Why Australia’s eCommerce market is growing rapidly?

AUSTRALIA ECOMMERCE

Australia’s eCommerce market is growing rapidly.

Australia is the eleventh largest ecommerce market in the world, and revenue is predicted to reach USD25.7 billion in 2020 and USD32.3 billion by 2024. This represents a year on year increase of 15.5 percent. In comparison, the bricks and mortar retail market grew by 3.4% over the same period to reach USD200 billion.

Online commerce represents approximately nine percent of all retail trade in the Australian market. The largest Australian eCommerce platforms/sites are eBay (AU) (69 million monthly visits), Amazon (AU) (22.5 million), Woolworths (20.4 million), JB Hi-Fi ((13.3 million), Big W (11.9 million), Coles (10.7 million), Kogan (10.2 million), Officeworks (9.45 million), Chemist Warehouse (9.1 million), and Catch (8.95 million).

Domestic eCommerce (B2C)
Analysis by research group Statista reports that by 2020 89 percent of ecommerce purchases in Australia will be domestic. This market has grown over 11% over the last year. Over 40% of all B2C transactions take place on eCommerce platforms such as eBay, Amazon, and Gumtree. The remainder of B2C eCommerce takes place at the individual company website. With over 13 million active Facebook users in Australia, social media is also a big driver in the promotion of B2C transactions. Retailers are driving sales through a mix of shop and online promotions or “multi-channel”. The finance industry is a major driver with the large four Australian banks providing a range of cutting-edge tools for accessing accounts, and paying bills and making mobile transactions. B2B sales are somewhat more fragmented with less reliance on eCommerce platforms for trading.

Cross-Border eCommerce:
Only 21% of Australians purchased products in 2018 from international sellers. Australia Post reports that 40 percent of Australian shoppers most recent purchases were from China. The United States has declined in share over the past two years and now amounts for 21 percent of overseas purchases, followed by United Kingdom (14 percent), Hong Kong (6 percent), and New Zealand (3 percent. These purchases are generally made due to increased product offerings from overseas suppliers and cheaper prices.  A Goods and Services Tax (GST) is charged at a rate of 10 percent of the landed value of these goods originating from overseas.

Online Payment
According to Australia Post research, 48.8 percent of all online payments are made via PayPal. Credit and debit cards account 39.9 percent of online payments. The fastest growing segment is the buy now pay later market which accounts for 6.7 percent of online transactions. The most well-known provider in this segment is AfterPay.

Mobile eCommerce
Mobile eCommerce represents a significant opportunity in the local market. With mobile penetration at close to 100%, mobile payments and purchasing is a major strategy for all retailers. According to a recent report by PayPal, 26.4 percent of all ecommerce transactions occur via mobile phone, representing a 28.8 percent year-on-year increase, and dwarfing transactions made over laptop and desktop, which have been shrinking over the last couple of years.

Field survey:

 

 

 

 

From the above survey, it can be easily seen that there are a lot of e-commerce platform and all platform provides different types of services for example, food, groceries from Indian stores, Woolworths, Coles, etc., meat, dairy products, clothes, supplements and others products. It can also be concluded with the survey that a new platform is required to be introduced for people on which all the products including food, health and beauty, clothes, dairy and other shall be available on it and people have easy access to it. The platform shall be compatible with mobile as most of the people uses mobile phone. Moreover, another major factor which plays an important role is time of delivery. People mostly preferred to receive their consignment in the morning rather than receiving them during day time or in the evening.

To address the outcomes of field survey, there are many ways for it. Most popular and useful tool in the current scenario is Strategyzer. To know the application of strategyzer in a new venture, it is important to know about the tool itself and how it is beneficial for a new project/business.

What is Strategyzer?

Strategyzer is an innovation management software tool that helps you easily sketch out a business model by using their Business Model Canvas and Value Proposition Canvas. You can collaborate with your team, brainstorm and evaluate the ideas. Also, it’s useful for deciding which ideas you should keep and which ones should be discarded.

This software created by Alexander Osterwalder is definitely one of the most popular business modeling tools. But, every product has its good sides and drawbacks. That’s why we’ll go over its pros & cons, and offer Strategyzer alternatives that you might find more suitable for your needs.

What are the pros of using Strategyzer?

  • Simple to use
  • Collaboration feature
  • Testing Dashboard
  • Built-in help
  • Export to .pptx format
  • Unlimited users and canvases

What are the pros of using Strategyzer?

  • Created for consultants and users with a business background. Strategyzer could be confusing to individuals with little or no business background.
  • It’s lacking business planning features. If you plan on developing your idea further, you’d have to move your work to another tool.
  • Hefty price – $300 per year. A bit pricey.  
  • No free trial, only 30-day money-back guarantee.

How a strategyzer is useful for an ecommerce venture:

  1. Provides a clear view of aim to focus.
  2. Provides clear view of area of pain.
  3. Provides area of gain.
  4. Helps in identifying the major product services.
  5. Helps in Identifying the way by which people can be benefited.
  6. Helps in providing good customer services.
  7. Helps in planning strategies for the venture.

The example of anstrategyer which is beneficial for a new ecommerce venture

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