Just what the retail sector needs, some good news! The latest figures show unprecedented growth for e-commerce in 2017, fuelled by online sales events that consumers are embracing like never before.
Last year was a huge year for e-commerce growth, reveals new research released by Australia Post. The report reveals that Australians spent AUD$21.3 billion on physical goods in 2017. This is a 19.2 percent growth year on year. It’s almost double the 11.5 percent growth experienced in 2016.
A key category of growth is, unsurprisingly, fashion and clothing, which experienced its fourth year of double digit growth, up 27.2 percent (compared to 16.7 percent growth in 2016).
With May and November 2017 achieving some of the best month-on-month growth, Australia Post’s research also reveals that online shopping events are driving increased sales. The spike in e-commerce growth is directly correlated to Click Frenzy Mayhem, Click Frenzy, Singles’ Day, Black Friday, Cyber Monday and Boxing Day. The growth also reflects that consumers are becoming more comfortable with these events which play an important role in consumer buying behaviour. It wasn’t that long ago that the majority of Australian consumers hadn’t heard of the predominantly US Black Friday sales. Now, timed with the Click Frenzy event and embraced by Australian retailers, sales grew 16 percent month-on-month in 2016 and 18.7 percent in 2017 during this period. There was also stand-out growth in May during Click Frenzy, with 9.6 percent month-on-month growth in 2016 and a whopping 32.2 percent growth in 2017. Retailers are taking advantage of these patterns and shopping surges by ensuring they are part of their campaign calendars, which in turn creates excitement for savvy online shoppers.
The statistics are encouraging in an otherwise tumultuous retail environment. It shows that the demand is there, and when executed correctly, e-commerce will continue to flourish.
Disclosure: Click Frenzy is owned by Global Marketplace, the parent company of Power Retail.