Australian eCommerce Outlook 2021
Australian eCommerce Outlook 2021
Despite the already-bullish eCommerce predictions in the Australian retail landscape, no one could have predicted last years’ black swan event. COVID-19 completely changed the dynamics of online shopping — pushing customers to leverage digital tools to secure critical needs like food, clothing, and entertainment. According to KMPG research, eCommerce in Australia experienced five years’ worth of growth in a mere six months. One million new households joined the digital shopping revolution last year, and many more are expected to explore the digital ocean of consumer goods in 2021. In fact, across all of Australia, 82% of households used eCommerce in 2020.
Of course, every country experienced an explosion in digital shopping. So, there’s a tangible sense of concern over the globalisation of eCommerce and its impact on Australia-centric companies. Will the rise of eCommerce shrink local purchasing and push consumers into the grasps of multi-billion-dollar digital Goliaths? Not likely. According to research, 92% of Australian consumers prefer Australian retailers, with 33% admitting they will abandon a purchase altogether if they can only use USD. Furthermore, shipping and logistics concerns (many overseas suppliers’ shipments were delayed for weeks) also turn customers towards local options. Regional and metro eCommerce shopping was up 50% and 60% respectively last year.
Despite lockdown measures, 42% of local retailers admit their revenue increased significantly due to COVID-19 — mainly through eCommerce channels. In other words, eCommerce is booming. And it’s likely to stay this way. A recent report suggested that over 33% of Australians plan to keep their current, digital-centric shopping habits in a post-pandemic environment. Once consumers taste the convenience of online shopping, many make digital their primary purchasing avenue.
Trends in Australian eCommerceThe avalanche of digital commerce won’t be distributed evenly. Companies that leverage the right strategies and methodologies will ride the wave; others will sink. In total, we’ve identified five key strategies that will define 2021’s eCommerce landscape.
Eighty-eight per cent of Australian’s want to purchase products from companies that emphasise sustainability and ethical practices. And 85 per cent want companies to be more transparent about their products’ sustainability and internal ethics practices. Now is the time to shed those layers of mystery and focus on transparency, ethics, and sustainability. It’s a buyers’ market. When consumers look for goods online, they have nearly unlimited options.
While over a third of Australian businesses describing their current financial situation as “good,” a significant number of companies are struggling to win over customers. If you’re a late digital bloomer, your competitors have a serious advantage. Their commerce store ranks and has recognition. You’re just starting your journey. Ethical practices can help spark growth in the near term, while your agency focuses on the long-term marketing strategy.
Sustainability isn’t only top-of-mind for Australian consumers. Fifty-seven per cent of consumers worldwide are willing to change their shopping habits for environmental reasons, and 81 per cent say sustainability is massively essential. In other words, both your local and global audience craves sustainability. Now is the perfect time for sustainability initiatives and eco-friendly habits.
Omnichannel Experiences (Click & Collect)
Social Media Marketing
Are You Ready to Win With eCommerce?
The truth is: digital shopping is here to stay. Savvy companies will capitalise on these trends and build impenetrable towers of long-term growth and resiliency, while others will drown in the ever-changing digital ocean. At Maxemus, we help retailers adapt to the modern digital environment, prepare for upcoming disruptions, and ease the new market pressures. Our team of hyper-experienced digital natives leverage world-class strategies and winning creatives to drive value and growth into your digital storefront.