“Swipe, swipe. Oh, look! That top is cute! I want it now.”
Michele Levine, CEO of Roy Morgan, says: “Online shopping has been revolutionizing the way we shop for the last two decades, and more and more Australians have begun embracing the convenience, range, ease, and value that come with it. As technology becomes more readily available and easy to use, and as industry giants such as Amazon begin catering to the local Australian market, it’s predicted that an even greater share of the market will find itself being traded online.”
With that said, manufacturers are scrambling to come up with better ways to fulfill their consumers’ needs and wants. Here are a few buying trends that have been observed recently:
- Buy Now, Pay Later
Last year, 6.7% of online goods were purchased through the buy now, pay later model channels.48.3% of all BNPL purchases last year were from fashion purchases.
- E-wallets over Credit Cards
Due to the popularity of the BNPL model, third-party mobile and online payments are on the rise. Only 47% of Australian online shoppers utilize their credit cards for their online purchases whilst the rest use e-wallets such as Paypal, AliPay or Amazon Payments.
About 37% of online payments will have been processed via these third-party mobile ad online payments in the year 2023.
- International Shopping Traditions
Black Friday and Cyber Monday sales have also influenced Australians shopping tendencies. Just last year there was a 28% growth in online shopping for these special holidays.
Seasonal items are also sought after online rather than in physical stores.
Holidays equal to more discounts and who doesn’t love a good bargain?
- Overseas Retailers
57% of online transactions are purchased from online retailers. 40% of which were from China.
The potential for growth in e-commerce businesses are mainly looking to expand their reach global-wise. Nowadays, being global doesn’t mean you have to set up warehouses and headquarters at each and every country. With e-commerce, social media is your best friend!
- Mid-Evening Shopping
Browsing online using multiple devices continues to shape the e-commerce world. With this, more consumers are most likely to shop later in the day with 32% of purchases made between 7:00PM – 10:00PM.
Retail therapy in the comfort of your own home in your week-old pajamas is the new comfort hobby.
- Green Consumerism
As consumers are more aware of social and environmental impacts, many are choosing to purchase from ethical companies that align with their personal values. 60% of Australians prefer parcels with sustainable packing whilst 50% are willing to pay an additional 15 cents for sustainable packaging.
There are numerous items we could purchase, but nature isn’t one to be bought.
- Need for Speed
Online shoppers are expecting faster service and retailers are now offering a quicker fulfillment and shipment option. Next-day deliveries have grown by 31.7% and more than 62% of these are fashion related.
Patience is a virtue but I want those shoes, NOW!
What does this mean for the rest of 2019?
Online shopping is just starting to ramp up as we move towards the largest shopping events of the year: Click Frenzy in the first week of November, Black Friday and Cyber Monday in the first week of December and Boxing Day or New Year’s in the later weeks of December.
Prepare your enterprise for extended sales to snap up shoppers before the Christmas season by:
- Taking the opportunity to move the old stock
- Manage returns with a clear and up-front policy and reasonable timeframe
- Make allowances for the extended sales periods compared to previous years
- Keep an eye on stock levels, resources and manage customer expectations
The success of marketplaces such as eBay, Catch and Amazon paves an exciting era for online retail and Australian retailers are presented with boundless opportunities. These data reflect how the Australian consumer shops online so make sure to use these statistics to your advantage. Adjust, keep up, innovate and venture on!
With a team of global experts, with a deep understanding of their respective functions, Click & Connect (www.clickandconnect.co) provides expert management consulting services focused on your most critical business challenges and your largest opportunities.
Get in touch with us at email@example.com for an informal discussion.