Author: Fran Ereira, Vice President of Asia Pacific, Temando
Image: Hosier Lane, a famous laneway in Melbourne, Australia, is a favourite with many shoppers due to its colourful graffiti art and proximity to the city’s shopping precinct.
A worldwide eighties hit, ‘Down Under’, from Australian band Men At Work may still be sung at karaoke bars the world over, but since then much has changed in Australia. Nowhere do we see its transformation more clearly than in retail; digital adoption, increasing accessibility, and economic stability resulted in online retail sales1 of USD $9.5 bn last year, which are projected to reach USD $15.4 bn by 2021. However, this success is not without its challenges.
As a retailer looking to enter Australia, you’ll need to be aware of how shipping in this widely fragmented country can affect your business, and what you need to do to meet customer expectations. As the sixth largest country in the world at 7.7 million square kilometers, it may sound like there’s plenty of space for its 24 million residents, but 90% of its population are city-dwellers in one of the many ranked as the world’s most livable cities. Here are two unique differentiators about Australia’s eCommerce landscape:
Now let’s look at some tips for eCommerce shipping to Australia.
For The Delivery Advantage, a Temando report on eCommerce shipping strategies, we surveyed 4,128 shoppers and 852 retailers, out of which 1011 shoppers and 212 retailers were Australian. Based on the research, we found that 92% of Australians spent up to AUS $500 monthly online, with over a third spending at least AUS $100 monthly. The convenience of round-the-clock accessibility trumps price and free shipping as reasons why they shop online. Shipping played a significant role in cart abandonment, with 85% of Australians admitting to abandoning their carts primarily due to shipping-related reasons.
Five key facts:
From this research, it’s safe to conclude that getting shipping right can have a significant impact on your eCommerce business. 79% of Australian retailers saw an increase in sales when they increased the number of shipping options at checkout, with 20% reporting substantial increases. So refining your shipping strategy to reflect the needs of Australians prior to launching your site in the country can make the journey that much smoother. Here’s some tips to help you get started:
Doing business in Australia is tough, yet if you get it right, is rewarding. Here’s two local retailers – who cannot be more different than the other – that have found common ground in their quest for innovation:
Image: CNET | In 2016, Myer collaborated with eBay to reinforce its position as a forward-thinking retailer, by launching the world’s first virtual reality department store - complete with its own branded ‘shoptacles’.
Screenshots source: THE ICONIC | THE ICONIC is one of the first Australian pure-play retailers who have invested heavily in the post purchase experience with five great shipping options: hyperlocal, after hours, same-day, express, standard, and weekend shipping.
The questions that you’ll need to ask yourself now are:
Are you able to offer Australians with an outstanding shopping experience? Are you equipped to turn shipping into a profitable value proposition? What tools do you need to get there?
Don’t let shipping plunder your profits, when it can very well be the key differentiator when you launch your eCommerce store in the land down under.
Download The Delivery Advantage ebook for more ideas on improving your shipping strategy.
Note: Unless referenced, all data in this article is from an online retailing survey that Temando commissioned in 2016, which includes participation from 1011 online shoppers and 212 retailers from Australia.