When you compare the figures to the ‘powerhouses’ of China (US$574 billion by 2019) and the United States (US$536 billion by 2019), Australia may appear a small fish in a big pond1. But when you consider its population is 2% of China’s and that Australian shoppers will spend roughly US$3,400 each online this year, you can see how important e-Commerce is ‘Down Under’2.
In this two part blog, we delve a bit deeper into what Australia has to offer and how you can maximise on this opportunity…
Highly connected population
As well as high Internet penetration, m-Commerce is growing in Australia. According to Google’s Consumer Barometer, Australian’s have an average of 3.1 devices per person – which is one of the highest in the world2. So, it’s probably not surprising to hear that m-Commerce is predicted to grow by almost 120%, to reach $US13 billion by 2019.1
So, in order to maximise the e-Commerce opportunities, its key your site is optimised for mobile. Providing a superior mobile customer experience will put you ahead of the competition. A report by Episerver found that Australian retailers are failing when it comes to mobile – with an average satisfaction score of just 34%. The report also highlighted that 60% of Australian consumers won’t try a desktop site if they can’t access the mobile version, and 46% state that a poor mobile experience reduces the likelihood they’ll make a purchase.3
Consider whether an app is the right route to market. Although research has shown apps are often downloaded – but never used – Episerver state that 65% of Australian consumers have made a purchase via a retailer’s mobile app.3
They’re a social lot
Recent figures published by eMarketer showed that by 2019, there will be 12.5 million social media users in Australia – which equates to 69% of Internet users. And Facebook is ruling the roost amongst younger Australians, with 78% of 18 – 34 year olds using the platform on a daily basis4.
Australian shoppers rely heavily on social media when it comes to researching purchases. According to Sensis, 20% of consumers use social media to research products and 58% of those say this resulted in a purchase2.
To maximise the e-Commerce potential, it’s therefore vital that your business has a presence on social media. Facebook Advertising will allow you to grow your audience – enabling you to target specific demographics. But you’ll need to ensure you keep the content on your page fresh – and constantly monitor engagement to ensure you’re dealing with any questions or complaints as quickly as possible. Facebook actually rewards quick responses, with a ‘Very responsive to messages’ badge, which is achieved by responding to 90% of messages within 15 minutes.
And of course, social platforms like Facebook, Instagram & Pinterest offer ‘buy buttons’ – allowing you to sell directly from social. Although social commerce hasn’t set the world alight (they account for approx. 1.8% of eCommerce sales5), they give your customers choice – which has to be a good thing!
To be continued…
Keep an eye out for Part 2 of our blog on Australian eCommerce – coming soon! If you’d like to find out more now, then you can download our Australia brochure.Download brochure