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eCommerce Environment

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The Australian digital market is very interesting to international merchants for a number of reasons, not least consumer willingness to shop cross border and their access to the internet. There are 21 million Internet users out of a population of nearly 24 million, a penetration level of over 80%.


There were 12,691,000 internet subscribers in Australia at the end of December 2014. This is an increase of 2% from the end of December 2013. A year later, 99% of internet connections were broadband.


Websites aimed at Australian consumers can have domain names including the country code top level domain (ccTLD) .au. At the time of writing, there are over 3 million .au domain names registered. The domains available are: .com.au, .net.au and .org.au.


Mobile

Mobile is playing an increasingly important role with consumers accessing digital services. In 2013 there were over 7.5 million users and 62% of Australian mobile owners are internet connected smartphone users. This adoption increased from 52% in 2012, according to The Telstra Smartphone Index.


In 2014, 55% of mobile web users used a mobile device as their favoured means of going online, often instead of using a laptop/desktop. This uptake represented an increase of 15% over the previous year.


What is also becoming clear is that using these devices makes access to the internet more available or ‘omni-present’; 53% of Australian smartphone users access the internet more than 5 times a day – with 20% going online 15 times a day or more.


eCommerce overview

Leading online retailers 2015

 

Looking at the domestic picture, SmartCompany reported in March 2015 that the following brands were leading the online retail pack in Australia:


1. Temple & Webster
2. Kogan
3. The Iconic
4. Catch of the Day
5. Booktopia
6. JB Hi-Fi
7. Red Balloon
8. Dan Murphey’s
9. Lorna Jane
10. Shoes of Prey

National Australia Bank’s (NAB) latest Online Retail Sales Index shows Australians spent $14.9bn online in the year to January 2014, up $1.9bn or 11.3% on the previous year.


On average, digital consumers are spending $2,616 per year. With these figures in mind, it is worth noting Australia is in the global top 10 for e-commerce sales, according to the A.T Kearney 2015 Global Retail E-Commerce Index.


Retail in Australia in 2015 is expected to be worth $238.59bn with e-tetail worth 3.1% of the total. Excluding travel and event tickets, e-retail will be worth nearly $11bn in 2015. The variance between these figures and those presented by the NBA previously, can be explained by the difference in which type of transactions are included, as well as currency fluctuations.


Further information

If you'd like to see an extended version of this information, please see the 'eCommerce Environment' section of our passport.

 

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Marketing and Branding

Marketing and Branding

Marketing and Branding This section explores the most popular and effective marketing mechanisms in Australia.
Business Environment

Business Environment

Business Environment This section examines the Australia political and socio-economic environment and how it will affect your online business.
Finance and Payments

Finance and Payments

Finance and Payments This section documents the key financial information you should take into account before trading into Australia.
Legal

Legal

Legal This section provides an overview of the legal framework of Australia.
Logistics

Logistics

Logistics This section examines significant trends, advances and practices in Australian logistics and delivery.

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