With 80% of internet users shopping online in 2016, Australia’s ecommerce market is experiencing steady growth and the country now ranks 2nd in the UN’s E-Government Index.
92% of the Australian population are internet users, which is supported by Australia rating 11th overall in internet inclusivity.
Facebook is the most popular social media platform, with 74% of total users. While social media has a significant influence on e-commerce, resulting in more online purchases every year, the report highlights consumers’ preference for retail and shopping apps over mobile websites; almost half of online consumers use apps for convenience, and 61% find the experience more enjoyable than buying via a website.
While Department & Variety Stores is Australia’s most popular category, the fastest growing categories are Media and Fashion, having grown 23% and 17% respectively.
There are some items that consumers still prefer to purchase in-store, for example large home appliances and TV/video players.
Delivery costs significantly influence online purchasing and are the greatest barrier with 50% of consumers identifying cost as an issue and 92% citing free delivery as a reason to purchase online. Consumers’ decisions to purchase online are also affected by 49% preferring to see the product in person and 56% going online to save money.
Going ahead, there is great potential for enterprises to make more product information available online so consumers can perform research. With delivery costs a significant factor affecting online purchasing, however, it may be a priority for retailers to consider how to decrease delivery costs for consumers.
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