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6 Trends shaping the future of eCommerce in Australia

By July 30, 2018October 23rd, 2018No Comments

The eCommerce industry is booming, in Australia and around the world and is showing no signs of slowing down.

This got us thinking. What are the current trends that are shaping the future of eCommerce? We did some digging and here’s what we found.

An overview

According to an IBIS World report, the Australian eCommerce industry is growing rapidly at 13.5% annually. To add more fuel to fire, according to Statista, global eCommerce sales are expected to increase by 246% by 2021, from 1.3 trillion in 2014 to 4.5 trillion in 2021.

1. eCommerce is growing, but physical retail is still king.

Even though the eCommerce industry is growing at a rapid pace in Australia. Physical retail is still king.  According to Australia Post’s Inside Australian Online Shopping Report, online retailing makes up only 8% of total traditional retail sales at the end of 2017. Which means eCommerce has a long way to go to be able to take the crown from physical retailing. However, the same report predicts that 1 in 10 items will be bought online in Australia by 2020.

2. eCommerce Automation

There is a new secret weapon in the world of eCommerce. Want to know what it is?

It’s called eCommerce automation. For years the worlds biggest companies built their empires by automating their business so they could save time, lower costs and sell more. Now you can do the same for your eCommerce business.

By using third-party applications such as Zapier, eCommerce businesses owners are now able to automate parts of their business saving time and money.
Recently, Shopify has taken this one step further. With tools such as Shopify Flow, LaunchPad and Shopify Scripts which allow you to automate various aspects of your Shopify site all on the same platform making automation easier than ever before.

3. The rise of M-Commerce

In the past shoppers have been reserved in making purchases using their mobile phones. This is now starting to change, with purchases from mobile devices growing by 58% in 2017. By contrast, purchases using a desktop fell 11% from the previous year. Today, 1 in 5 online purchases are made on a mobile device with this number predicting to grow in the coming years it is important for eCommerce businesses to optimise their site for mobile or risk falling behind competitors.

4. The birth of the hybrid storefront

If you are in the retail game you have definitely heard of bricks and mortar and online stores and the differences between the two. (If you want to learn more about this check out our blog here) 

Bricks and mortar stores in Australia are facing a tough challenge, as shoppers begin to move to online stores for discounted prices and the ability to buy anything from anywhere. Due to the impact that eCommerce has had on our retail landscape, physical retailers have been forced to adapt in order to compete. Because of this, we have seen the emergence of “hybrid retailers” a combination of physical and online retailers. We have seen stores such as Coles and Myer go from physical stores to multi-channel retailers who use the online shopping boom to their advantage. We have also seen businesses go the other way, with online stores launching and growing to a point where they can  become physical stores. Perth streetwear label Oli Clothing is an example of this trend.

According to IBIS World an increasing number of Australian bricks and mortar stores are opening flagship stores to act as showrooms, with the purchases of products being completed online.

5. Buy Now Pay Later (BNPL)

New payment services are changing the game.

Buy Now Pay Later (BNPL) technologies are here to stay. Australia Post estimates that BNPL payments accounted for 7.7% of total online goods spend in 2017. BNPL providers such as AfterPay, make it possible for a user to buy a product now and pay in instalments later. This method of payment is convenient for both the consumer and the retailer.

The consumer is able to pay for those expensive designer shoes, and the retailer can offer an easy form of payment that tips the consumer over the edge to make a purchase decision. Startup eCommerce businesses can use BNPL systems to kick start their eCommerce sales and growth. For eCommerce businesses in their infancy converting a paying customer is hard. There is a lot of doubt and uncertainty over shopping at a new eCommerce store that you have never heard of before. BNPL technologies can help bridge the gap between uncertainty and doubt and and consumer who is ready to make a purchase.

6. Scaling with Order Fulfilment Providers

As discussed earlier, eCommerce business owners are looking to automate their online store, so they can save time, cost and sell more product. However, not only are online store owners automating their site but also their operations. Order fulfilment partners allow eCommerce stores to scale without all the unnecessary overheads of doing it in-house. Order fulfilment providers such as KeepSpace, provide a personalised order fulfilment service, which fully integrates into your store and allows you to scale your online store, minus the overheads protecting your profit margin.

If you are interested in scaling your online business with an order fulfilment partner, send an email to for a free quote.

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