Australia, e-commerce and logistics
Many businesses are hesitant to branch out to somewhere as far afield as Australia.
and that’s understandable when there is over 10,000 miles between us. But with the right shipping information and expert support, the world can seem a whole lot smaller.
Why Australia?
Boasting a strong economy and a diverse and highly-skilled workforce, Australia has a lot to offer as a new trading destination. Australia’s economy is predicted to grow by 1.6% in 2023 1, continuing to outpace other advanced economies.
Some of the unique advantages that Australia offers as a country include a low tax and adaptive regulatory trading environment, and an open economy with strong worldwide connections, especially in the Asia-Pacific region.
- 50%
- Australians shop online for clothes
- 24.9 bn AUD
- E-commerce percentage of total retail sales
- eBay
- Leading online marketplace
Stats taken from https://www.statista.com/chart/18214/most-popular-online-purchases-australia, https://www.statista.com/topics/7683/e-commerce-in-australia/#topicOverview
The e-commerce landscape
Australia’s e-commerce market is growing rapidly and has become the eleventh largest e-commerce market in the world, with revenue predicted to reach USD32.3 billion by 2024. This represents a year-on-year income of 15.5% 2.
According to Australia Post, the UK currently accounts for about 14% 3 of overseas e-commerce purchases. Customers are attracted to increased product offerings and cheaper prices. PayPal reigns as the payment platform of choice, with 48.8% 4 of all online payments being made this way.
Opportunities
Over nine million Australian households made online purchases in 2022 5, with expenditure rising during sales events – such as the cyber sales period – particularly in November (Black Friday) and in the run up to Christmas.
Although it’s clear that Australians are growing more accustomed to online commerce, many retailers are not yet sufficiently prepared to deliver a seamless e-commerce experience, according to We are Social 6. This suggests that there is huge opportunity to pave the way for an improved customer experience by integrating shopping platforms, such as Shopify, and build brand loyalty.
The most popular online purchases made in Australia
What Australians Shop for Online
Products Australians said they shopped for online in the past year
Source: https://www.statista.com/chart/18214/most-popular-online-purchases-australia/
Logistics
Naturally, one of the main points to consider when shipping to Australia is the distance and whether you can control your costs whilst still achieving a high level of customer service and customer satisfaction. A good understanding of shipping costs, transit times and important taxes duties will help you create a robust and seamless delivery strategy.
The essentials
| Transit Times | Metro & Urban areas up to 7 working days. Remote areas < 2% total population. |
| Maximum Dimensions | No one side > 105 cm length. Dimension > 0.25 cubic meters. |
| Maximum Weight | 22kg |
| Maximum Container Value | AUD 2,000 |
| Low-Value Limit | AUD 1,000 |
| GST 0% | 10% |
| Duty | Variable based on product; Applicable on orders over AUD 1,000 |
| DDP Available | Yes |
| DDP Fee | As Agreed |
| Clearance Fee | As Agreed |
Keep in mind
A Goods Service Tax (GST) may be charged at a rate of 10% of the landed value of the goods originating from overseas (1/11 th of the amount you charge on sales). If you live outside of Australia, you must register for GST using your ABN number if both of the following apply.
- You are carrying on a business or enterprise.
- Your GST turnover from sales connected with Australia is equal to, or greater than, the registration turnover threshold of A$75,000.
GST turnover includes:
- Imported service and digital products to Australian consumers.
- Low value imported goods to consumers.
However, if you sell through an online marketplace or electronic distribution platform you may not need to register for GST. For more information on whether your business meet GST requirements visit: www.ato.gov.au/business/international-tax-for-business/Non-resident-businesses-and-gst/
What our experts say:
“With year-on-year online retail growth, it’s certainly an exciting time to branch out to Australia.
With the right kind of logistics, you can help shape the consumer experience too.”
Ben Bagnulo, CEO, SAMOS.
To find out more about how SAMOS can help you achieve fast and cost-effective deliveries to Australia get in touch today
1 https://international.austrade.gov.au/en/why-australia/benchmark-report
2 https://www.trade.gov/market-intelligence/australia-ecommerce
3 https://www.trade.gov/market-intelligence/australia-ecommerce
4 https://www.statista.com/topics/7683/e-commerce-in-australia/#topicOverview
5 https://wearesocial.com/au/blog/2020/01/digital-2020-australia/
6 https://wearesocial.com/au/blog/2020/01/digital-2020-australia/