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AUSTRALIA E-COMMERCE MARKET GUIDE

July 22, 2021
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Australia is a country full of potential for businesses due to a large online shopping audience and plenty of purchasing power. Our Australia e-commerce market guide will help you successfully understand and tackle this exciting market!

Overview of Australia

  • Australia is the sixth-largest country in the world. Its landmass consists of 7.7 million square kilometers. It consists of the mainland as well as Tasmania Island and other small islands.
  • There are 25,733,500 people and it’s the 52nd most populous country in the world.
  • The climate ranges from deserts and rainforests to snow-covered mountains. Summer months in Australia are December to February and winter is June through August.
  • Currently, 85.7% of the population lives in urban areas.
  • The main industries in Australia include financial and insurance services, construction, healthcare, mining, scientific services, technical services, and manufacturing.
  • The National Public Holidays include New Year’s Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day, and Boxing Day. Consider targeting those holidays with your designs and campaigns.
  • The culture of Australia is heavily influenced by Britain and is primarily a Western culture. There is also some cultural influence from the Aboriginal people.

Helpful Facts for Australian E-Commerce Businesses

  • E-commerce revenue in Australia is projected to reach $29,700 million USD in 2021 and the average revenue per user is projected to be $1,524.32.
  • The relatively high per capita income ($50,855 USD) means its citizens have a high purchasing power.
  • Green and gold are Australia’s official colors.
  • “Bushwear” and “surfwear” are popular fashions.
  • Cricket is the most popular summer sport and draws large crowds of fans every year. Other popular sports include rugby, swimming, surfing, and yacht racing.
  • Based on unique monthly visitors, Australia’s most popular social networks in 2020 are:
Graph showing top social media platforms in Australia: background gold, bars with a rounded top are dark green: Tumblr has 3.7 million users, Twitter 5.8, Snapchat 6.4, LinkedIn 6.5, WhatsApp 8, Instagram 9, YouTube 16, Facebook 16.5

Market Potential

The year 2020 was a big year for e-commerce in Australia. As people were forced indoors, online sales shot up by 80% in the first two weeks after WHO announced the pandemic. By the end of the year, overall online shopping for Australia was up 15%.

The main locations for top e-commerce sales are Victoria and New South Wales. Effective digital advertising focuses on large cities such as Sydney, Canberra, and Melbourne.

The Australian market is also keen on personalized products. Keep this in mind as you target major holidays such as Mother’s Day, Anzac Day, or Christmas.

According to Trade.gov, there are 5 countries that Australians tend to purchase from the most:

Graph showing Australia's top international sellers: background dark blue with light blue coral on the left side: on the right side text and shopping carts in white, text shows that China has 40% of the market, US 21%, UK 14%, Hong Kong 6%, New Zealand 3%

What to Know Before Jumping into the Australian Market

Here’s what you need to know to successfully join the Australian market. If you just jump in without research, you won’t see much success.

Your Customers

As you target new audiences and locations, it’s important to research the history and culture as well as customers so you can create designs they’ll find appealing.

A big example of this is language. The official language of Australia is English, however, they have a different way of writing and pronouncing certain words as opposed to American English or British English. Choose your words wisely and do some research if you’re uncertain while designing.

You can use a free program called Grammarly, that will help you with spelling. All you have to do is install it, then go to the language tab and you can pick and choose what you need. It’s an easy way to make sure your spelling is correct.

Screenshot of Grammarly tab showing different language options like American English, British English, and Australian English

Australians are extremely proud of their homeland and are very patriotic. They love their country’s colors, which are green and yellow. Many are also sports enthusiasts.

They are also big supporters of equal human rights, LGBTQ+ rights, and have a very open mindset in general.  

Australia is home to the Great Barrier Reef and the world’s oldest rainforest. Residents love their land and preserving nature is important to them.

Top Selling Products and Popular Niches

Due to a focus on environmentally friendly consumerism, reusable drinkware is incredibly popular. These products include:

  • Travel Tumblers
  • Mugs
  • Stainless Steel Wine Glasses

Other popular products are t-shirts, tank tops, and other apparel items. Create designs that include Australia’s flag or colors to give customers a way to celebrate their patriotism.

Other popular design elements and niches include:

  • Koala bears
  • Kangaroos
  • Cities
  • Sports such as cricket, soccer, and rugby
  • Wildlife
  • Local culture
  • BBQ and other popular cuisines

Payment and Currency

Before you start targeting the Australian market, it’s important to know and understand common and popular forms of payment and currency.

Payment– Popular online payment methods include Paypal, Visa, American Express, Mastercard, Afterpay, POLi Payments. Australia’s currency is the Australian dollar (AUD), make sure not to get it mixed with the American dollar.

Important Information for Running Ads in Australia

Facebook is still the largest social media platform in Australia with 16.5 million users. Other interesting stats include:

  • 79% of Australians are on social media
  • The average time spent on social media is 1h 44m
  • Video posts get 59% more engagement than other post types
  • 2 out of 3 Australians using FB are mothers
  • Peak hours are between 2 and 5 pm or after 8 pm

The cost for advertising can be a bit pricey with a CPM (Cost per Impression) as high as $10.22 and a $0.72 CPC (Cost per Click) with a CTR (Click Through Rate) of 1.41%.

Zoomed in photo of a koala bear

Product Descriptions and CTAs

Before you begin running ads on any social media platform, it is important to write out your product descriptions and calls-to-action (CTA). We have some inspiration for you below:

Stainless Steel Wine Glass Sample Product Description:

Enjoy your favorite {beverage} in style while going green. This 12 oz reusable stainless steel wine glass comes with a splash-resistant lid. It will keep your {beverage} hot or cold until the last drop! Shop our selection!

CTA Templates for Major Holidays

Anzac Day

Shop our featured Anzac Day collection!

Get {X}% off Anzac Day and Remembrance Day collections.

Australian Day

Check out our low-priced Aussie {product} designs! They won’t last long.

Celebrate Australian Day with {X} off all Aussie Apparel. Shop now!

Shop our wide selection of Aussie-inspired products. Get free shipping today only.

Boxing Day

Boxing Day just got better! Shop {product} and get {discount} today.

Don’t miss out! Get {discount} off {product} for a limited time only.

Staying Current in the Australian Market and Trends

Truly understanding the market means taking time to research and stay up-to-date on their local news and trends. Read local newspapers such as The Australian, Herald Sun, and The West Australian.