In 2017, B2C ecommerce turnover rose to just over
USD 36 billion, up 9%
from 2016. This is expected to grow
in the coming year to a forecasted USD 41.7
the projected growth rate of 13%.
‘Most large- and medium-sized Australian
retailers have a digital transformation roadmap on which they are well
progressed. They are now at the point of embracing the second generation of
ecommerce solutions, having outgrown in-house technologies and niche
providers. B2B organizations are
emerging strongly as the next wave of ecommerce sellers since they can deliver
customer-facing quick wins while engaging in transformations of their
Arnold, VP of Marketing, SAP Customer Experience, Asia Pacific Japan/Greater
Ecommerce Foundation’s Australia Ecommerce Report delves into the details of the Australia B2C ecommerce market, consumer behaviors, and trends. The report also includes expert interviews with leading logistics providers and retailers in the Australian ecommerce market, including Mazars and SAP.
The Ecommerce Landscape in Australia
Internet penetration is on the rise in Australia, with 88% of the population forecasted to be using the internet in 2018, slightly up from the 2017 figure of 87%. Of the 88% of the population online, an estimated 81% will buy online in 2018. Australia ranks 18th in the Logistical Performance Index, 14th in the Ease of Doing Business Index, and the 2nd in the E-government Index.
Australia Ecommerce Consumers
'Research shows that Australians lead the world in online shopping cart abandonment. They are particularly price-savvy, with 60% of those surveyed abandoning their cart when shipping costs are higher than expected and 46% using their carts primarily to compare prices with other brands.' - Jennifer Arnold, VP of Marketing, SAP Customer Experience, Asia Pacific Japan/Greater China
Most of what consumers in Australia are buying online consists of clothing (47%), multimedia products (37%), and consumer electronics (31%). When asked which payment methods were most commonly used or had been used in the past, online payments (PayPal, Amazon Payments) were in first place with 67%, followed by credit cards (51%), and direct debit (46%).
eBay is the leading online store in Australia with over 9 million unique visitors followed by Gumtree with over 5 million unique visitors. Moreover, Australian consumers have some interesting behaviors similar to other countries. For example, when the majority of online shoppers are planning a major purchase, they do research on the internet first (59%), and most (40%) find consumer reviews on the internet very helpful.
Check out the infographic below for report highlights from Ecommerce Foundation.