The Australian e-commerce market has witnessed transformative growth over the past decade. This blog will explore this rapidly evolving industry’s key trends, market dynamics, and future, mainly focusing on stakeholder analysis.
Australian consumers are increasingly shifting their retail activities online. In 2023, 93% of online shoppers purchased from platforms like Amazon, eBay, Catch, and emerging players such as Temu. 94% of consumers intend to continue shopping online in the coming year. The Australian e-commerce market has emerged as a dynamic and rapidly evolving sector, driven by widespread internet penetration, increasing consumer confidence, and shifting towards online shopping as the preferred retail channel. With a market value of USD 30.51 billion in 2023 and projections reaching nearly USD 48.79 billion by 2032, this growth is underpinned by a robust compound annual growth rate of 5.3%.
There are several factors contribute to this robust growth:
• Increased Internet Penetration: As of January 2023, 91% of Australians had Internet access, providing a solid foundation for e-commerce activities.
• Increase in Consumer Confidence: Australians have increasingly embraced online shopping, attracted by its convenience and the variety of products available. Trust in digital payment systems has further bolstered consumer confidence, encouraging more online transactions.
The battle for dominance in Australia’s e-commerce space has intensified, with Amazon overtaking eBay as the leading online marketplace in 2024. Amazon recorded 75.2 million monthly site visits, surpassing eBay’s 50.9 million—a striking 48% lead in late 2023. According to my analysis, three factors were paramount to this success. Fast delivery service that meets consumer expectations, competitive pricing, and extensive product diversification that even extends their revenue. While eBay focuses on secondhand goods and auctions, it has experienced a decline in its active user base in recent years. In 2022, eBay reported 131 million active buyers, marking an 8% decrease from the previous year. This downward trend has persisted, with active users declining since 2018.
Amazon has established itself as the dominant player, leveraging fast delivery services, competitive pricing, and extensive product diversification to secure a commanding lead in the market. In contrast, while maintaining strength in secondhand goods and auctions, eBay has faced declining user engagement, reflecting the need for innovation and adaptation. Emerging players like Temu and Shein also disrupt the landscape, introducing fresh competition and influencing market dynamics. As the e-commerce ecosystem develops, it accentuates the importance of data security from all internet transactions and the consumers’ privacy.
<References>
“Australia E-Commerce Market Report 2023-2027: Firms Are Extending Their Strategic Collaborations to Further Strengthen Their Position.” Yahoo Finance, 25 Jan. 2024, finance.yahoo.com/news/australia-e-commerce-market-report-110100003.html.
Law, Daniel. “Australian ECommerce Statistics 2022.” Red Search, 6 Jan. 2023, www.redsearch.com.au/resources/australian-ecommerce-statistics/.
EBay vs Amazon Australia | Locad. 6 Dec. 2023, golocad.com/blog/ebay-vs-amazon-australia/.
Bencic, Emily. “Amazon Overtakes EBay as Leading Australian Marketplace.” Retailbiz, 13 Feb. 2024, www.retailbiz.com.au/online-retailing/amazon-overtakes-ebay-as-leading-australian-marketplace/.
Curry, David. “EBay Revenue and Usage Statistics (2022).” Business of Apps, 15 Dec. 2021, www.businessofapps.com/data/ebay-statistics/.
International Trade Administration. “Australia – ECommerce.” Www.trade.gov, 2024, www.trade.gov/country-commercial-guides/australia-ecommerce.
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