Australia’s e-commerce market has been witnessing high growth during the past few years, supported by growing Internet penetration, availability of secure online payment systems as well an increasing number of online shoppers. The COVID-19 pandemic has further accelerated the shift from offline to online sales and subsequently the market is expected to reach A$91.5bn (US$70bn) in 2025, says GlobalData, a leading data, and analytics company.
According to GlobalData’s E-Commerce Analytics, e-commerce sales in Australia, which grew by 16.8% in 2020, are estimated to grow by 13.4% to reach A$60.6bn (US$46.7bn) in 2021.
While sectors such as travel and accommodation were affected due to the lockdown and travel restrictions, strong growth was seen in online purchases of retail goods such as groceries and electronics.
Shivani Gupta, Banking and Payments Senior Analyst at GlobalData, comments: “The pandemic accelerated e-commerce activities in the country as wary consumers are staying home to avoid exposing themselves to disease vectors. This trend will continue driven by rise in new online shoppers.”
As Australian consumers continue to embrace online shopping, it will support the growth of electronic payments. According to GlobalData’s 2021 Financial Services Consumer Survey* for online purchases, payment cards account for 37.2% of all the e-commerce sales in Australia. Alternative payment solutions such as PayPal, POLi, Afterpay, and Apple Pay collectively account for 43.3%.
‘Buy now, pay later’ is a popular payment option among Australians, particularly millennials. According to GlobalData survey, Afterpay accounts for 7.7% of total e-commerce payments in 2021.
Ms Shivani concludes: “The pandemic has brought a permanent shift in consumer buying behavior from in-store to online shopping, which has accelerated digital payments adoption and benefiting alternative payment solutions.”
- Quotes are provided by Shivani Gupta, Banking and Payments Senior Analyst at GlobalData
- Information is based on GlobalData’s E-Commerce Analytics.
- *GlobalData’s 2021 Financial Services Consumer Survey was carried out in Q1 and Q2 2021. Over 52,742 respondents aged 18+ were surveyed across 42 countries.
- This press release was written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts
4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology, and professional services sectors.
This article was sourced from a media release sent by GlobalData