of the SingPost Group,
leverage upon extensive national coverage and low cost networks to
serve the growing demand and deliver great customer experience.

Top 5 eCommerce Sites (2014)

Australia

WED

12

WED

12
WED

12
WED

12

AUSTRALIANS LOVE CROSS BORDER SHOPPING

In 2013, yStats found that over 50% of all online purchases in Australia
were cross border. This may be because imported products with a value
under AU $1,000 are exempt from customs, duties and taxes. A 2014 Pitney
Bowes study also found that 63% of Australians would be happy to shop
internationally. This is supported by a 2014 report from Research and
Markets that found Australian consumers to be one of the most active
buyers from international retailers.

10

A SIGNIFICANT SHOWROOMING SCENE

A 2014 Credit Card Selector study revealed that 58% of participants
engaged in showrooming. According to Nielsen, 60% of consumers used a
combination of online research and in-store research before deciding to
buy in that same year, indicating that showrooming is a widespread and
growing trend in Australia.

SALE!

50

% OF ECOMMERCE

IS CROSS BORDER

58

% ENGAGED IN

SHOWROOMING

SOURCES:

Alexa, Consumerist, Credit Card Selector, Econsultancy, eMarketer, Frost & Sullivan, Google Consumer Barometer, Internet Live Stats, LivePerson, National Australia Bank, Nielsen,
Pitney Bowes, PowerRetail, Research and Markets, Roy Morgan Research, Shopify, Social Media Today, yStats.

eCommerce in Australia: 10 Key Insights

Want
to learn more about how SingPost eCommerce can support your online business in Australia
2015 Singapore Post Limited. All Rights Reserved.
and
the Asia
Pacic region?
Contact biz@specommerce.com
For more
information,
visit www.specommerce.com/knowledge-centre
eCommerce in Australia: 10 Key Insights
2015 Singapore Post Limited. All Rights Reserved.
For more information, visit www.specommerce.com/knowledge-centre

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