Online shopping is a way of life in Australia. According to National Australia Bank, online retail spending in Australia increased by 10 percent, to $17.6 billion, in 2023. This compares to roughly $562 billion for China, the country with the highest ecommerce sales, and to $350 billion for the U.S.
When it comes to online shopping, Aussie shoppers favor Amazon, eBay Australia, and Gumtree (a classified ads site that is owned by eBay). These numbers may appear small, but Australia’s population is 2 percent the size of China’s. Additionally, Australia has more than 90 percent of the population has Internet access. Obviously, online shopping has become the norm rather than just a trend for Australian consumers.
Google’s Consumer Barometer, also noted that Australians are highly connected, literally, with an average of 3.1 devices per person, one of the highest rates worldwide. Of curious interest is that despite this high penetration, retailers are struggling to provide a compelling mobile experience to their customers, as noted in Episerver’s “Mobile Commerce 2023” report.
Australian shoppers are actively using social media and rely on it to make purchasing decisions. According to Sensis, an Australia-based marketing firm, roughly 20 percent of Aussies use social media to research products. It also reported that 58 percent of consumers reported that their social media research resulted in a purchase.
Ecommerce sellers can therefore benefit from establishing social media presences and investing in social media marketing. This will attract new buyers and retain loyal customers, while sharing news of its brand.
Australian Online Spending Habits
According to a report by Price Waterhouse Coopers, they predicted that Australian consumers will lead the Asia-Pacific region in ecommerce spending in 2024, at roughly $4,500 apiece. This is much higher than in 2022, when Australian shoppers reportedly spent $2,802 each, on average. Australian shoppers buy products online frequently, in other words. In addition to the same popular payment methods that other countries use—Visa, MasterCard, Discover, and American Express, debit cards, PayPal, Australians can also use POLi.
POLi, a real-time bank transfer that is also offered by Australia Post and offered by many Australian merchants. POLi lets merchants accept payments from customers with an Internet-enabled Australian bank account. Customers just choose the POLi payment method on the merchant’s website to pay for their purchases. These options make it that much easier for Australians buy online simply and quickly.
Cross-border Commerce Creates Global Opportunities
While Australians buy from local sellers, they also extensively shop from merchants in other countries. This is mostly due to zero customs duty or taxes on orders below AU $1,000. This Australian online shopping trend makes it easier for existing U.S.-based retailers to market their offerings to Australian shoppers and ship the orders to Australia.
Australia is a great market for sellers looking to expand globally. They have fast and easy access to technology and a preference for online shopping, including cross-border shopping. Sellers seeking an Australian market can use Australian logistics services, such as warehousing providers, shipping and logistics companies for product fulfillment.
