It might be on the other side of the planet, but British retailers are finding great success in Australia, and it could be the perfect target for you too, as you look to grow your online business overseas.
When looking at individual countries, Australia is in the top 20 of the UK’s biggest trading partners with £5.8 billion worth of our exports ending up down under.
Recent trade deals between the UK and Australia have made it easier than ever for British companies to export products into Australasia. Highlights include a new ‘gold standard’ for digital trade and zero tariffs on many products that are perfect for ecommerce.
Tariffs are also likely to shrink or disappear on an even wider selection of goods if the UK joins the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Much of this is due to our close relationship with our antipodean cousins, similar cultures, and the fact we share the same language, and we all love Kylie Minogue!
This does put you on the front foot with over 23 million English speakers meaning you can use similar websites and advertising creative, as well as capitalising on the ‘cool Britannia’ image that still resonates across the world.
But, what about the market size you could tap into? How does this translate to ecommerce sales and possible growth for your business? Well, Statista has the following insights:
- In October 2022, the monthly online retail revenue generated in Australia amounted to just over 3.5 billion Australian dollars (£2,021,239)
- 46 percent of shoppers said they always do some research on the internet first
- The Australian online retail market is projected to reach 35 billion U.S dollars by 2025
- Monthly online retail revenuemore than double what it was in early 2019
- Purchasing apparel, jewellery, and electronics online is growing in popularity
- WooCommerce is the leading e-commerce platform in Australia
A retail snapshot by Real Estate and investment management company, Colliers, has also given some interesting insights into the Australian retail market, which shows Australians are buying more luxury items than most territories:
- The largest increases in sales across Australia were in Household Goods +2.64% and products found in Department Stores +2.82%
- The Luxury Retail market in Australia is worth approximately US$6.7bn annually, with this market expected to growth annually by +5.42% (CAGR 2022-2027) according to Statista. The largest sector for luxury retail in Australia is the Luxury Fashion market, representing $2.6bn annually and forecast to grow to as much as $3.39bn by 2027.
- Millennials and Gen Z now account for more than 30% of all luxury spending in Australia.
This is all good stuff for the ecommerce sector as a whole, but what are Australian customers like and what gets them choosing one brand over another?
Higher Logic found that the Australian customers they spoke to overwhelmingly expect the following from their customer experience:
- Speed (62%)
- Convenience (56%)
- A person to speak to – 57%
- Feeling appreciated – 51%
Research also shows that Australians prefer a no-nonsense approach, they’re a little more cynical than most, and they do still have a love of buying in person that online retailers will struggle to compete with.
One thing, in particular with fashion or trending brands, is that Australians feel they only get access to products six-months after the rest of the world.
So, Francois Lazzari, Austraila Post's COO, says online e-tailers can really grab the bull by the horns to change this.
“Ensure you employ people on the ground who can give you local advice,” he advises.
“You’ll also need to meet service providers, such as third-party logistics providers, accountants and agents, and form a close working relationship with them.”
More on these specifics below, but generally, that’s why their experience on your website, and in receiving the goods they’ve ordered is vital. Make sure at the very least you have the following:
- Lots of images of the products with honest and full descriptions
- An eCommerce platform that will work out tax and exchange rates automatically
- Delivery options that give then a chouse between speed or cost
- Packaging that keeps their orders safe and secure
- Free returns for peace of mind
- Offers in exchange for loyalty
Speaking to fashion retail magazine, Drapers, Francois added this final tip, “offer buy now, pay later. That option is a big trend in Australia, so if you are able to offer it, it drives more sales.”
Remember too, that Australia is the size of Europe. Be clear with a range of delivery times depending on the customer’s location, offering shorter timeframes for those in cities compared with more rural areas.
Delivery is critical to creating a frictionless shopping experience.
Case Study: Apolooks®
Apolooks® eye nutrition is a Netherlands-based company, providing nutritional supplements especially for the eyes and Asendia makes sure they reach every corner of the world.
APO ships worldwide and the company was looking for a fast, reliable, and affordable solution. The challenge was to get the product to a huge range of worldwide destinations as quickly as possible, including Australia.
Speaking about their challenges, Apolooks said, "we sell dietary supplements that must be used on a daily basis. It is therefore important that the order is delivered to the customer as quickly as possible so that the customer can continue to use it.”
Why is this important?
As we’ve mentioned above, you’re already ahead of the game as a UK company as you’re still talking to English speaking customers.
You need not do much to retain your image and localise it to your new target market.
You could change some of the text to use some Australian colloquialisms, and even mix it up with different landing page or hero images, but even if you don’t do that, your e-commerce platform, like Shopify, WooCommerce, or eShopWorld, will work out local currency, shipping, and taxes quite easily and you can still achieve success.
The biggest factor that Australian customers put above anything else, as with almost all customers is service. That means your new customers need to get what they’ve purchased quickly, cheaply and with confidence it can be returned easily and preferably for free.
Asendia, make sure that all Apolooks orders are delivered quickly and reliably so that there was no unnecessary break in eye treatment, while reducing the pressure on customer service.
All products shipped outside the EU are sent on the e-PAQ Plus Mailbox Delivery' service which is of great benefit to APO Pharmaceutical’s customers.
“Asendia gives us a reliable solution for all destinations, resulting in more satisfied customers and fewer complaints to customer service,” said Apolooks.
Great shipping options are key to your customer’s positive experience and helping you gain and keep international customers
Like most territories, Australia has its own way of doing things when it comes to importing goods, and due to the country’s unique ecosystem, some of their rules are far stricter than others.
As an international courier, Asendia fully understand the importance of local laws and can adjust and evolve with them quickly, so you have peace of mind that whatever you’re sending down under won’t be delayed.
What’s more, with an Australian fulfilment centre already firmly in place, you can save costs for both you and your customers by bulk shipping your products, so they’re stored locally and easily ‘picked and packed’ by Asendia, ready to be sent to your customers within the local postal network.
This means they can get what they ordered within a few days, rather than waiting weeks, or paying for expensive air freight.
While Asendia don’t have their own delivery fleet in Australia, (or other countries), they do have strong partnerships with popular, local delivery companies. They will then handle the exportation by air or road and partner with best-in-class final-mile delivery companies.
Whether it’s a national postal operator, a nationwide courier, or an e-commerce parcel specialist in specific cities, retailers have a range of delivery options at checkout that are tried and tested and trusted. Offering shoppers familiar, reliable, and affordable delivery is proven to increase your conversion rate and reduce delivery queries and complaints.
Asendia handles the parcel shipping and returns handling for some of the biggest names in retail and thousands of smaller e-tailers too.
To hear how Asendia could help you make the most of Australia, drop us a line.
