E-commerce & Shopping Trends of Australia
Australia is an amazing option for individuals and companies to take their businesses to because it has one of the steadiest economies in the world. So, if you’re thinking about expanding your business there, you’ve chosen the right place.
To help you understand the process better, below is a list of the most important things you’ll need to know in order to succeed in the land down under.
Growth in Interest in E-commerce
Interest in online shopping exploded in Australia in 2020, making it the highest e-commerce growth on Earth. It’s estimated that Australians spent over $50 billion on online shopping from January 2020 until January 2021, and the number is still growing steadily. According to Australia Post, online purchases in 2020 grew by 57% YOY (year-over-year), and it is reported that 1.3 million new households shopped online in comparison with 2019, making it a total of over 9.5 million online-shopping households for the year. It seems like Aussies are noticing the benefits of e-commerce, so this might be the right time for you to look into expanding your business here. Don’t miss out on this chance—it could be your candles or homemade ornaments go viral amongst Australian shoppers.
Men and women aged 18-34 make up the biggest % of online buyers. With 40% of men preferring to buy everything online, this is a big surprise compared to less than 30% of women of the same age.
Australia doesn’t differ much from other countries in terms of what’s trending with the general public.
Fashion is the current no.1 e-commerce market, and it is estimated that buyers are going to spend over $790 billion on fashion items this year. Most buy their clothes and accessories from online stores on Amazon (c. 55%), as well as Etsy, Instagram, Pinterest, and Facebook.
The beauty sector is second in popularity with Australians, and it is expected to reach a worth of $750 billion by 2024. People are mostly interested in personal care, followed by skincare products, then makeup, and lastly—fragrances. Amazon, eBay, Etsy, YouTube, and Instagram are the biggest platforms for these types of businesses, although many smaller businesses like yours choose to open their own websites and sell their products direct to consumers. This is a great time to expand your market internationally with the help of PackageHopper. While you handle the orders, we’ll simplify the shipping process so much that you’ll wonder why you didn’t open your wares to Australians yet!
Variety stores have grown 17% in popularity over the past year and a half, taking the third place. Buyers ordered furniture, electronics, books, electrical appliances, medicine, etc., mostly from websites of domestic stores.
It is worth mentioning that over 80% of Australians like to conduct some sort of research before buying a product, so make sure you present yourself in the best way possible. We’ll have some tips and tricks to ensure your e-commerce business is staying ahead of the game. The competition is fierce out there!
Now that you know what to offer, let’s see when Australians like to shop the most and how they prefer to pay for their goods.
The Australian Economy
Australia is running steady thanks to a mixed economy that consists of planned economy, market economy, free markets, and private with public enterprise. This means there is a lot of healthy competition between the public and private sectors. This gives everyone an equal chance to succeed and make profit.
Australia is ranked as the 12th largest national economy by nominal GDP in 2021 ($1,61 trillion), and it is the 25th largest merchandise exporter and 20th largest merchandise importer. Great stats for both shippers and shoppers, isn’t it?
Preferred Payment Methods
Since so many households purchased online in 2020, it is more than obvious that most used their cards to pay. A research graph from 2019 shows that even without a pandemic going on, 52% of Australians preferred to pay with cards, 22% used their phones i.e. digital wallets, 13% bank-to-bank transfer, 7% paid with cash, and the rest 6% used other/unspecified methods of payment.
Packing and Taxes
Obviously, you’ll want to have everything packed neatly, and make sure your brand is recognizable for the customers. Pay special attention to fragile items such as glass, thin wood, plastic, etc. Another important thing that you must do is describe the item as accurately as possible. Print and put on the labels that were provided for your package and then drop it off. That will make it easier for both our carriers and customs in Australia to identify and confirm that the item is as described, and it might save you precious time i.e. the item(s) will not be held at customs for very long (and a long wait is never great for the customers).
As always, make sure you’re not sending any restricted items, and remember that customs officers will be checking the true value of your package, so you may need to pay fees for some items even if they’re listed as gifts.
Long story short: gather as much information as possible before shipping.
Shipping and Delivery Expectations
Australian consumers prefer to have fast shipping options and are not worried if they have to pay a few extra dollars for overnight shipping. In fact, research from BigCommerce shows that 3 in 5 Australians will choose to pay more for faster delivery (something you won’t have to worry about using PackageHopper’s affordable rates), and 1 in 5 are willing to give up their morning coffee for shipping costs.
Nevertheless, they are not afraid to halt if they are not satisfied with the delivery. Therefore, merchants should be careful because 51% of the participants in the study said they stopped buying from an online store after a bad shipping experience, and 45% of shoppers declared they did not want to buy from brands that didn’t offer free or low shipping rates.
Don’t let one bad shipping experience leave a bad taste for your customers, and trust PackageHopper to send off your orders with speed and care.
Best Times to Get Noticed
Timing plays a crucial role in getting noticed and every aspiring shipper must learn to adapt to the time zones in their country of choice.
Please note that Australia has 3 time zones (Australian Western Standard Time (AWST), Australian Central Standard Time (ACST) and Australian Eastern Standard Time (AEST),and the following hours apply to their respective time zones.
The best days to advertise your product is on the weekends: 8 AM – 5 PM (10 PM – 7 AM UTC) on Saturdays, 11 AM – 7 PM (1 AM – 9 AM UTC) on Sundays, and on public holidays from 11 AM to 7 PM (1 AM – 9 AM UTC). If you still choose workdays, make sure to post your products between 7-9 AM (9-11 PM UTC) when people just need that little dose of endorphins before work (buying something you like sure helps your brain release them), or after 7 PM (9 AM UTC) when everyone likes to relax and browse the Internet to see if they’d missed something (your amazing offer, for instance).
It may be a little confusing in the beginning, but once you get to grips with the timing, how the Australian market works, and what the consumers like, you’ll have no problem getting attention and sales. All you’ll have to do after that is stay consistent, creative and in touch with your community, which brings us to the next section.
Build Trust and Be Responsive
This applies to all customers, not only Australians—people like friendly and responsive service. You need to be able to quickly respond to inquiries and remember to be friendly and courteous with potential clients.
A great way to show off your products and provide a direct line of communication is by keeping up with a social media account for your shop! Your customers will love being able to stay connected and know when the latest product drop will be, and you can curate and define your brand.
And with PackageHopper at your side, shoppers know that their orders will arrive on-time and you will never be intimidated by international orders again!
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