Australia has made the jump from the 10th largest eCommerce market to the 7th in the world. The latest eCommerce insights show that this contributes towards the worldwide growth rate by a staggering 26% (2020). With eCommerce tapped as a key economic growth driver, the internet has broken down barriers of previous confines reserved for bigger players that bear larger resources to expand. Given its location as well, Australia is logistically primed to service the APAC region with more innovations and products as both regions ride the significant eCommerce expansion wave. Whilst potential and opportunities are clearly available, it is also important to note the current headspace of customers, how you’re able to meet them at the point where the value your products present, whether it meets their current needs, and the price point they are comfortable with, converge.
Here are a few things that outline the eCommerce growth potential and consumer perspectives for both Australia & APAC:
Key eCommerce insights for Australia & APAC
- The top five largest categories in E-commerce Australia are: Fashion (26% of total revenue in Australia) Food & Personal Care (26%), Toys, Hobby & DIY (19%) Electronics & Media (18%) and Furniture & Appliances (11%).
- Locad, a specialist eCommerce logistics and supply chain management integrator based in Singapore, has raised US$4.9 million in a funding round led by Sequoia Capital India’s Surge. It aims to provide a fully integrated solution that looks to resolve some of the common pain points within eCommerce, particularly the slow and often complex supply chain systems.
- Asia Pacific account for 75% of global retail growth and 64% of eCommerce sales.
- Search interest for things like “air fryer” rose by 190% in Singapore during lockdown compared to earlier in the year. Whereas Vietnam saw a 68% growth for “blender,” and queries for “coffee maker” grew by 33% in the Philippines.
- As much as online shopping is a thing, customers are watching their wallets — 55% of Singaporeans said they would wait for a promotion before buying their delayed purchase, and 40% said they are looking to trade down to a cheaper alternative.
- In Australia, 59% of 18 – 29 year olds say a savings account is more important now than before the pandemic. They also say an everyday savings account (53%), stocks or equity investments (46%), and comprehensive car insurance (36%) are more important to them now than they were prior to the pandemic.
- 50% of Aussies claim YouTube helps them decide which brand or product to buy.
- Over 50% of Aussies said that brands can be most helpful to them right now by setting realistic expectations regarding the availability of their products and services.
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