KnowAustralia

Reaching and engaging your consumers

FAMILIARISING YOURSELF WITH THE LOCAL MARKET

  • With no requirement to set up a local entity, a card-dominated payments system and a population familiar with making international and long-distance purchases, Australia is reputed to be a relatively simple market for international e-businesses to enter.
  • Localisation is, however, still vital, with 47% of Australians reporting that they trust domestic online stores more than international ones. Despite this, opportunities for international retailers are great with 53% of Australian retailers still having no online sales channel.
  • A retailer should display all elements of its pricing in Australian Dollars and be transparent about any additional charges. Where international delivery is required, it is essential to be up-front about shipping costs and any export duties or other taxes due. Please see our logistics page for more information.
  • More than 45% of online basket abandonments in Australia relate to concerns over shipping, which is often viewed as too expensive or impractical.
  • Free or value-for-money shipping has been identified as the most important delivery consideration amongst Australian customers and retailers alike, though confidence in delivery services is also seen as crucial. The ability to track a shipment comes in second place, with the use of a known and reputable delivery company following closely behind.
  • When targeting Australian consumers, it is vital to have all pages of your website translated into English; around 77% of the population cannot proficiently speak another language.
  • Australian consumers expect to be offered the online payment mechanisms familiar to them. Some 85% of these customers pay by credit/debit cards, with 13% preferring Paypal and 2% POLi. Please see our payments page for more information.
  • Interestingly, the overall appearance and presentation of an e-shop holds the most weight in ensuring a shopper has a positive experience. At 37%, this was reported to be more important than a website or app’s usability (32%) or customer service (26%).

FACTORS MOTIVATING AUSTRALIAN CONSUMERS TO SHOP ONLINE

MOBILE OPTIMISATION

  • 59% of all Australian consumers (15+) have purchased at least one item on a mobile device in the past 12 months; optimising your online shop for mobile is therefore of the utmost importance.
  • In a survey of companies trading in Australia, 85% had a mobile-friendly website/app, 12% had no mobile capability, and the remaining 3% were using a mobile application exclusively.
  • In Australia, time spent on mobile web services accounts for just 10% of total usage, with 89% of this time spent using applications. Therefore it is vital for e-retailers to setup mobile applications for their online stores to properly engage with consumers.
  • Many Australian retailers are now seeing well over 50% of their traffic coming from mobile devices.

CONSUMER PROFILE

  • Highly educated and technologically gifted with a strong GDP per capita value of $67,463.
  • Decreasingly loyal to a particular brand; the percentage of consumers who made a repeat purchase from a preferred retailer when provided with the opportunity dropped from 32% in 2013 to 13% in 2014.
  • Increasingly particular in their expectations and less likely to forgive a poor user experience; what used to be considered ‘satisfying’ is now a basic requirement.
  • Are in the habit of evaluating retailers both frequently and publicly; 1/3 of Australian interviewees had posted a review to a social network about a retailer they had purchased goods from.
  • Expect retailers to have well-developed platforms and offer a variety of goods to choose from. More than half of Australian online shoppers (58%) prefer a wide range of goods to browse and select from as opposed to a more limited range that matches their style (17%).
  • Relatively comfortable when it comes to sharing personal information (such as mobile numbers) with e-retailers.

PEAK ONLINE SHOPPING

The majority of Australian online purchases take place between the hours of 10am and 4pm on a given day, and decrease as the evening goes on.

Online shopping tends to peak around the 1st of December in the lead-up to the Christmas season.

MARKETING TOOLS

Direct marketing holds a lot of weight with Australian consumers, and electronic direct mail is the best way to entice these customers to an online store. Indeed, a quarter of shoppers (26%) have cited it as the most influential ‘prompt’ to shop online. Offline channels are, of course, also influential, with consumers reporting that discussions with family and friends (23%) and seeing an item in-store (18%) also drive their purchasing activities.

Digital videos are expected to blossom as a channel for marketers operating within Australia, with many digital advertisers planning to increase spending on the platform by 37% in 2015.

Importantly, 20% of Australian consumers used social media to research products, with well over half of these reporting that their research resulted in a purchase.

Other areas of interest

Meeting your regulatory responsibilities

Your chosen route to market will determine the legislative framework applicable to you when trading to Australian consumers

Receiving Payment From Your Customers

Online payment preferences differ depending upon whether an Australian consumer is purchasing from a domestic or foreign online shop.

Getting the goods to your customers

As the 6th largest country in the world, getting to grips with the Australian logistics infrastructure can be a challenge

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