Australia B2C Ecommerce Market Report 2022-2026: Market to Reach $79.72 Billion by 2026 from Over $50 Billion in 2022 - Marketplaces are Integrating Innovative Payment Solutions to drive Growth
DUBLIN, Sept. 23, 2022 /PRNewswire/ -- The "Australia B2C Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics - Q2 2022 Update" report has been added to ResearchAndMarkets.com's offering.
The B2C market in Australia is expected to grow by 11.66% on an annual basis to reach US$52,257.4 million in 2022.
The medium to the long-term growth story of the B2C Ecommerce industry in Australia promises to be attractive. The B2C Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 11.14% during 2022-2026. The country's B2C Ecommerce Gross Merchandise Value will increase from US$46,799.7 million in 2021 to US$79,723.0 million by 2026.
In Australia, the B2C e-commerce sector has been picking up the pace for years. While the global pandemic outbreak has accelerated the shift online, the trend has been increasing for the last four to five years. New shopping habits that have been formed over the last two years are now firmly ingrained.
Looking ahead, the B2C e-commerce industry to continue to grow much faster than physical retail in Australia.
Regarding e-commerce marketplaces, Amazon is leading the growth in the B2C e-commerce segment. As much as 55% of the buyers use Amazon to browse products in Australia.
Alongside Amazon, MyDeal, an e-commerce marketplace focused on selling bulkier physical products such as sofas and tables, is also quite popular among consumers. Products sold on the MyDeal e-commerce platform are exposed to an audience of more than 1 million per month.
Regarding social media marketing, e-commerce brands widely use Facebook's Shop feature. Other channels such as Pinterest and TikTok are also gaining a strong foothold among e-commerce brands in Australia. The publisher expects further competition among players over the next three to four years as the market continues to evolve and grow.
E-commerce retailers are focusing on customer experience to gain market share in Australia
In response to the increased need for better customer experiences, online retailers focus on improving customer experience to acquire market share and enhance revenues.
Designerex, the peer-to-peer designer dress sharing platform, knew they needed to deliver a great customer experience to gain market share in Australia. Because of their peer-to-peer business model, the e-commerce marketplace could not control the inventory. Consequently, the firm worked on perfecting everything from payment solutions to shipping. Since the pandemic outbreak started in Australia, Designerex has recorded a growth of 650% in its active monthly users as of December 2021. Moreover, the e-commerce marketplace expects over A$50 million worth of dresses to be booked on its platform over the next 18 months.
Marketplaces are integrating innovative payment solutions to drive their growth in Australia
With the global pandemic outbreak, the purchasing power of consumers reduced significantly. Consequently, consumers were looking for innovative payment methods that could help them increase their spending power while not affecting their cash flows.
Amazon Australia, one of the leading e-commerce marketplace, integrated the BNPL service offered by Zip, thereby allowing the consumers in the country to pay for their purchases in installments. The adoption of the BNPL service has surged significantly since the global pandemic outbreak. Consequently, many online retailers have integrated the BNPL payment option at their checkout pages in Australia.
The integration of such innovative payment options has helped online retailers not only to attract new shoppers but also to experience increased sales. The widespread adoption and use of BNPL services are among the major factors that have supported the growth of the B2C e-commerce industry in Australia over the last two years.
Social media firms are launching e-commerce capabilities allowing retailers to sell directly to consumers in Australia
Amid the rising number of shoppers shifting to online channels to complete their purchases in
Instagram, Facebook, and TikTok are social media platforms that have entered the social commerce arena. In May 2020, Facebook launched the Shops marketplace, allowing shops in Australia to sell products directly to consumers via the social media site. Instagram also launched a Shop tab on its mobile application in November 2020.
With the growing trend for social shopping among consumers in Australia, TikTok also entered the market through a strategic collaboration with Shopify to launch a product that allows consumers to discover and shop for items through the platform. In addition, TikTok allows businesses and retailers to create Business accounts, allowing them to access value-added functions and data analytics.
E-commerce startups raising big investment rounds in Australia
The retail shopping landscape has changed significantly over the last two years, ever since the global Covid-19 outbreak. With more and more consumers shopping online, new and innovative startups have emerged in the market. These startups are looking to provide consumers with personalized shopping offers and deals. To launch and scale their services, these startups are raising funding rounds in the country.
In May 2021, Little Birdie, an Australian e-commerce startup, announced that the firm had raised A$30 million in pre-launch funding from one of the largest banks in the country, Commonwealth Bank of Australia. The e-commerce aggregates more than 70 million products from a host of different brands and online stores, intending to become the first thing when consumers in Australia think of shopping.
Food delivery providers are adopting a subscription-based strategy to differentiate their product offering
Several players in Australia have entered the online food delivery segment amid the growing demand during the global pandemic outbreak. With the market becoming overly crowded, firms are now adopting a subscription-based strategy to differentiate their product offering.
My Foodie Box, the online food delivery provider in Australia, offers meal kits on a weekly subscription-based model. Its price per meal ranges from A$8 to A$13 plus delivery charges. Notably, the firm also allows consumers to add staple pantry items and fruits and snack boxes as needed to their delivery.
The number of active subscribers had surpassed 2,000 as of May 2022, with the company hoping to treble its subscriber base by the end of 2022. Currently, the firm is generating an average revenue of A$132,000 per week, which results in an annualized run rate of A$6.5 million. By the end of 2022, the firm is expecting an annual revenue of A$13 million.
The firm also raised A$6 million through an initial public offering which closed on 7 January 2022.
Grocery giant acquires online marketplace to compete with big players in the B2C e-commerce segment
With the e-commerce transactions representing an increased percentage of total retail sales in Australia over the last two years, more players are seeking to enter the online retail market and gain market share while diversifying their revenue streams. As a result, companies in Australia are engaging in mergers and acquisitions.
Woolworths, the supermarket giant that allows consumers to buy groceries online, announced its plans to buy online marketplace MyDeal for A$243 million. In May 2022, the firm told its shareholders that it had agreed to purchase an 80% majority stake in MyDeal for A$1.05 per share.
Through the acquisition of MyDeal, the firm aims to compete with big players Amazon and Kogan in Australia. The addition of MyDeal to the Woolworths Group represents the firm's vision to deliver a more holistic experience to consumers in terms of food and everyday needs.
Australia B2C Ecommerce Market Size and Future Growth Dynamics
Australia User Statistics and Ratios of Key Performance Indicators
Australia B2C Ecommerce Market Share by Key Players
Australia B2C Ecommerce Market Size and Forecast by B2C Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2017-2026)
Australia B2C Ecommerce Market Size and Forecast by Retail Shopping Sales Channel
Australia B2C Ecommerce Market Share by Travel and Hospitality Sales Channel
Australia B2C Ecommerce Market Size and Forecast by Online Food Service Sales Channel
Australia B2C Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2017-2026)
Australia B2C Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis, 2017-2026)
Australia B2C Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis, 2017-2026)
Australia B2C Ecommerce Market Size and Forecast by Operating System
Australia B2C Ecommerce Market Size and Forecast by City
Australia B2C Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2017-2026)
Australia B2C Ecommerce Consumer Demographics
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