With 1.2 billion monthly visits, the platform is open to Chinese sellers

The COVID-19 pandemic has accelerated the development of global e-commerce. Due to various blockades and travel restrictions, more than 9 million households in Australia shopped online in 2020, accounting for 82% of all households. According to data company analysis, the local e-commerce market is expected to reach 91.5 billion Australian dollars, or about 70 billion US dollars, in 2025.

Umart is Australia's largest electronics retailer, with 1.2 billion visits to its platform each month. Computers and accessories, electronic appliances and other products are very popular. A seller from Dongguan has achieved good results after joining the platform. Currently, the platform is open to Chinese sellers and hopes to expand product categories such as smart products and sports goods. For sellers who are tired of low-price competition, this may be a good choice.

Australia's e-commerce market to reach $70 billion

Australia has a population of 25 million and is one of the world's largest e-commerce markets. In the past few years, the size of the local e-commerce market has continued to grow rapidly.

A report from Australia Post shows that in 2020, 9 million Australian households shopped online, accounting for 82% of all Australian households; 1.3 million of them were first-time online shoppers. Between March and December, a quarter of Australians shopped online at least 10 times, with fashion products being the most popular.

A statistical data shows that between May 2020 and 2021, Australians spent 48.1 billion Australian dollars on online shopping, accounting for about 13.2% of total retail sales (NAB). As shown in the figure below, the proportion of online sales in Australia's retail sales has increased significantly.

(Source: NAB Online Retail Sales Index, ABS, JLL Research)

Data analytics company GlobalData said the coronavirus pandemic has further accelerated the shift from offline to online sales . One of its analysts commented: "The pandemic has accelerated e-commerce activity in the country as cautious consumers stayed at home to avoid exposure to the coronavirus. This trend will continue to be driven by the increase in new online shoppers."

According to GlobalData analysis, Australia's e-commerce sales grew by 16.8% in 2020 and are expected to grow by 13.4% in 2021 to reach A$60.6 billion (US$46.7 billion); the local market size is expected to reach A$91.5 billion (US$70 billion) in 2025 .

Who spends more online? A previous study showed that Australians aged 35-44 contribute 24% to Internet sales. In addition, the participation rates of people aged 25-34 and 45-54 are also over 20%.

Which regions have the most online shopping? In the 2021 financial year, 79.7% of online shopping took place in the eastern states of Australia. In the 12 months ending July 1, 2021, New South Wales contributed 31.6% of online purchases, followed by Victoria 30%, Queensland 18.1%, and other states shared the remaining 20.3%.

What is the most popular purchasing device? 90% of consumers think mobile shopping is the most convenient. According to research, the Australian mobile commerce market is expected to grow at a compound annual growth rate of 16.5% by 2023, and the market share of mobile commerce will exceed US$22 billion.

Electronic products are hot-selling, and Umart platform has 1.2 billion monthly visits

Australians love fashion items. During Black Friday last year, Australian sales were nearly three times higher than in 2020, with more spending on clothing and shoes, and computers, electrical appliances, toys, etc. were also popular. In places such as Victoria, where online shopping is popular, household items and home appliances are quite popular.

Amid the long-term epidemic lockdown and travel restrictions, online purchases of groceries and electronic products in Australia have grown strongly, and electronic product sales platforms have attracted attention.

Umart is Australia's largest electronics retailer , with 11 retail stores across Australia . Computers and parts, electronic appliances, etc. are very popular on the Umart platform, and toys, lamps and other categories of products are also on sale.

In 2020, Umart piloted an open platform, allowing other merchants to settle in and sell products. The monthly income of the sellers exceeded 100,000 Australian dollars. That year, Umart's turnover reached 160 million Australian dollars.

Due to the epidemic, Umart has not opened up a large number of merchants. Currently, the platform has 1.2 billion monthly visits , and its partners include technology giants such as AMD, Intel, and Microsoft. Among the merchants who have settled in, a Taiwanese seller has an annual sales volume of over 1.5 million Australian dollars, and another Dongguan seller has a sales volume of 700,000 Australian dollars.

Unlike most third-party platforms, Umart's cooperation model with sellers is that sellers ship their products to Umart in advance , and the latter displays and sells them on the platform. The platform can provide sellers with order execution, logistics and delivery, one-stop warehouse management, and local pre-sales and after-sales support.

These platform supports are due to Umart's strong logistics capabilities. In Australia, Umart has three robot-based automatic distribution centers, and the upgrade projects of automatic distribution centers in Melbourne and Sydney will also be completed in 2022.

The main computer parts and electronic products have received constant praise, but Umart intends to continue to expand the platform's product categories, such as smart products, sports equipment and maker products.

( Umart website user review )

Recently, Umart has opened up for investment in China. Peter, chairman of Umart, said that the platform is open to Chinese sellers in order to expand product categories. He hopes that both parties can cooperate to give full play to their respective advantages, with Chinese sellers/factories responsible for the supply chain and Umart responsible for promotion and marketing, to promote good Chinese brands to the Australian market.

Umart opens to Chinese sellers

Compared with most platforms, some of Umart’s operating characteristics seem to be more attractive to buyers.

First of all, on Umart, the names of the merchants will not be displayed together with the products on the front desk. From the customer's perspective, all products are from Umart, and buyers' purchasing confidence is enhanced.

Secondly, buyers can purchase products from different merchants together, and the platform will ship them at the same time, so that the entire order arrives at the same time, which can lead to better customer satisfaction and reduce shipping costs.

Third, Umart will handle all pre- and post-purchase support ( without third-party involvement ) , including the inbound and outbound shipment of goods, after-sales warranty, returns, complaints and inquiries. This saves sellers a lot of effort.

( Umart Warehouse)

With its experience and reputation since its establishment 22 years ago , 99% of the orders on the platform are shipped on the same day and arrive within the same week , winning the trust of Australian consumers.

Regarding this investment promotion in China, Umart said it will select high-quality cross-border e-commerce sellers after screening to avoid overcrowding of products on the platform and unnecessary vicious price competition, which is also a major advantage. Compared with the extreme price involution on many platforms, it is clear here.

Peter said that most products sold in Australia are made in China, but are labeled with local brands. Most of the Chinese e-commerce products purchased by local consumers on Amazon and eBay are low-priced products. He hopes that Umart can change this consumption habit of local people.

In addition to avoiding price competition, sellers must also meet the following conditions:

● Purchase products and ensure all products meet Australian compliance standards

●Manage product description/content and prices through the Umart platform

●Provide immediate replacement or refund for all faulty products

●Merchants should actively participate in platform promotion activities

●Umart charges sellers a 15% commission

Sellers who are interested in joining can click "Read original text" to apply to join Umart and share new opportunities in the Australian market.

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The world's largest e-commerce market