When it comes to selling goods down under, some e-traders can be a little put off by the distance. However, with a strong economy, a highly skilled workforce and a high internet penetration rate, Australia presents a compelling opportunity for e-commerce. And, with a good shipping process you can get your goods there in under a week.
#Why ship to Australia?
With the eleventh largest e-commerce market in the world and growing, there’s good reason to consider Australia as your next shipping destination. The country has a well-developed infrastructure, large population of digitally savvy consumers and a robust economy. In other words, there is spending power there and a willingness to use it online.
Australians are not opposed to buying overseas either. In 2022, 28% of Australian’s purchased products from international sellers, and 14% of those were UK sales, according to Australia Post. And don’t forget about all the expats living in Australia who already have an affinity with certain foreign brands.
#Reasons why Australia is prime for e-commerce
Strong economy There is substantial spending power in Australia due to a stable economy with a high disposable income.
High internet usage Most Australians have reliable internet access, and they are prepared to shop online.
Modern consumers Australian consumers are digitally sophisticated and comfortable with online shopping across various categories.
Robust infrastructure Developed delivery networks and an efficient postal service means fulfilment is generally smooth in Australia.
Positive regulatory environment Clear regulatory laws regarding online commerce ensuring stability for traders.
Mobile first market Significant amount of online shopping occurs using mobile phones.
Openness to cross-border shopping Australians are increasingly looking towards overseas online retailers.
#Do I have to pay duties and import taxes for a package from UK to Australia?
A big positive for trading with Australia, is that it has a high duty and tax de minimis of $1,000 AUD – approximately £499. This means that orders valued below this amount will clear free of duties and taxes. This also includes the 10% GST. This is great news for e-commerce businesses as it means your deliveries will not only be tax and duty free, but there will be less chance of them getting delayed in customs.
Australia is a tax-friendly market for goods under $1,000.
Under $1,000 AUD = Duty and tax free (including GST) Over $1,000 AUD = Subject to duty and tax during customs clearance Over $75,000 (business sales) = Must register for an Australian GST number GST = 10% on most goods and services
#Which e-commerce goods are popular in Australia?
Clothes and shoes have long been at the top of online shopping lists in Australia, especially amongst 18-26 year olds, according to Australia Post. Generations Y, X and Boomers all shop for the home and garden, however Gen Y (ages 27-43), are also fond of their specialty food and liquor.
Could your product be of special interest? According to a recent study by Forbes, fabric, yarn, lipstick, pimple patches, scented candles, press-on nails, beads, vinyl records, hair oil, portable charges, false eyelashes, fake tan and craft supplies are all popular on the Australian e-commerce market right now, to name a few.
#What do I need to be aware of when shipping to Australia?
First off, Australian shoppers aren’t used to being kept waiting for their goods. In fact, 68% of Australian shoppers are likely to abandon their cart if they feel your delivery method is too slow, according to a PowerRetail Trajectory Report. As an international seller you can’t compete with the next day deliveries that some Australian retailers can promise, however, having a clear and consistent delivery process will go along way towards helping you secure first and repeat business.
Secondly, Australian consumers like to have options when it comes to making returns. According to a survey conducted in 2020 by global e-commerce tech provider, Doddle, 72% of Australians check a returns policy before committing to a purchase and 41% have stopped shopping with a particular retailer altogether due to a poor online returns process. So, considering your returns policy makes good business sense.
On the administrative front, you will need to ensure that you fill out a customs declaration for anything you deliver to Australia, containing a description of the goods and the value of the package. Lastly, don’t forget to ensure that your goods are not on the list of prohibited items. You can check the list here.
#What is the cheapest and easiest way to ship to Australia?
If you ship an item to Australia with SAMOS, it will arrive between four to six working days. You will be able to track your parcel at every stage and supply your customer with complete transparency over their parcel’s whereabouts.
Our service guarantees one price and no surcharges – check out our shipping rates here. Importantly, your customer will never be asked to pay any unexpected duty, customs or local handling fees on the doorstep. Instead, this will be communicated to you and charged separately.
#Can I organise a cost-effective returns service from Australia?
The answer is yes. SAMOS operates a fully managed parcel returns service. The easy-to-navigate portal blends seamlessly with your website, it is fully customisable and provides you and your customer with delivery progress at every key stage.
We designed our returns service with small to medium sized e-commerce businesses in mind, keeping it cost effective and easy to manage, and with support on hand whenever needed.
#In summary
Australia is a lucrative market for cross-border e-commerce, and you can ship there without paying duties or taxes on most items. To make your brand relevant to Australian consumers, ensure you provide clear and consistent deliveries, and a robust returns strategy should they change their mind.
For more information on delivering to Australia, including shipping and returns, get in touch with SAMOS, or read about what our customer say about us.
