Many reports have shown that Australian e-commerce continues to grow, entering a period of unrivaled global dominance. There is simply no (zero) probability that e-commerce will cease to exist in 2023.But is Australia ECommerce worth it in 2023? Everything you need to know to make an informed decision is provided below.
The pandemic sparked an e-commerce boom in Australia, just as it did everywhere. In just a few months of lockdown, Australian e-commerce soared to levels not seen until 2023, accounting for 16.3% of total retail sales in 2020.
From 2019/20 to 2020/21, Amazon Australia's sales climbed by 87%, while Catch and Kogan's sales increased by 43% and 42%, respectively. There were also significant gains for Australian platforms, with Woolworths, the king of local e-commerce,...
But as we cross the 2022 halfway mark, with a global recession looming and inflation biting, do those forecasts still hold up?
Every explosion has an aftershock, and the global e-commerce boom is no exception. After years of reduction, internet costs are rising everywhere as supply chain difficulties and inflation raise e-commerce pricing. In March 2022, prices rose by a record 3.6% year on year (YoY). However, by May, levels had stabilized at a still concerning 2%.
However, it does not appear that this is having an immediate impact on the number of Australians purchasing online. In 2022, an average of 5.4 million households purchased something online each month, the same monthly participation as in 2021.
The Australian eCommerce landscape has been more saturated in the last year as marketing has become more difficult - both due to the increased number of competitors and changes in targeting capabilities with platforms such as Facebook. Despite the danger of a slump, estimates for Australian e-commerce remain optimistic - if somewhat contradictory.
Australia has the world's 11th largest e-commerce market, with revenue expected to reach $32.3 billion by 2023. The eCommerce sector is evolving as more Australians incorporate online buying into their daily lives.
To differentiate their offers, eCommerce businesses will gladly embrace innovation and improvements in areas such as customer experience and logistics.
It is time to answer the question“Is Australia eCommerce worth it in 2023?”. Yes, it is.Australian eCommerce retailers have a bright future ahead. So do not hesitate to jump into this market
Despite all the challenges that you might have to encounter when entering the Australian eCommerce market, online selling is still profitable if you know how to make use of it. Here are a few tips for you to prepare for your future.
Pricing plays an important role in the growth of your eCommerce store. Since inflation increased in the Australian market, customers have started to think about buying products and only buying when they really need them. Adjusting the price will help the seller set the right price for the customer and still make a profit.
Some methods to reduce costs are using smart marketing, taking advantage of free traffic platforms to reduce advertising costs, etc.
Understanding your customers and what motivates them to buy from you is essential for any successful retail business, especially in the online age.
Due to the lack of physical touch with your products and services, other components of the relationship play a larger role when purchasing. Customers want to be able to interact with social media platforms on a mobile device or make a purchase through an online store on a desktop and have a consistent, seamless experience.
As digital technologies such as augmented reality improve customers' real-time purchasing experiences, it's critical to stay current on the value-adds that your market responds to. Examine your budgetary alternatives and concentrate on technologies that improve the client experience or eliminate time-consuming manual tasks performed by your team.
If you are not able to build your own website, take advantage of Amazon, eBay, or non-code experience sites such as Shopify or Wix to build your own.
An interesting fact you may want to know, eBay has the largest eCommerce presence in Australia. It has 69 million monthly visits in Australia, which is more than triple Amazon’s monthly visits there (22.5 million). Woolworths has 20.4 million monthly visitors, according to the U.S. Department of Commerce International Trade Administration.
Sellers on the global e-commerce platform can hardly ignore Shopify - one of the first e-commerce platforms in the UK, US, and Canada. Thanks to its convenience and popularity, Shopify has become familiar even to customers in Australia. This is the best option for the seller with multi-feature to date on a background platform.
With Shopify, sellers can easily create their own websites with full features for selling, hosting, payment processing, and online store customization. In addition, Shopify allows merchants to upgrade their stores with many advanced utilities.
Shopify owns an application POS (Point Of Sales), an omnichannel sales strategy, allowing it to work with Amazon, and eBay with many inventory and order management tools. When using Shopify to sell, merchants get features like
The cost of using a store on Shopify is divided into 3 levels including Basic Shopify, Shopify, and Advanced Shopify. Extended features will be customized for each individual price. The basic Shopify package is US$29/month, Shopify for growing businesses is US$79/month, and the most advanced Advanced Shopify plan costs US$299/month.
Square Online is a sales platform specifically for small and medium business owners. It allows building a store for free, with a synchronous approach to the POS systems that the seller is using.
Square integrates well between e-commerce features such as product selection, free store templates, and website search and integrates them with social networking platforms such as Instagram, Facebook, and Messenger, ...
The advantages of Square Online are:
The plus point of Square Online is that the usage cost is not too high, sellers can use the free plan with a transaction fee of 2.2%. The Professional package costs A$20/mo, the Performance package costs A$35/mo, and the Premium package costs A$95/mo.
The features that Wix brings to sellers go far beyond the price range it asks for. The top price sellers need to pay is $58 AUD with full website building features, customer support, unlimited website videos, and 50GB of website storage.
Wix subscriptions all have a similar amount of e-commerce features with options. Sellers can integrate external applications or add Wix's own applications, however, this can increase the monthly cost as each add-on has its own subscription cost.
The advantages of Wix are
Overall, Wix is convenient and easy to adjust and use for those who are just starting to build their own websites. If you want to build an e-commerce store in Australia, you can start with the Business basic plan with features that allow easy access to online payments and better visitor management.
Squarespace is an all-in-one platform that integrates hosting, an online website builder, and a simple design. To build your store, you should use the Business plan or the Commerce plan. Squarespace is used by many business owners, however, this platform still has some disadvantages such as limited integration of third parties such as shipping, payment, and contact tools town,...
In addition to these disadvantages, SquareSpace has many pluses to support e-commerce sellers, including features such as
Squarespace is not the best platform with a wide range of e-commerce features, but for Print On Demand sellers who have few products or specialize in products, this will be the most suitable choice. The themes available on Squarespace are often minimalistic, focusing on images, so it will be suitable for stores that sell few items with image synchronization.
WooCommerce is a familiar platform for sellers globally, websites built on WooCommerce are often diverse with many features thanks to thousands of handy plug-ins.
When using WooCommerce, businesses can add products and orders with an unlimited number of users. Woo also allows sellers to sell digital products in addition to physical products,...
Plug In WooCommerce is completely free, but to use the sales support features, you will need to pay additional fees depending on the plug-in. The total cost you pay for WooCommerce can range from $20 to $1500 per store.
Generally speaking, selling on the Australia market can give you higher profit margins than ever if you know how to choose the right product and marketing strategy. Now you know Australia's ECommerce is still worth it in 2023! Be ready to start your business in this potential market!
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Being one of the leading Print on Demand Fulfillment Platforms in the eCommerce industry, Printway is proudly offering POD fulfillment services globally with more than 500+ products & more than 1000+ SKUs.
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