With healthy growth across the board for online retail in 2017-18, this year has been the one where ecommerce has cemented its footing as the future of retail. But it hasn’t been without excitement.
It was the year Amazon launched into Australia and we had front row seats to the ensuing competitive plays put up by the likes of eBay, Catch and Kogan, resulting in the bar for retail being pushed to new highs through innovation and the improvement of both the merchant and consumer experience.
We experienced a healthy bout of nostalgia upon learning that the magical fantasy world of our childhoods, Toys R Us, was shutting forever. The imminent closure of Australian luxury handbag retailer, Oroton, was saved at the final hour by a takeover bid from a major shareholder, and 37 year old iconic footwear brand, Diana Ferrari, closed all of their 17 bricks and mortar stores (albeit to focus on their online channels).
It’s also been the year that a number of other bricks and mortar retailers, including Spanish fast fashion brand Zara, have launched online arms to boost falling in-store sales.
But amidst the tumult, ecommerce has emerged as the leader, forging ahead stronger than eve
The online shopping industry in Australia is now worth $23 billion and is growing at a much more rapid rate than traditional retail. In fact $1 in every $20 is now is now spent online, where there’s no need to battle traffic, car parks, and heaven forbid—other people. Instead, shoppers are choosing to purchase from the comfort of their own homes, or on the go, 24 hours a day.
Consumers are seeking convenience, low prices and personalised experiences all the way from first touch through to delivery and after-sales service. Consistency and high quality experiences are now expected regardless of channel or device, whether the interaction is via a website, online marketplace, social media, bricks and mortar store, phone, or email.
In fact, by 2020 it’s estimated that shoppers will value experience over price.
Retailers and wholesalers of all sizes are having to actively adapt to these changing consumer preferences and behaviours. But this year, it’s no longer about multi-channel, or even omni-channel retail; the onus is on unifying your commerce in order to gain a single view of the customer and a single view of the order.
With our merchants processing over $1 billion through the Neto platform in the past year alone, we looked at the transformation of ecommerce over 2017-18 to bring you data, insights and trends from thousands of merchants representing a range of verticals and business-sizes, as well as data from a selection of leading industry partners including eBay, Google, PayPal, Sendle, and SmartrMail.
Here's a sneak peak at a few of the highlights. Read on or download the full report for more.
A Snapshot of Ecommerce in Australia
30% growth in online sales
Australians are buying more online than ever before:
- 12% increase in average monthly sales
- 5% increase in basket size
- Pay Later transactions have grown by 122%
Fashion first as the fastest growing vertical
With Fashion the front-runner for growth in terms of total sales, here's the other top performing verticals:
- Highest growth in average monthly sales - Homewares
- Highest average basket value - Food & Alcohol
Marketplaces bring in 1/3 of total sales
Online marketplaces are fast becoming the platform of choice for retailers looking to find new customers, build brand awareness and expand into new markets. Here’s what you need to know:
- 1/3 of total sales come through marketplaces like eBay and Amazon
- 60% of purchases via marketplaces are on mobile
- 75% of consumers say free delivery is the most important factor when buying on marketplaces
More for mCommerce
It's more important than ever for your site to be mobile optimised, because that's how consumers are searching and buying.
- 72% of consumers buy via mobile
- 1 in 8 shop daily via mobile
- 42% will abandon a mobile purchase if it's too difficult or takes too long