More Australians are shopping online than ever before, meaning it’s the ideal time for Asian retail businesses to grasp this opportunity to grow. Eight in 10 Australian households shopped online in 2023. This equates to over 9.5 million Australian households (+1.4 percent year-on-year) receiving a parcel last year.
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What’s more, 28 percent of Australians purchased products from international sellers, a figure that’s likely to have risen considerably since.
Home and garden products, along with fashion, beauty, and recreational hobby goods, thrive in this region, celebrated for its sunny climate and vibrant outdoor lifestyle.
It’s true that Australia and Asia are in the same APAC region, but cultures, shopping behaviours, and values vary.
For Asian retailers aiming to secure a strong presence in the lucrative Australian market, it’s vital to gain a deep understanding of what Australians truly love – and what they decidedly dislike – when it comes to online shopping.
Australians are increasingly affluent
It’s a market worth cracking. Australia’s population is growing ahead of global averages at 1.4 percent a year. It’s a country looking outward for interesting products and unique brands.
Half of Australians are first- or second-generation migrants and their shopping habits reflect the cultural mix, with millions of Australians buying from international e-tailers.
Australian consumers’ trust in online shopping, which makes the country a particularly appealing e-commerce market, relatively easy to launch into.
Asendia’s latest Markets to Watch report notes that the key reason Aussies buy online is ‘for the best price’, with 46 percent stating this, ahead of ‘saving time’ (39 percent). Bank cards are used by 79 percent of the population and just over half (52 percent) of Australian shoppers check reviews before making a purchase.
The biggest e-tailers Australians use include Amazon, eBay, Woolworths, AliExpress and Rakuten.
Australia has a healthy economy in 2024, compared to other ‘western’ countries, with per capita income having risen 20 percent since 2019.
However, this year it’s clear that Australian shoppers are seeking out bargains – as the cost-of-living crisis continues to put pressure on household budgets. Stats confirm that the uptake of ‘Buy Now, Pay Later’ (BNPL) is higher than anywhere else in the world, and there’s wide adoption of PayPal.
Interest in sustainability
Australia’s biggest e-commerce differentiator is its attitude to the environment.
Asendia research found that 75 percent of shoppers believe retailers should be ecologically sustainable, with a similar percentage valuing biodegradable and eco-friendly packaging, more than next-day delivery or same-day collection.
For these shoppers, large amounts of polystyrene void fill, and overly large boxes are a no-no. It will pay to offer the opportunity to receive parcels slightly slower, making it clear this is a more sustainable option.
Green commerce and re-commerce are becoming more important as Gen Z users move to the forefront of the Australian e-commerce market. Asian brands with strong sustainability and green credentials are likely to impress Aussie shoppers and win long-term loyalty – so long as their claims are genuine.
Delivery expectations
Our report notes that 60 percent of Australian online shoppers expect free delivery and seasonal discounts. And it’s interesting that 35 percent of shoppers use coupons and discounts when purchasing online.
For Asian brands looking to build a strong following here, it might be wise to introduce a spend threshold to qualify for free shipping, and to make clear that delivery can only be free if slower delivery is accepted – four to five working days, rather than delivery in two days, for example.
Logistics matters
Asian brands should choose fulfilment and delivery partners with care. Cross-border e-commerce specialists have mature logistics infrastructures to support business growth and seasonal sales fluctuations.
Brands venturing into this promising market will need help with customs, VAT paperwork, and technology support to ensure visibility of parcels in transit. Returns management is also crucial for expanding into Australia, and 3PLs can greatly assist.
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By championing sustainability, offering reliable, low-cost delivery, and leveraging major seasonal sales events, Asian brands can find great success in the land down under.
This piece is authored by Lou Milicevic, managing director for Asendia Australia and New Zealand, and a board member for Asendia APAC. Based in Melbourne, Australia, Milicevic has over 20 years of experience in logistics across Oceania, Asia, and the Middle East.