In recent years, Australia has emerged as a promising destination for eCommerce businesses looking to tap into a tech-savvy and digitally-connected consumer base. What’s more, the country's stable political environment, developed infrastructure, and high standard of living make it a great entry point for establishing a foothold in the Asia-Pacific region.
Australia's innovative payment landscape with a strong focus on contactless and mobile payments presents exciting opportunities for companies looking to stay ahead of the curve. Read on to find out all of the reasons why you should consider expanding your operations into this dynamic and forward-thinking market!
In 2022, the country's eCommerce market reached AUD 47 billion, marking an 8.9% growth compared to the previous year. Besides, with over 90% of internet users making online purchases, this figure is expected to increase further in the coming years.
What makes the Australian market even more attractive to companies seeking to expand their operations globally is the fact that 61% of its online shoppers have experience making cross-border purchases, which results in a total market value of AUD 4.2 billion.
However, to succeed in this market, merchants must optimize the payment solutions they offer to Australian consumers - read ahead to learn how this can be achieved.
In recent years, it has become more important than ever for businesses to select a payment platform that offers local acquiring for a seamless checkout experience. To do it, you must take your time to familiarize yourself with the local payment landscape before entering it.
In Australia, debit and credit card payments account for 50% of all eCommerce transactions, with digital wallets also gaining popularity and used in 33% of online payments. Thus, it is safe to say that these payment options are here to stay for years to come.
However, it is also crucial to not overlook other payment methods. For instance, Australia's New Payments Platform (NPP) has processed over 1 billion transactions worth more than AUD 1 trillion in the past year. It is a real-time payments infrastructure that allows individuals and businesses to make instant payments, 24/7.
Moreover, there has been a significant rise in the popularity of Buy Now, Pay Later (BNPL) services, with 30% of Australian adults being their active users.
As you now know, the Australian eCommerce market has plenty of opportunities to offer, yet entering it can be a complicated process for businesses due to the following aspects:
Note that while a strong regulatory framework can be a challenge for businesses entering the Australian market, it also provides a high level of consumer protection and trust. Thus, companies that comply with regulations and prioritize client privacy and data protection are sure to put this aspect to their benefit by achieving a positive reputation and lasting customer loyalty.
The Australian eCommerce market is expected to continue growing in the coming years at a CAGR of 13.7% between 2022-2027. This growth is likely to be driven by several key factors, namely:
Overall, it is clear to see that the Australian eCommerce market is expected to see continued innovation, particularly in areas such as payment processing, logistics, and customer experience.
Businesses that can stay ahead of these trends and adopt new technologies will be well-positioned for success both in the short and long term.
As you can see, the Australian market is an attractive destination for eCommerce players due to its stable political and economic environment, strategic location, high internet penetration rates, and tech-savvy consumers who are comfortable with online shopping.
While it is definitely a viable option to consider, remember that expanding an eCommerce business to any new area can be a significant investment of time and money, so it's important to put a lot of analysis into this step. Therefore, make sure you carefully assess your business's goals, resources, competition, and target audience before finalizing your decision to enter the Australian market.
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