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According to Forrester research jointly published in 2011 by PayPal Australia, Nielsen and the Australian Centre for Retail Studies, Australian online commerce was forecast to be worth $37.7 billion by the year 2013. The figure for 2011 was $30.2billion, up from $27billion in 2010.

And according to a more recent report from a leading US Digital Marketing Firm, eMarketer, Australia is the fourth largest eCommerce market in the Asia-Pacific region. The same report used research from the Australian Bureau of Statistics “Household Use of Information Technology Report” to back up its findings, which showed that 98% of the Australian population has access to the Internet, and 68% of internet users purchased something online in the past 12 months.

So what does all this mean for Australian businesses? It means they need to act now to keep up with Australian consumers, who are changing the way they shop and the way they spend their money.

A study by the Australian Communications and Media Authority showed that, of those who shop online, only 53% buy from Australian retailers, while 19% buy from overseas retailers and 29% buy from both overseas and AU retailers equally. When asked why they buy from overseas retailers, 56% said it was because the product they wanted was not available in Australia. The reality, however, is that it’s more likely the product is available from an Australian retailer, but their website is not optimised well, so they don’t show up in the search results when buyers are searching for their products. Thus they are losing out on sales to overseas retailers simply because they have not invested in SEO and Online Marketing services.

While all businesses should act now to boost their online rankings and website traffic to take advantage of the growing ecommerce market in Australia, some sectors are losing out more than others if they neglect investing in SEO.

The eMarketer report mentioned above also looked into the types of products Australians are buying online. Fashion retail came in at number one, with 50% of shoppers buying clothing and jewellery online. Entertainment and travel were also high up the list, outlined below:

• Clothing/Jewellery – 50%
• Music/DVDs/Books – 47%
• Electrical Items – 43%
• Travel – 37%
• Toys/Games – 28%
• Cosmetics and Beauty Products – 25%
• Food & Groceries – 17%
• Sporting Equipment – 14%
• Pharmaceuticals – 10%
• Furniture – 7%
• Other – 19%

Contact us at White Chalk Road today to find out how we can help you to take advantage of the booming Australian ecommerce market.

 

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