The State of Australia’s Ecommerce in 2019.

The State of Australia’s Ecommerce in 2019.

26 July, 2019
Posted by Admin

How fast is ecommerce growing in Australia?

1. Australian Ecommerce market value will be A$35.2 billion by 2021.

Australia is currently the 10th largest ecommerce market in the world by revenue. Ecommerce in Australia will continue to grow over the upcoming years. The market size will be about A$35.2 billion (US$ 25.2 billion) by 2021.

2. Eight out of ten Australians shop online. By 2020, every one out of ten items will be bought online.

As of February 2019, 80.8% of people in Australia are shopping online and very soon one out of every ten items will be purchased off ecommerce stores. By 2021, the ecommerce market penetration rate will reach 85.2%, and the number of people buying online will be 22.0 million.

3. Australia’s ecommerce industry is expected to have a 15.1% revenue growth in 2019.

However, statistical analysis shows that this rate will start to slow down in future and by 2021 the revenue growth rate will be down to 7.4%.
As the number of online shops grows, so does the competition. Not only will online retailers face up against huge home-grown contenders and international players like Amazon, but they’ll also be competing to meet the increasing customer demands.
So although we’ll see a growth in online shoppers, the rising business operation costs will keep the revenue growth in check. 

Australian online shopping trends

4. Department and variety stores are the fastest growing ecommerce segment in Australia.

Online department and variety stores saw a 29.6% growth in 2018, and this trend is likely to continue in 2019. The graph below shows year on year growth rate for different market segments based on ecommerce statistics from the last two years.

5. Third-party mobile and online payments are gaining popularity.

Currently, 47% of online shoppers in Australia use credit cards to buy products online. 29% of Australians use services like PayPal. While these are the current standings, third-party payment systems or E-wallets like PayPal, Alipay, or Amazon Payments are seeing a rise in the future. By 2023 about 37% of online payments will be processed via e-wallets.

6. Australian online shoppers receive 2.3 parcels per year.

People are spending more on time shopping online, and are also buying more frequently. Australian shoppers who were over 18 received an average of 1.9 parcels in 2017. In 2018, the average number of parcel received increased by 21% and reached 2.3. This number is most likely to grow even more by the end of 2019.

Australian consumers are becoming more environmentally conscious. 60% online shoppers want parcels to have sustainable packaging. 

7. Australians are fast adopting international shopping traditions.

Last year’s Black Friday and Cyber Monday sales saw a 28% growth in online shopping. It’s now become the biggest online shopping week of the year. End of financial year sales also grew by 30% in 2018. These numbers show that Australians use these sales to save and enjoy online bargain hunting.

People have even started to purchase seasonal items online, rather than in stores. Last December saw a 41% increase in the online purchase of food and liquor compared to 2017.

8. 25% of online sales in Australia were made through mobile devices.

According to the latest PayPal m-Commerce Index, one in four shoppers in Australia will purchase items from their mobile phones. Though 63% of Australians still prefer desktops or laptops, online shopping using mobiles is gaining more and more popularity. 48% of people shop via mobile at least once a week.

9. 65.5% online orders placed by Australians come with free shipping.

Shipping costs seem to be the deal breaker for most Australians. 65.5% of total orders delivered last year had free shipping. In fact, 60% Australians will abandon a shopping cart if the shipping cost is higher than expected.

Global ecommerce trends

10. The global ecommerce market size will reach A$3.5 trillion (US$2.5 trillion) in revenue by 2021.

The 2019 global ecommerce market size is A$2.8 trillion (US$2.0 trillion), 11.3% larger than 2018. By 2021, the market will grow by 25%.

Here are the top 10 countries based on ecommerce market size in 2019:

South Korea

11. 57% online shoppers make purchases from overseas retailers.

There’s a significant potential for growth when it comes to ecommerce businesses who are looking to expand beyond borders. Big Australian businesses should especially look for more opportunities in international expansion as the growth rate of ecommerce user number in Australia is reaching its saturation point.

12. 40% of Australian shoppers’ most

Recent purchases were from China
China is the most popular global ecommerce destination for Australians, followed by the United States and the United Kingdom. 21% online shoppers have made their most recent online purchase from the US and 14% from the UK.

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