The Aussie eCommerce market is a tempting entry point for British bands looking to expand across borders. With an online retail sector worth over $46 billion and millions of customers au fait with UK products and culture, few markets can rival Australia's size and consumer attitudes.
But, if you want to enter the Australian eCommerce market, you need to know what the average Aussie wants regarding parcel delivery — and how to deliver it.
This article will tell you everything you need to know. You’ll learn about the wide range of delivery options available, the options Aussies like best, and their attitudes to shipping fees and returns.
An overview of the Australian eCommerce market
Australia may only have the 55th largest population, but it’s the 11th biggest eCommerce market — predicted to exceed $46 billion by the end of 2024. Popular product categories include consumer electronics, fashion, homeware, grocery and hobby & leisure.
The eCommerce market is growing fast, too. Revenue levels are expected to grow at a compound annual growth rate of 8.7%, meaning the market will be worth $64 billion by 2028.
That’s because more Australians are shopping online than ever before. As many as eight in 10 households made a purchase in 2023. They buy often, too, with one in seven households making weekly purchases.
What methods of delivery do Aussies prefer?
Australians care about the range of delivery options available at checkout, with over 90% saying a lack of adequate options will influence whether or not they abandon their cart.
So, which options do they prefer?
Standard home delivery
Standard home delivery is the most popular delivery method for online shoppers in Australia, selected by 67% of respondents in a 2023 survey.
PUDO
Pick-Up and Drop-Off (PuDo) is an increasingly common delivery choice, with 73% of shoppers saying they want to collect a parcel from a location near their home.
There are several options for carriers and retailers:
- Parcel collection point Hubbed has over 2800 convenient locations in petrol stations and retail stores.
- Australia Post has over 700 Parcel Locker locations nationwide, at places like train and petrol stations.
After-hours options are important, with over half (54%) of shoppers saying they prefer to collect parcels after weekday work and 19% saying they prefer weekends.
Express
Australian consumers care about getting their parcels fast. Research by ChannelAdvisor finds that 73% of consumers prioritise delivery options of two days or fewer. Gen Z, in particular, demands express delivery, with 67% saying they’d swap retailers for faster shipping.
Same-day delivery options are also becoming more common for big brands. Amazon offers free same-day delivery to Prime customers for orders over $49 and charges $12.99 to non-Prime customers who wish to pay for the service.
Sustainable Delivery
Millennials and Gen Z care about shopping from sustainable brands, with 93% of Gen Z and 82% of millennials saying they prefer to shop with brands that align with their sustainable values.
That includes shipping, with 56% of online shoppers saying they would choose to receive packages later if it reduced the environmental impact of delivery.
Which carriers can you use to deliver your packages
There are several carriers you use to ship to Australia. These include:
- Australia Post: one of the leading carriers used by 87.8% of all online retailers
- DAI Post: an Australian courier that specialises in eCommerce and wholesale international delivery
- DHL Express: An international delivery service that handles millions of parcels each year
Australian Delivery Costs and Expectations
Australian consumers have high expectations regarding delivery and will punish brands that fail to deliver. Over 80% of consumers say they’re unlikely to shop with a brand again following a bad experience.
You’ll need to think carefully when it comes to shipping costs. While the majority of Australian consumers are happy to pay for express delivery, 71% say high shipping costs are the biggest barrier to becoming a repeat customer.
Providing exceptional parcel tracking options is also important. Research by SOTI finds that 72% of Aussies expect to know where their order is at all times.
A smooth returns service is also key. Offering a free returns service could be essential, with a majority (54%) of consumers saying it’s unfair to charge for returns. In fact, only two-thirds of consumers say they’re only willing to buy from websites that offer free returns.
How to Ship to Australia with Pro Carrier
If you’re looking to enter the Australian eCommerce market with a range of consumer-friendly delivery options, the team at Pro Carrier are here to help. Our carrier-agnostic approach helps leading brands ship from the UK to Australia without needing a presence in the country. We offer seamless integration with every major eCommerce platform and a world-class tracking solution for you and your customers that includes a minimum of six shipping updates.
Find out how we can help your brand expand down under by speaking with an expert today.