Australia E-commerce Market Size

Australia E-commerce Market Analysis

The Australia E-commerce market is expected to register a CAGR of 13.7% during the period 2022-2027. The Australia E-commerce market is primarily driven by the strong internet penetration, shoppers' confidence, and comfort with buying online in the country.

• Australia is closer to where many of the global E-commerce leaders were pre-pandemic but still lags in purchase frequency. However, in the past few years, online spending and high-frequency buying have gained momentum in the region, which is expected to drive the market in the coming years.
• Moreover, consumer behavior and confidence in online purchasing are further driving the market in the region. E-commerce players in the region need to know every detail of their products and provide thorough information, supported by images, video, or virtual reality, to attract consumers. A variety of payment options, competitive shipping, and a range of delivery choices also provide customers with the flexibility they're seeking.
• According to Australia Post, 48.8% of all online payments are made via PayPal. Debit and credit cards account for 39.9% of online payments. The fastest-growing segment is the buy now pay later market, accounting for 6.7% of online transactions. The most well-known provider in this segment is AfterPay.
• Mobile commerce represents a major opportunity in the Australia E-commerce market. With mobile penetration close to 100%, mobile payments and purchasing are effective strategies for all E-commerce players. As per a recent report by PayPal, 26.4% of all E-commerce transactions occur via mobile phone, representing a 28.8% year-on-year increase and dwarfing transactions made over laptops and desktops, which have been shrinking over the last couple of years.
• E-commerce market players need to face the challenge of embedding sustainable practices that span the entire supply chain from product development right through to recycling options at the product's end of life. Many retailers are taking innovative approaches to this, including Designerex, a peer-to-peer designer clothing rental service, which is working to reduce the impact of fast fashion and facilitate a circular economy.
• The COVID-19 pandemic has brought a permanent shift in consumer buying behavior from in-store to online shopping, which has accelerated the E-commerce market in the region. The convenience brought by E-Commerce through home deliveries is expected to gain popularity, reach broader audiences, and increase sales for retailers in the years to come.