According to Australia Post’s annual Inside Online Shopping Report, Australian shoppers spent $21.3 billion online in 2017, with local retailers pocketing as much as 80 percent of that spend.
The latest figures from Australia Post reveal just how popular online shopping is, with spending across the e-commerce sector increasing 18.7 percent between 2016 and 17.
Over this period, fashion was the top-selling domestic category, with sales growing 27.2 percent over the year, coming in ahead of health and beauty products (13.2 percent) and homewares and appliances (10.9 percent).
While the Christmas period in November and December was the busiest time of year in terms of the volume of traffic e-tailers received, the months of May and June proved to be the most popular revenue-wise, with online purchases reportedly increasing by 32.2 percent.
Ben Franzi, Australia Post’s general manager for parcels & express services believes the busy May/June period could be attributed to the number of extended end of financial year sales that were offered.
According to Franzi, the widespread adoption of online marketplaces is another example of how willing consumers are to jump online for all their shopping needs.
“Marketplaces – such as Amazon, eBay and Etsy – are booming, growing 74.8 percent in the past year alone,” Franzi said.
“Australians really appreciate the convenience of being able to access goods from a variety of sellers in the one location. In the past year, we have seen new marketplace entrants, which is always great to see, in recognising the increased customer traffic that this type of format offers.”
These marketplaces also offer increased international exposure, as Franzi claims platforms like Alibaba’s Tmall and JD.com help local retailers reach a lucrative overseas market. Considering global online revenue has already increased by as much as 46.7 percent in the last year ($A 2.09 trillion) and is expected to grow more in 2019, Franzi is confident retailers can benefit greatly from expanding out of the domestic market.
“Marketplaces make it easier for consumers in our key export markets – China, United States, and India – find Australian products and offer a more convenient way for local businesses to start selling overseas.
“By 2019, total online goods purchases from across the globe is set to reach $US2.16 trillion ($A2.86 trillion), so this market represents a huge opportunity for Australian retailers.”
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