The importance of online shopping to Australia’s retailers has been highlighted after Australia Post revealed that a record $21.3bn in online shopping last year, an 18.7 per cent increase compared with 2016.
While consumer electronics, clothing and books were the top online expenditure, Australia Post’s Inside Australian Online Shopping Report, highlighted that over $1.6bn of online spend was made through Buy Now, Pay Later, a service which could work for many alcohol and convenience retailers. Buy Now, Pay Later payment services accounted for 7.7 per cent of total online goods spend in 2017.
Australia Post General Manager for Parcels & Express Services, Ben Franzi, said Australians shopped online to access greater value, choice and convenience, and a clear example of this was the rise of online market places.
“Marketplaces – such as Amazon, eBay and Etsy – are booming, growing 74.8 per cent in the past year alone,” Franzi said.
“Australians really appreciate the convenience of being able to access goods from a variety of sellers in the one location.
“In the past year we have seen new marketplace entrants, which is always great to see, in recognising the increased customer traffic that this type of format offers.”
Franzi said marketplaces – such as Alibaba’s Tmall Global and JD.com – were also helping Australian retailers access the lucrative international market, the total online spend of which has increased 46.7 per cent to $US1.57trn ($A2.08trn) in the past two years.
“Marketplaces make it easier for consumers in our key export markets – China, United States, and India – find Australian products and offer a more convenient way for local businesses to start selling overseas.
“By 2019, total online goods purchases from across the globe is set to reach $US2.16trn ($A2.86trn), so this market represents a huge opportunity for Australian retailers.”
While the November/December remained the biggest time of the year in terms of volumes, as people geared up their Christmas shopping, the May/June period posted the strongest growth during 2017, with online purchases increasing by 32.2 per cent. Franzi said this growth was attributed the increase to retailers offering end of financial year sales for longer, in some cases more than six weeks.
Point Cook in Victoria remained Australia’s number one online buying location in 2017, recording 22.6 per cent growth. Toowoomba was the second biggest buying location, growing at 19.5 per cent, while Liverpool was the third biggest, growing 21.1 per cent.