For last few years there has been a substantial increase in internet penetration and digital presence of people around the world and, subsequently, in Australia. And this trend of online lifestyle has deep-seated influence than just on the communication or orientation. The internet accessibility and online driven lifestyle has far-reaching impact on mass consumer buying behaviour, thus resulting in a digital consumption upsurge.
In a report published by WeAreSocialSG, the estimated number of global internet users and unique mobile users are respectively 3.419 billion and 3.790 by January, 2016. And with the rapid growth of Mobile Commerce, there has been a significant rise in e-commerce market participation in recent years. In year 2015 alone, there has been a sharp 25% growth of global e-commerce sales.
The e-commerce market accumulated a staggering amount of $1.672 trillion (apprx.) which accounted for 7.3% global retail sales of overwhelming $22.822 trillion. And things look all rosy in future as eMarketer Inc. predicts the e-commerce market to double by 2019 with online purchases of $3,551 trillion, which will make up 12.4% of total $28.550 trillion global retail sales. And this slender reflection just indicates how monolithic the eCommerce landscape is going to be.
Though the active participation and contribution of a varied mix of both developed and developing countries sums up to this burgeoning global eCommerce market,it is the Asia-Pacific countries cohort that leads the e-commerce market contribution with a growth rate of 35% and total online sales of $875 billion (appx.) in the year of 2015 only.With China, Japan, South Korea sitting on the pole positions of Asia-Pacific e-commerce year by year growth chart, it is Australia which is catching up faster by already leaving India and Indonesia behind.
In 2015, the Australian e-commerce market was projected to achieve a 9.3% growth with $19.02 billion online purchases and transaction. And the Australian growth looks immensely promising as for the years of 2016, 2017 and 2018 the e-commerce growth is forecasted to be an upward projectile; by 5.9%, 6.3% and 6.6% growth respectively.
In 2015, Australia ranked as the 10th best eCommerce market globally, a slight demotion from the previous year’s 9th position but substantial development in cumulative figures and growth percentage of a $10 Billion-plus eCommerce market totally eclipsed the fact, nonetheless.
The convenience and greater value offered by the eCommerce industry has attracted more and more consumers online and rise of mobile technology and accessibility has only expedite the estimated 22% growth of the eCommerce last year.
This online revolution has shaped the Australian consumers’ shopping and purchasing in a total different modern mold which saw eCommerce sites to gain up drastically in popularity. This is mostly due to the fact that Australia boasts the second highest digital buyer penetration in Asia-Pacific region as 79.4% of the total internet users prefer to make online purchases from digital channels like eCommerce sites.
This explains the reason why Australia’s eCommerce landscape is so attractive to and consequently crowded by the international eCommerce outlets. The following table reflects on the active market presence and fierce competition of Australian eCommerce market, as the top 10 most successful and popular eCommerce websites along with their relevant market credentials :
The given table compare the highest level of search engine traffic achieved and highest amount of dollar would have had to be spent for Search Engine Traffic price and ads traffic price by eCommerce sites of Australia to achieve such traffic in the time span of last month.
It is clearly visible that eCommerce websites managed a much higher organic search engine traffic which otherwise would have necessitated a proportionately exorbitant Search Engine Traffic price and ads traffic price. This is a clear indication of the already immense and continuously increasing popularity of eCommerce sites in Australian community.
From the table given, it is evident that Gumtree, UK’s biggest classified site, has garnered same status in Australia also as it has secured heavy and most traction in Australia. But it is the Apple Australia, despite its 2nd position in the list, which has revenued the highest amount of Search Engine traffic price of $9,139,199 in last month.
While both of the eCommerce sites have secured massive Search Engine Traffic, the table shows that Apple Australia has sizably edged Gumtree Australia’s Search Engine Traffic Price equivalent of $5,574,825.
Being the biggest consumer electronics retailer, JB HI-FI clawed up to a best ever 4th position with an organic search engine traffic of 3286606, which amounts up to $2,081,746 of Search Engine Traffic Price, and that is mostly due to their considerate spending and its diverse products and services offering like video games, DVDs, online music streaming service etc.
Online auction website eBay by tradition – ruled the year of 2014 in Australian ecommerce as eBay Australia topped the list of year 2014 registering highest number of visitors, roughly 23.1 million. But due to the competitive development of the ecommerce sector, eBay and eBay Australia now sits at 6th and 10th positions respectively, with a last month’s search engine traffic of 1393862 and 109923. The stronghold of eBay outlets in market even after fiercer competition would have required Search Engine Traffic Price expense of $3,772,157 and $679,804 respectively had there not been such spike in organic search engine traffic.
The same organic search engine traffic pattern and consequent gain in terms of Search Engine or Ads traffic price can be observed for rest of the eCommerce sites of the table.
Amazon, who previously sold only ebooks, in its Australian Version (Amazon.com.au), identified the massive opportunity Australian ecommerce sector poses , jumped on board by diversifying and expanding product range into video games, toys, movies, jewelry, music , furniture etc. and ended up achieving organic search engine traffic equivalent to $128,987 in search engine traffic price. This hefty figure or an ads traffic price of $8,583 would have been required last month to gain their last month’s organic search engine traffic of 557322.
The Asian ecommerce moghul AliExpress is just trailing behind Amazon’s tail and closing the gap more rapidly as in last month they successfully secured organic search engine traffic worth of $63,552 search engine traffic price, which is corresponding to $4,653 in ads traffic price. The collective search engine traffic of the site is 318626.
Australian version of Target has also made pretty much advancement in service and garnered popularity to attain 5th pole position with an organic search engine traffic of 2016428 and saved them a proportionately larger search engine traffic price outlay, but it is the deal based community site of Australia,Oz Bargain, which has caught everyone’s eyes in recent years. The eCommerce site soared in popularity by offering best deals, freebies, vouchers and special promotion news and in just last one month of time has earned 249033 of search engine traffic which helped them secure $251,687 worth search engine traffic price and thus securing 9th position of the list.
To pinpoint the definitive reasons behind so much potential and success of eCommerce in Australia, despite the smallest digital buyer population in Asia-Pacific region – a mere 12.1 million, we have to reflect upon the audience profile and consumer behavior patterns of Australia. Australians has a potential tech-savvy consumer base who are avid online shoppers. They are so into internet that in 2013 Nielsen reported that a whopping 82% of Australians came online at least once a day. And the weekly digital media engagement was also an incredible average of 23.3 online hours per week.
Growth in mobile commerce, high internet penetration and exceedingly efficient logistics infrastructures has only added up to the prosperity and popularity of eCommerce here. A study conducted by Pitney Bowes has underlined the factors of wider online product assortments and feasibility of cross border trade have also served as attractions to Australian consumers and helped the eCommerce grow to the massive market it is today. The study has additionally predicted that the vast opportunity demonstrated by Australian eCommerce industry has made it an exciting market for international eCommerce players to enter in near future.
Similarly, as the online spending of Australian community continues to rise, the ever-developing eCommerce market of Australia holds equal potential for local small and medium businesses to capitalize and cash on. And exactly to achieve that they has to be in alignment to the ever-changing trends of the evolving market. The year 2016 brings trends like content marketing, social media presence, video marketing and digital branding as market defining. Small and medium businesses have to adapt and adopt innovative digital strategies to acquire bigger customer base and ensure its continuous growth.
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