At first glance, Australia might not look like an ecommerce paradise. It is far away and sparsely populated, but that is exactly the point — these conditions have actually enhanced Australians’ appreciation for online shopping and shipping. Add to that the fact that the country boasts the world’s fastest-growing ecommerce market, and you can see why Australia offers a prime market for ecommerce businesses. New ecommerce resources, too, make the market increasingly accessible, so Australian ecommerce is not only possible, but profitable.
Here is a deeper look into what makes Australia a great market for ecommerce merchants.
Serious buying power. When shopping online, Australians tend to have deep pockets. The country leads digital buyer spending for all Asia-Pacific markets and research shows that the average Australian digital buyer is predicted tospend $4,500 in 2016. In other words, you’ll get more bang for your buck by selling to Australian consumers; your infrastructure and marketing dollars are likely to go further with them than with others. This dynamic suggests that Australians might be ideal candidates for promotions, like reduced or free ecommerce shipping costs once a given sales threshold is reached. Such deals, made possible with the right business strategy and ecommerce fulfillment program, provide a strong incentive for buyers to add more to their carts and will simultaneously raise your sales average.
Great consumer dynamics. Unfamiliar territory can be intimidating at first, but the Australian market offers an easy cultural fit for North American companies looking to do business in Australia. With a shared language and similar cultural norms, you don’t need to overhaul your marketing or sales approaches to reach Australian consumers. And reach them you can: Though they are spread throughout their continent, Australians are hyper-connected. Last year, 77 percent of the population over age 14 made at least one online purchase, according to data from eMarketer. With 94 percent of the population connected to the internet – a reflection of the country’s economic prosperity — there are more opportunities than ever to access shoppers, sell goods, and build your brand. And don’t forget about omnichannel marketing; you want your product’s superior quality and price point to be highly visible across the web, so look for multiple places to advertise it. Finally, to really win over your customers, wow them with your ecommerce fulfillment process by offering them an easy, affordable, and fast shipping experience.
Huge market opportunity. Thanks in part to Australia’s remote location and isolation, local retailers haven’t had to innovate much beyond their brick-and-mortar presences to maintain business; they remain a little sluggish when it comes to the ecommerce revolution. That’s good news for ecommerce retailers, because the market is ripe for new entrants in the form of foreign sellers with access to distribution networks. While the old guard struggles to catch up, you can take advantage of (virtual) first-mover advantages. Something to consider — if you’re managing a business from abroad, consider the possibility of outsourcing your local operations to make life easier and business more efficient.
Australians appreciate almost-instant gratification. Overtime, Australian shoppers have come to terms with the notion of deprivation. In terms of product selection, price, and shipping speed, they haven’t always had the luxury of options. And let’s face it: Australia’s geography doesn’t exactly lend itself to speedy shipping – or so consumers have been led to believe. The country sits at the very end of already long supply chains for most North American shippers. Sometimes, goods produced in neighboring Asia make it all the way to the United States and back before ever reaching Australia. That’s a lot of waiting, and a lot of costs tied up in shipping. Unsurprisingly, buyers are keen on goods that give them greater selection, arrive fast, and don’t come with exorbitant shipping costs.
It doesn’t have to be hard: Ecommerce fulfillment solutions can revolutionize shopping for many Australian consumers. And with the right logistics in place, they can also transform business for you. The right partner will pivot Australia’s logistical challenges to your advantage, so you can focus on what you do best: ensuring your business takes advantage of the country’s explosive ecommerce growth.
The decision to embark on a new frontier is a big one, but the one-two punch of a rapidly growing ecommerce market combined with the logistical opportunity to serve previously out-of-reach buyers makes Australia a compelling option for possible footprint expansion.