Transactions surged by A$52.2 billion! Australia has become a hot spot for major platforms

E-commerce in Australia is growing rapidly

GlobalData pointed out that Australia's e-commerce market has been on a high growth curve in the past few years , and the outbreak of the epidemic has further boosted the growth of e-commerce sales in the country. It is expected that e-commerce in the region will grow at a compound annual growth rate (CAGR) of 10.3% between 2020 and 2024 .

According to GlobalData , e -commerce payments in Australia grew 13.9% to A$52.2 billion (US$36.7 billion) in 2020 as consumers stayed at home and used online channels to shop to avoid contact with others . According to the Australian Bureau of Statistics, online sales in Australia increased 55% by December 2020 compared with the same period last year .

This trend is likely to continue, with e-commerce sales in Australia expected to reach A$77.1 billion (US$54.2 billion) by 2024 .

Additionally, according to the Australia Post Online Shopping Report released in January 2021, by December 2020, more than 5.6 million Australian households had shopped online, an increase of 21.3% from the 2019 average .

GlobalData noted that as Australian consumers continue to embrace online shopping, the use of electronic payments will increase as consumers move away from cash, with payment cards being the preferred payment method for Australian consumer spending , accounting for 52.3% share , while other payment solutions accounted for 38.1%.

Buy now , pay later plans are also becoming increasingly popular in Australia, with millennial consumers particularly fond of this method.

More and more e-commerce companies have noticed Australia's untapped gem and have recently begun to expand into Australia.

Major e-commerce companies "divide" Australia

Amazon Business Services, the retail arm of Amazon Australia , has reported that its revenue in Australia has surpassed the $1 billion mark .

Of this, A$511 million was directly related to the sale of goods on Amazon's online store , more than double the A$218 million recorded in 2019.

Recently, Amazon has made a lot of moves in Australia. Recently, the platform announced that it has acquired Selz, an e-commerce platform based in Sydney, Australia , which can help small businesses create their own websites like Shopify.

Selz founder and CEO Martin Rushe said : “We have signed an agreement to be acquired by Amazon and look forward to working with them as we continue to build easy-to-use tools for entrepreneurs. At this time, there are no changes for our customers and we will keep them in touch when we have further updates.”

In addition to Amazon, other platforms are also eyeing Australia. Clothing retail company H&M opened an online store in Australia in October 2020. During the epidemic , consumers' preference for online channels has increased significantly, coupled with the surge in online retailers and customized payment solutions, which will further drive e-commerce growth in Australia.

Fast - growing secondhand marketplace Poshmark launched its Australian product earlier this week, a month after listing on the Nasdaq, marking its first expansion outside of North America .

Poshmark sells new and second-hand products in many categories, including fashion, beauty, pet accessories, and lifestyle and home goods. It went public in January and is now valued at $US5 billion ($6.4 billion) with 70 million users in the United States and Canada.

Australians can now access the platform via the web or the Poshmark app to buy and sell with local and international users. The company said in a statement that entering Australia is part of its international growth strategy .

“As the Poshmark community grows from strength to strength and vibrant, we’re excited to welcome Australians to join us in shaping the future of shopping,” said co-founder and CEO Manish Chandra.

Poshmark reportedly chose Australia as its next market because of the country’s established store culture, environmentally conscious consumers, and high e-commerce usage .

Therefore, sellers can pay more attention to the relevant news of the Australian market and make relevant arrangements to occupy a part of this potential market.

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E-commerce

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