Australia a Prime Spot for International Ecommerce Expansion

Australia a Prime Spot for International Ecommerce Expansion

E-commerce is growing at a very rapid pace in Australia. There are many reasons why your company needs to explore selling internationally into Australia, and this post will explore those details.

First, a look at the Australian shopper. With a population of just 23 million, e-commerce in Australia is largely fueled by a stronger economy and infrastructure, rather than the number of consumers. In 2017, e-commerce sales surpassed USD 10.6 billion and sales are projected to grow to USD 15.49 billion in 2021.

Australian e-commerce and cross-border shoppingAustralian shoppers are also not shy about buying from global e-commerce sites. As many as 33 % of Australian e-commerce shoppers buy abroad due to better availability of products while 32 % buy due to the appealing offers, according to Australian digital marketing firm Contevo. With 4.6 million users, Amazon US was the second-most-popular e-commerce site accessed in Australia in October, according to Nielsen Digital Ratings.

More than four out of five Australians (85 %) have internet access and the number of users is increasing at a rate of 1.7 %. What’s more, the growth of social media use in Australia has brought new ways to connect with prospects. Additionally, there are nearly 20 million smartphone users in Australia. What makes this statistic a reflection of the opportunity in this country is the high adoption of buying online with mobile devices.

Furthermore, last May, the Australian government announced plans to invest another USD 55 billion in more infrastructure “to kickstart Australia’s next growth phase”. The investment will be spread across multiple initiatives including upgrading broadband networks.

E-commerce merchants that want to start selling into Australia do need to be aware of a few upcoming changes. To start, the Australian government’s goods and services tax (GST) of 10 % on low value imported goods will go into effect on July 1. International sellers will need to collect the 10 % GST from the Australian customer at the point of purchase. This means low value goods with a customs value of less than or equal to AUD 1000 (USD 757) will also be subject to GST. It also means that international sellers must register for GST with the Australian Taxation Office if they make or facilitate the sale of more than AUD 75 000 (USD 56 805) of low value goods to consumers in Australia in any 12-month period.

Despite additional regulations, Australia will remain a hot-spot for international ecommerce sellers.

Direct Link looks forward to helping your business thrive in the Australian ecommerce market.