Australia represents the world’s 11th-largest e-commerce market, offering significant growth potential for international sellers. While sharing similarities with other English-speaking markets, Australia’s unique geography and consumer preferences require specific strategic approaches.
If you are entering the Australian market as a foreigner, you need to equip yourself with knowledge of consumer preferences and fulfillment logistics. Read the following list of must-know factors about the consumers, marketplace, and logistics environment, and get going on your Australian expansion journey!
Aussie-preferred E-commerce Platforms & Payment Methods
To capture more sales in the Australian market, it’s a smart idea to list your products on the trading platforms that Aussies use to shop!
As of last year, Amazon’s sales accounted for 10 percent of total e-commerce sales in Australia. Nevertheless, Amazon is not the only platform that Australian shoppers flock to.
Some of the most popular e-commerce marketplaces in the nation include:
- Amazon Australia
- Gumtree
- Catch.com.au
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When it comes to online payments, the bar is set high with Australian shoppers. Credit and debit cards are still a popular method of payment, making up around 75% of online purchase payments last year, but various other options have become popular, including:
- Digital wallets like Apple & Google pay
- Klarna and Afterpay for Buy Now Pay Later
- POLi payments (bank transfer used with many Australian banks)
Country Logistics Info in Australia
The large size and dispersed population in Australia have historically made logistics and fulfillment in the country a challenge. Things have improved in recent years, but there are still some country-specific points you will want to know.
Expect Longer Lead Times
Like anywhere, shipping times differ based on the carrier, distance, and weight. For instance, Australia Post (Auspost) standard shipping can ship a package in 1-2 days in the same state, but cross-country might take as long as 11 business days.
Other carrier options for domestic shipping are:
- Sendle
- Aramex (Previously known as Fastway)
- CouriersPlease (a subsidiary of Singapore Post)
- Parcel point (also does pickup and return locations)
It’s important that you don’t make promises you can’t keep to your Australian customers, so remember to adjust estimates and shipping options on your site accordingly.
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Choose Fulfillment Locations Strategically
You can choose to spread inventory between various locations to cut down shipping times or choose something located in the middle of most of your customer base.
Typically, the following areas are the chosen spots for fulfillment centers:
- Sydney
- Melbourne
- Brisbane
- Perth
This article is originally published by CBIP Logistics:
CBIP Logistics provides full-scope logistics services for DTC businesses, including freight logistics, order fulfillment, and logistics consulting. As a fourth-party logistics provider, we work with an extensive partner network of warehouses, fulfillment centers, and other logistics providers around the world to design optimized logistics operations for all of our DTC clients. Learn more about our company and services at cbiplogistics.com.