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Australian e-commerce market reaches 21.4 billion USD

In frame of their research on the country’s shopping habits, Australia Post found that the Australian e-commerce market grew to reach 21.4 billion USD last year. This is a 18.7% increase over 2016, outstripping physical retail by 16.2%.

The changing online landscape is likely pushing the average order value (AOV) down as more shoppers are looking online for everyday items.

By 2020, one in 10 items will be bought online in Australia, the report estimates. Australians are buying online more frequently, but spending slightly less per purchase. The increase in number of online orders was particularly pronounced. Purchases were up 19.2% in 2017, compared to 11.5% rise in 2016.

Amazon’s entry in Australia, late last year, was not a factor in this report. However, it can be expected that Amazon will pressure on the market AOV, as it has done in many other countries.

Buy Now, Pay Later (BNPL) is gaining popularity amongst Australian consumers, especially to the 18-39 years old demographic. 7.7% of the total spent for goods online was paid for using this method, according to the report.

Following the global tendency, marketplaces are booming in Australia, growing by 74.8% in 2017. Well-established domains include eBay, Etsy, and Redbubble.