Currently, as far as the cross-border e-commerce industry is concerned, the European and American markets are highly competitive and increasingly saturated, which is not conducive to the entry of new and small sellers. The Southeast Asian market has many countries, many religious taboos, and regional differences. Sellers face considerable challenges. Although the Australian market in Oceania has a small population of only 25 million, its per capita income is high and it is the second richest country in the world after Switzerland. In addition, Australia is a highly developed country and has higher consumption possibilities. Australia There are still great business opportunities in the market.
So, will cross-border e-commerce be easy to do in the Australian market in 2020? Let us first analyze the Australian market situation.
1) Basic overview of Australia
Australia is an English-speaking country and ranks first in the world in terms of exports of various minerals. It is known as "the country sitting on the mine car" . In terms of land area, Australia is almost as big as the United States, with extremely high urbanization rate (90), network coverage rate (88) and online shopping penetration rate (81). Australia is located in the Southern Hemisphere, and its stockings are more diversified due to opposite market seasons from China, the United States, and Europe.
2) Australia’s e-commerce development advantages
1. Australia’s Internet and smartphone penetration rate ranks third in the world. Australians spend an average of 10 hours a day on the Internet, and about 90% Australians are all Internet users and have a strong foundation for online shopping.
2. There is a huge demand for online shopping. Nearly 68% of Australian consumers often shop on Amazon, and about 63% of Australian consumers express their acceptance of cross-border consumption. According to the Australia Post, 10% of the products purchased by Australians in 2020 will be purchased online, and the online shopping market has huge potential.
3. The age distribution of Australian Internet users is very even. From teenagers aged 17 and 8 to elderly groups aged 6 and 70, they are all accustomed to online shopping. This also means that in Australia, Products of different age groups have good sales prospects.
4. In Australia, comprehensive e-commerce platforms and fashion categories account for 62% of the online shopping market. According to reports, by 2023, Australia’s e-commerce market revenue will reach US$26.905 billion.
3) Australian e-commerce platform
International trade is the key to the Australian economy, which is why there are so many e-commerce platforms in Australia. According to the data collected, eBay is more popular in Australia, with traffic three times more than Amazon. We can take a look at the specific e-commerce platforms:
1. eBay Australia Site
eBay in the United States was founded in 1995 and has expanded to more than 20 countries/regions around the world, including Australia. eBay Australia site mainly sells electronic products, fashion products, automotive products, sporting goods and toys , household, business supplies and other products.
2. Amazon Australia Station
Amazon was established in the United States in 1994. It was originally a bookstore. It later involved all aspects of media, clothing, food, and electronic products. Now Amazon’s business is expanding. To all over the world, it is also a very popular cross-border e-commerce platform in Australia.
3. JB Hi-Fi
JB Hi-Fi was founded in 1974. It is a physical retail store selling electronic products and entertainment consumer goods. The products sold also include movies, music and software. , household appliances, etc.
4. Big W
Big W is an Australian discount department store chain. It has its own online business and has corresponding products for different groups such as men and women, children and babies, such as Clothing, baby products, toys, men's and women's clothing and more.
5. Officeworks
Officeworks is an office supplies chain store that provides a series of office products and supplies such as computers, printing, copying, furniture, stationery, etc., and has its own online sales website.
6. Coles
Founded in 1914, Coles is Australia's supermarket chain giant and operates more than 800 supermarkets in Australia. Coles has also launched its own online supermarket, selling groceries, consumer goods and household items to online customers in Australia.
7. Woolworths
Woolworths is one of Australia's largest retail companies and has its own online website. Through this website, Woolworths sells groceries, beauty care, and household products across Australia. .
8. catch
Catch is a pioneer in Australia’s FMCG e-commerce website. It is famous for providing consumers with daily great deals. It was acquired in 2019 and has now become Part of the Westfarmers group, it helps the group's other brands Target and Kmart.
9. Shopbot
Founded in 2004, Shopbot is a well-known price comparison website in Australia. It provides customers with electronic products, beauty and health products, toys and furniture and other products, and can display the name of the product. , prices, sales store names, etc., compare the prices of various products, and provide links to help customers directly enter the corresponding website to purchase.
1. Australia is an emerging market. There are not many Chinese cross-border sellers settled in the market. The competitiveness is far less fierce than that of the European and American markets. There is still room for development and great potential.
2. Australia is located in the southern hemisphere, and its seasons are opposite to those in China. Sellers can use low-priced products to sell in Australia in different seasons in exchange for higher sales profits.
3. Starting from January 1, 2019, Chinese goods entering Australia will be exempt from tariffs. Cross-border sellers’ product transportation costs will become lower, and at the same time, their profits will be more generous.
4. Australia’s traditional trade is highly dependent on China. Among Australia’s major import partners, China ranks first, and China is also Australia’s largest creditor. China’s position in Australia’s foreign trade increasingly important. Australia has a high degree of recognition of Chinese products, which makes it convenient for sellers to sell.
As we have mentioned before, Australia is the second richest country in the world after Switzerland, and its per capita income is also very high. Therefore, Australians’ consumption is mostly towards enjoyment and they like to pursue pleasant feelings. However, Australia has a small population and a large land area, so it needs more product types. Sellers can refer to the following types when selecting products:
1. Fashion and fashion categories
Data shows that 40% of Australian buyers believe that fashion (such as clothing, swimwear, shoes, accessories, etc.) is the product they often buy online, and the growth trend of this type of product is also the most stable. Furthermore, Chinese sellers can make full use of the opposite seasons between Australia and our country, buy low-priced products and sell them to Australia to earn high profits.
2. Toys
22% of Australian consumers said they would often buy toy products, such as fidget spinners, Rubik's cubes and other products that were once popular. The profits of toy products It is still very impressive, but it is recommended that sellers still pay attention to the invention patent issues of toy products and be cautious when selling such products.
3. Home security monitoring products
Australia is a sparsely populated country, and most local people live in single-family villas, so there is still a market for home security cameras and other monitoring products.
4. Household appliances
As a developed country, the living standards of the Australian people are very high, so small household appliances such as sweeping robots, aromatherapy machines, and toasters can be equipped with them. .
5. Mobile phone electronics
Affected by the epidemic or extreme weather, Australian people have to work from home at any time, so home power banks, computer monitors, keyboards and mice and other computer accessories and Mobile phones and other electronic products are necessary.
6. Sports and fitness
Australians particularly like rugby, tennis, swimming, horse racing and many other sports. It can be said that all the people love sports, so in Australia, yoga mats, resistance bands, etc. Sales of sports equipment have also been good.
Australia is an immature blue ocean market, and it is also highly dependent on Chinese goods. It is time for sellers to enter this growing market. However, before entering the Australian market, you should pay attention to the following points. Points:
1) Logistics and transportation
1. Before transporting goods to Australia, you must understand the local rules and regulations of Australia and check whether the goods are allowed to enter Australia, such as Some plants and cleaning supplies are prohibited.
2. Australia is vast and sparsely populated, and some consumers are in very remote locations. Consumers in these places will spend more time and money on online shopping, but this also requires cross-border sellers to To be able to provide consumers with fast and reliable logistics and distribution services, it is recommended that sellers use local overseas warehouses in Australia, which can reduce logistics costs, surpass competitors in logistics, and enhance consumer recognition.
2) Content localization
In order to create a better customer experience, sellers need to ensure that the content is close enough to users and increase audience participation. To understand the Australian language and culture.
3) Social media guides shopping
Australians are very active on social media platforms, and 58% of consumers said that the purpose of using social media tools is to shop. Therefore, sellers can create a multi-channel shopping experience and guide Australian people to browse and purchase products through mobile phones or other apps, and the promotion effect will be better.
4) Provide international services
Cultivating customer loyalty starts from the first time they visit the website, so the speed of the website and the content of the page need to be worked hard to ensure Only through website security can you gain the initial trust of consumers and ensure that consumers can open your website and place orders anytime and anywhere.
Friends who are engaged in cross-border e-commerce for foreign trade should not miss business opportunities. It is recommended that all cross-border sellers can learn about it in advance and be ready to seize the market at any time.