eCommerce is booming, and gaining more traction than ever before. Even as we write this article, another person turns to eCommerce to make a purchase. And the continued growth of eCommerce has only been further cemented by the impact of COVID-19, with online purchases now set to make up a total of 15% of the retail market in Australia.
So with online buying continuing to increase, which channel are Australians turning to when making their purchases? And what other reasons make people choose the web over the high street?
Why do Australians shop online
Australia, similar to the rest of the globe, has seen a big increase in online sales over the last few years.
And with 85% of Australians now actively using the internet, it is no surprise that Australian eCommerce has also seen that growth. So what are the main reasons behind Australians choosing to shop online?
Online shopping was already seeing an increase through 2018 and 2019 in areas like fashion, food, and seasonal items. And this trend only continued once the pandemic hit in 2020. In fact, over 200,000 new Australian online shoppers appeared in the wake of COVID-19 and 5.2 million households shopped online in April 2020 alone.
Australia Post released their 2020 eCommerce Industry Report which takes an extensive look at 2019 trends as well.
Wirecard’s Global Consumer Report stated that convenience plays a big role in shoppers preferring to go the online route. It’s much easier to compare a variety of options and find the exact product you’re looking for in a few clicks.
Another incentive is having multiple ways to make online payments, like through apps or the scan of a finger, and having the option to BOPIS (buy online, pickup in store). BOPIS combines the benefits of saving time, feeling more secure, and saving money on shipping costs.
Source: Webalive.com.au
Finding the right channel for your business
So, you’ve decided to sell online in Australia. Now what?
Time to find the optimal channel (or channels) to best support your business. Take some time to think about what you want out of a channel and what your end goals are.
Channel overview
When first considering a channel, go to the site and take a look around to gather your first impressions. Pay attention to factors such as what kind of products there are popular and if there are many sellers with similar items to you. If so, will you be able to be competitive with your prices and shipping costs?
If there aren’t products like yours, it doesn’t necessarily mean the channel isn’t for you. It could be that there’s some untapped potential and that by choosing to sell there you would have the market to yourself.
Will it work for you?
There are very real limitations that may keep you away from a particular channel.
What does your budget look like? If your main focus is elsewhere and you’re just trying out selling in Australia for now, you may not want to commit a big chunk of your budget’s focus right off the bat. In that case you’ll want to watch out for high seller’ fees.
Compare each channel’s fees along with the marketing costs of bringing awareness to your product. If there’s high fees but also possible to get a lot of organic traffic (like Amazon) then it might even out.
Shipping and fulfillment costs are also an important factor. Check to see if the channel has their own fulfillment plan which may save you money in the long run, or if you’ll need to handle it yourself.
Getting started
Unless you have the time to learn the ropes of more advanced channels, it’s a good idea to find one that has easy entry.
Customer support and ease of use are great selling points. Knowing that there will be a representative to help in case you need it can give you the confidence to choose that channel.
Also make sure to read through some reviews from sellers to get a general idea of what their experience has looked like.
But, if a steeper learning curve doesn’t turn you off, go for it!
What are the most popular channels in Australia?
With eCommerce continuing to rise in popularity, let's take a look at some of the main players in the market at the moment:
- Amazon
- eBay
- Catch
- ASOS
- MyDeal.au
- Kogan
- eWorldtrade
Here you can get some statistics on which local Australian channels are most used in Australia.
Know your options
As a merchant, you're not short on options these days. So that can make narrowing them down and making a final decision difficult. Our goal is to help take some of the stress away by giving you a full analysis of some popular channels. We hope by the end your decision will be a little easier and you'll have a clear idea of which direction to go.
Amazon
Summary
Amazon is the biggest marketplace around the world. It is also the prominent marketplace in Australia. It is often the first place many shoppers will search, which makes it a great place to sell, no matter what size business you own. Amazon has a wide range of product sections, so you can sell almost anything. The website is highly functional, shows reviews clearly and is trusted by consumers. However, Amazon also has separate websites for separate countries. This can somewhat restrict the amount of potential consumers. You are also stuck with the currency and language for the current location. This can act as a deterrent for many non native English speakers looking to order.
Channel focus
Amazon is known for hosting almost any item shoppers are looking for. This has made it a go-to place for people to shop with convenience. For merchants looking for a platform to start out with, Amazon is ideal for non-specialty products.
Pricing/Fees
Amazon.au has 3 different fee categories that contribute to the total fee.
1. The selling plan.
The basic plan is free and you only pay when you sell an item. It's available for up to 50 items. After that, you move onto the professional plan, which costs 49.95 AUD per month.
2. The referral fee
Both plans require a second type of fee, the referral fee. This one is usually between 8-15% per sale, depending on the category of your product.
3. The optional fulfillment fee
This is charged if you choose to use the fulfillment by Amazon service, which packs and ships your order for you.
This fee is charged for merchants who use the fulfillment by Amazon service. Use Amazon's revenue calculator to see if it will be profitable for you.
Ease of use and integration
Difficulty: Medium
The pros of choosing Amazon is that their Seller’s Central interface won’t give you any troubles. It’s pretty straightforward to use and there are plenty of help articles to get you through any issues you run into.
The more difficult aspects of Amazon come from their product requirements. Amazon is strict. In order to get your products approved you’ll need to meet all their requirements to a T. Furthermore, you’ll need to spend some time optimizing your listings in order to win the Buy Box and avoid any potential errors.
Loyalty Programmes
At this time, it's not not possible to set up your own loyalty schemes while selling on Amazon.
Language, currency, and location availability
Amazon has separate websites for each country it supports. Because of this, it's not possible to change the language and currency without going to one of the other websites. Despite that, buyers can use Amazon websites around the world.
While shopping, the websites automatically checks the user's location and lets them know which products can be shipped to them. This means you can sell worldwide through Amazon, you will just have to create additional accounts.
Platform trust and security
Amazon's platform is fully secured and highly trusted among eCommerce channels.
Contact and social media
Amazon support is available to contact through the LiveChat feature on their website. Once you're connected with a team member, they are very responsive and effective. They also run an active Twitter account where you can catch their attention and get help through as well.
Payment options
Purchases on Amazon can be made using the most common methods. Major companies like Visa, Mastercard, American Express, and UnionPay are accepted as well as gift cards and 'Pay at your pace with Zip'.
Returns and cancellations
Amazon makes returns and cancellations a breeze. What's more, both the buyer and the seller are protected so no one looses out. A fair solution is always guaranteed since Amazon acts as neutral ground between the consumer and seller. Even email communications between the two are handled through Amazon's platform.
Wish lists
Customers are able to save items they like to a wish list. This allows them to be purchased at a later date, when customers return to the platform.
Is there an app/Is it mobile friendly?
Consumers are able to browse and shop on the go with both a mobile-friendly version of the website and a mobile/tablet app.
Review clarity
Customers are easily able to share their honest views of their experience buying from you, It's also a great opportunity to show potential customers that you're a reliable merchant. They're also searchable, making it an even better feature for shoppers. Just remember, you'll need to click the 'request a review' button after the order is completed in order to get reviews.
Images/Videos
Amazon has set up specific product image and video requirements. This helps to establish an even playing field amongst vendors. You'll need to keep a close eye on these to avoid disapprovals.
Sales prices, shipping, and taxes
Sales prices are shown next to regular prices, with the discounted percentage also visible. This helps to give customers perspective of the extent of the discount. Taxes are all included in the original listing price. Shipping is added at checkout, with costs varying depending on the merchant and their shipping options.
eBay
Summary
eBay is another world renowned platform with a large influence in Australia. eBay, which originally started as an auction website, has since expanded to a fully fledged marketplace, with both buy now and auction sales options. Although, as things stand eBay listings still rely on other merchants to sell products, as the brand offers none of their own.
eBay has categories for a wide range of products, so it is a great place to start selling. The platform also collaborates with Coles supermarkets, to bring Australian customers grocery shopping to a well known marketplace.
Channel focus
eBay offers a wide range of products. The platform is designed to be easy to use, due to the amount of one time sellers, and people selling secondhand goods.
Pricing/Fees
eBay’s fees differ vastly based on a number of factors, including:
- Whether you’re a one time seller, or own an eBay store
- The category of the product you are selling
- Whether you are selling your product/s as ‘buy now’ or ‘auction’
- Whether the starting price is under or over 100 Australian dollars
- Whether you use optional listing upgrades
If you do own an eBay store you will pay one of the following prices depending on the size of your store:
Listing fees of between 1.65-3.85 AUD are then added to this, along with optional listing upgrades.
Ease of use and integration
Difficulty: Medium
The work starts after listing your items on eBay. You should do extensive research on other sellers offering the same products as you. Are there a lot of similar items and how much are they going for?
eBay does charge sellers for items, but you’ll be able to list the first 200 for free (in most cases). So starting small is a great strategy if you want to try this channel out. Just remember to double check their policies before you begin.
Loyalty Programmes
Unfortunately, eBay does not allow individual reward schemes and limits you to its own.
Language, currency, and location availability
Because of having more than one website, eBay is limited to English and the Australian Dollar. If you'd like to change your location, you'll need to go to the eBay store for the desired country.
Platform trust and security
eBay is a secure platform. It is known, and trusted in Australia as well as worldwide. It has many security policies establishes so that both shoppers and sellers are safe.
Contact and social media
Getting in touch with eBay support is simple. You can do it through their website or social media. Most methods get a response within the same day.
Payment options
eBay accepts most major forms of payment:
- Debit cards
- Credit cards
- PayPal
- Cash
- Bank transfers
- Cheque
- Online payment services (Like AllPay)
Returns and cancellations
eBay has a fair policy regarding both returns and cancellations, that considers both buyers and sellers. To begin the returns/cancellation process, buyers must select the option from the drop down box within the orders section. eBay acts as a middleman for buyers and sellers during returns and cancellations. This ensures that transactions are always fair for both parties.
Wish lists
It's possible for shoppers to add items to their wish list so they can go back and buy it later.
Is there an app/Is it mobile friendly?
Yes, eBay has an app and a mobile-friendly website.
Review clarity
As a buyer, eBay allows you to review both the purchase and the seller. This gives sellers double the opportunity to get ahead of the competition in terms of being a trusted merchant. Reviews are easily accessed on eBay. They are also mediated. Therefore, you shouldn’t receive any unfair reviews that damage brand image, unless they are warranted.
Images/Videos
To make sure that competition is fair, eBay sets specific requirements for images. This way all product listings are at the same standard, which is also beneficial for shoppers. At this time, it's not possible to add videos of your items.
Sales prices, shipping, and taxes
Sales prices are highlighted alongside the regular price of an item, to showcase the difference to customers. Taxes are already included in the price. Shipping is added at the checkout with the cheapest option highlight on the search page. The extent of the options is entirely dependent on the merchant.
Catch
Summary
Catch prides itself on being the number one Australian retailer for online shopping. It is yet another platform with a wide range of products for sale.
Catch sees itself as a forward thinking platform. Its website is one of the easiest to use on mobile (with an equally efficient app too). In fact, over 70% of the website's orders are currently via a mobile device.
Channel focus
Catch has a range of products for sale, including groceries, clothing, and electronics.
Pricing/Fees
Catch charges sellers 49.99 AUD monthly. It also charges between 10-25% commission depending on the item category.
Ease of use and integration
Difficulty: Easy
To start selling on Catch, you'll need to apply here. There are 3 main criteria you should qualify for:
- being a qualified business
- having a high quality range of products
- align with the marketplace values of Catch.
Once you’re approved you can create your store, have your onboarding with a Marketplace specialist, and start selling.
Loyalty Programmes
Catch has its own loyalty schemes, known as Club Catch and FlyBuys. However, it doesn’t allow you to implement your own loyalty schemes.
Language, currency, and location availability
Catch is only available in English, and in the Australian Dollar. Australia and New Zealand the only locations available.
Platform trust and security
The channel is highly secure and trusted by customers in the Australian continent.
Contact and social media
Catch can be contacted through social media, contact forms and by phone.
Payment options
Catch allows a variety of payment options, including:
- Credit/debit card
- Afterpay (pay in installments)
- PayPal
Returns and cancellations
Shoppers are allowed to return products for store credit or a re-issue of the same product. Returns are able to be made up to 14 days after receiving the item and only if it's still unopened. All the terms and conditions can be found here.
Wish lists
Catch does allow wish lists, so customers can save their favourite products for later.
Is there an app/Is it mobile friendly?
Catch has both an app, and a mobile friendly website.
Review clarity
Reviews are clear and easy to find on Catch. They are included on the initial search page, beneath each rated product.
Images/Videos
Catch has a set of image requirements to ensure that products advertised are shown in the clearest way for consumers. They include:
- Images must be in JPG format
- Minimum image size requirements: 600px x 600px
Videos are currently not supported in the image section.
Sales prices, shipping, and taxes
Taxes are included in the listed price. Shipping costs are stated on the search page. However, many shipping costs stated are for costs if the customer has Club Catch, which could cause additional costs to be added later. Sales prices are listed as ‘save’ plus the amount saved, next to the regular price. Nevertheless, the sales prices on Catch are not the clearest due to the way they are listed.
ASOS Marketplace
Summary
ASOS Marketplace has an increasingly well developed online presence in Australia. The brand mainly focuses on the sale of clothing and footwear, offering their own brand, as well as designer brands, and merchants own brands.
This wide range of products, as well as a well established brand makes it a great place to sell clothing.
Channel focus
The main focus of ASOS marketplace is on selling apparel like clothing, accessories, and footwear.
Pricing/Fees
There is a 20% commission fee taken on each sale you make.
Ease of use and integration
Difficulty: Easy if accepted
ASOS Marketplace is a channel you need to apply for prior to being accepted. They have 2 qualifications that might filter some merchants out: you either need to sell your own designs or have highly curated, vintage pieces. The latter means that your items need to be at least 20 years old.
But if either of those are you it means that you’ll get accepted and receive an account manager of your own. This makes managing your store much easier and keeps the maintenance to a minimum. The benefit of these parameters is that shoppers know they can trust you.
Loyalty Programmes
ASOS tried out a loyalty program called ASOS A-List, but chose not to keep it. At this time they haven't replaced the program with another.
Language, currency, and location availability
ASOS Marketplace is available in various currencies, with the language also being customisable, no matter where you are. However, this is using Google Translator, so it is far from perfect.
The ASOS Marketplace is available in various currencies and languages throughout the world.
Platform trust and security
ASOS is a fully secured platform.
Contact and social media
ASOS is really responsive on social media and you'll get a dedicated account manager once your boutique is approved.
Payment options
ASOS accepts many payment methods like:
- Credit card
- Debit card
- ApplePay
- ClearPay
- Klarna
- PayPal
Returns and cancellations
If a customer needs to return or cancel an order, it's easily done through the website or the app. They just need to log into their account, go the orders section and follow the steps from there.
Wish lists
Rather than a 'wish list', ASOS shoppers can heart items to save for later. It will stay in their 'love' section for 90 days.
Is there an app/Is it mobile friendly?
ASOS provides both a mobile-friendly web page and a mobile app for on-the-go shopping.
Review clarity
Customers are able to share their experiences using the feedback section. Customers will need to take up the initiative though, because it doesn't seem possible for merchants to request reviews.
Images/Videos
Shoppers will be able to get the full picture of your items through images, 360 images, and video. But you will need to make sure they all meet the guidelines.
Sales prices, shipping, and taxes
Sales prices are listed next to the regular price so shoppers can easily see the difference. Taxes are included in the listing price. Shipping is added at checkout, with costs varying depending on the speed of delivery and the collection requested.
MyDeal
Summary
MyDeal is another established Australian marketplace, operating since 2011. MyDeal primarily focuses on lifestyle products, such as furniture and electronics. It states that there are currently over 2000 lifestyle departments within MyDeal. Although, the brand has continued its expansion into other areas of eCommerce too.
Channel focus
MyDeal primarily focuses on lifestyle products.
Pricing/Fees
MyDeal has flexible fees depending on the product category. The platform states that you should contact them directly for a quote on what it may cost to sell on the channel.
Ease of use and integration
Difficulty: Medium
Onboarding with MyDeal is a pretty straightforward process. All you’ll need to do it fill out a quick form and then a representative will reach out to help get things started. If you’re already using an eCommerce platform you can easily connect it with your new MyDeal shop.
Some other requirements to consider are being able to sell your items in AUD and factoring in any conversion costs. Your products should also fall into the Home & Garden category which can range from a wide variety of subcategories like media, clothes, furniture, beauty products and more.
Loyalty Programmes
MyDeal offers its own loyalty scheme, known as shop and earn. Unfortunately, you cannot currently add your own loyalty programme.
Language, currency, and location availability
MyDeal is currently only available in English. It is also only available in Australia, and in the Australian Dollar.
Platform trust and security
MyDeal is a trusted platform. It is highly secure for both buyers and sellers.
Contact and social media
MyDeal offers support through social media, contact forms, and by phone (currently unavailable due to COVID-19).
Payment options
MyDeal currently accepts:
- Credit/Debit cards
- PayPal
- Zip Pay
- Openpay
- Afterpay
Returns and cancellations
Cancellations and returns are managed in the ‘my orders’ section of the website. MyDeal does not guarantee refunds for returns and cancellations. Decisions are made by the merchant themselves, on a case by case basis.
Wish lists
MyDeal allows customers to add their favourite products to a wish list to purchase at a later date.
Is there an app/Is it mobile friendly?
MyDeal offers both a mobile friendly website, and an app.
Review clarity
Reviews are listed below products on the search page, and are easy to find.
Images/Videos
MyDeal currently allows up to 20 images per listing, and no videos. Here are the most important requirements for images:
- Images must be high quality
- Images must be at least 450x450 pixels
- All images must use a white background
- No artificial text are allowed
- No watermarks are allowed
- No logos or icons are allowed
- Don't include any product that is not a part of the listing in the image
Sales prices, shipping, and taxes
Taxes are included in the listed price. Shipping is added at checkout. Sales prices, along with the discounted percentage are listed alongside the original price, to give customers an understanding of the extent of the discount.
Kogan
Summary
Kogan is one of Australia’s largest marketplaces. The platform offers its own brand of products, whilst also offering those of many other merchants. Kogan is a great platform to use for serious sellers in Australia and New Zealand. However, it does not allow one time sellers, or unestablished inconsistent stores.
Channel focus
Kogan is another marketplace with a wide range of products, and no specific focus. It sells anything from electronics, to clothing.
Pricing/Fees
For Kogan's pricing you have to ask for a quote via their application, or support channels.
Ease of use and integration
Difficulty: Hard
Kogan is easy to use for buyers. But for merchants, integrating your store can take some time. This is because you first have to go through an application process. Your brand also needs to be approved in order for your products and brand to be fully visible.
You can upload your products using their seller template. We also recommend following their field guidelines to avoid disapprovals.
Selling on Kogan can get your products in front of a ton of shoppers, but can be geared more towards established businesses rather than smaller ones.
They offer another option if you want to get exposure for your product but aren’t able to fulfil the online orders yourself. If that’s the case, you can apply to be a supplier instead
Loyalty Programmes
Kogan has its own loyalty programme. However, it does not allow merchants to add their own loyalty schemes.
Language, currency, and location availability
Kogan is available in both Australia and New Zealand, with the options of both the Australian and New Zealand Dollar. English is the only available language.
Platform trust and security
Kogan is a trusted and secure platform.
Contact and social media
You can contact Kogan through social media, or through their customer care messaging system.
Payment options
Kogan offers a substantial amount of payment options, including:
- Credit/debit card
- Afterpay
- PayPal
- SplitIt
- AliPay
- Google Pay
- Klarna
- OpenPay
- Citipoints
- Qantas Frequent Flyer Points
Returns and cancellations
Kogan allows 14 days for products to be returned no questions asked. After that, it is the merchants choice whether they accept the returns. Cancellations have to be made prior to the products dispatch.
Wish lists
Kogan does not appear to offer any wish list feature.
Is there an app/Is it mobile friendly?
Kogan offers both a mobile friendly website, and an app.
Review clarity
Reviews are listed on the search results page, directly below the product.
Images/Videos
You can upload up to 8 images using their URL. The first image is required and needs to clearly show the product with a white background. The rest are optional and don't have any specifications other than marketing messages and text not being allowed.
Sales prices, shipping, and taxes
Sales prices are listed as the clearest pricing option, with the original price below in a grey box. Taxes are included in the listed price. Shipping is added at the checkout.
eWorldTrade
Summary
eWorldTrade is a comprehensive online B2B marketplace that brings together buyers and suppliers from around the world. It offers best-in-class services in global trade and a wide range of services to make global trade easier, including access to an extensive network of buyers and suppliers, competitive pricing and promotions, and secure payment options.
Channel focus
The platform focuses on connecting buyers and suppliers from around the world.
Pricing/Fees
eWorldTrade has no fees or charges for its services. It is free to join and use the platform.
Ease of use and integration
Difficulty: Easy
The platform is easy to use and navigate. It offers a comprehensive suite of tools and features to make global trade easier. It also provides integration with third-party services, such as payment processors and shipping providers.
Loyalty Programmes
It does not offer any loyalty programs.
Language, currency, and location availability
eWorldTrade is available in English, Spanish, French, German, Italian, Dutch, Portuguese, Chinese, and Japanese. The platform supports multiple currencies, including US Dollars, Euros, British Pounds, Canadian Dollars, Indian Rupee, and more. It is available in over 200 countries and territories.
Platform trust and security
It provides secure payment processing and a secure platform for buyers and suppliers. It also has a dedicated team of customer support agents to answer any queries.
Contact and social media
eWorldTrade can be contacted via email at support@eworldtrade.com. It also has a presence on Facebook, Twitter, and LinkedIn.
Payment options
It accepts payments via PayPal, Visa, Mastercard, American Express, and bank transfers.
Returns and cancellations
The platform offers a 30-day return policy. Buyers can request a refund within 30 days of purchase.
Wish lists
It does not offer any wish lists.
Is there an app/Is it mobile friendly?
eWorldTrade also has a mobile-friendly app, available on Google Play Store.
Review clarity
It has a comprehensive review system, allowing buyers and suppliers to rate each other's services. Reviews are displayed clearly and prominently on the website.
Final thoughts
As a merchant, choosing from the growing amount of eCommerce channels in Australia can be a challenge. It is important to remember which factors are most important to you, and your business when deciding. However you should also remember you are not restricted to a single channel permanently, or even at once.
Trialing several channels and comparing their features could be the start of getting the most from your online store.
