Australia’s Ecommerce Landscape: A Unique Challenge
Australia’s unusual geography and population distribution have long made it something of an outlier when it comes to ecommerce. In a small and densely populated country like Denmark, online shopping is relatively easy – you can more or less throw a parcel from your warehouse door and expect the recipient to catch it – but on our vast continent, the huge distances between major cities have made logistics and delivery both slower and more expensive, cutting into profit margins.
As a result, online shopping has often lagged behind in Australia even as it became a norm in similar economies around the world.
COVID-19: A Tipping Point for Ecommerce
You can tell something is a real issue when even Forbes writers comment on it:
“As an Australian living abroad, this phenomenon surprised me every time I returned home and attempted to make purchases online: Options were limited, pricing wasn’t competitive, and I’d often have to—gasp!—pay for shipping.”
Commentators have long predicted e-commerce would become a much larger part of the economy, but customer behaviour has stubbornly lagged behind.
However, in this, as in so many other things, coronavirus has proved a great leveller. Simple necessity has driven a huge boom in online shopping. Australia Post saw an 80% increase in online shopping over the eight weeks to May 15, compared to the year prior.
Brands Seeing the Shift
Accent Group, the footwear giant behind Sketchers and The Athlete’s Foot, saw digital sales explode from $250,000 a day in early March to $1.1 million a day by late April. Now, 45% of the company’s sales are online—and it predicts that even post-pandemic, this will settle around 30%. As a result, it’s considering permanently closing some physical stores.
A Golden Opportunity for Australian Entrepreneurs
All of this is a huge opportunity.
If you’ve been sitting on a brilliant idea for an online business, now is the time to launch. If your existing business hasn’t prioritised ecommerce, it’s time to shift gears.
Chris Hales of Bare Blends reports massive growth through Amazon:
“We suspect this will be the greatest push towards e-commerce the market has ever seen… People of all ages are now relying on online shopping and deliveries which will forge habits for the future.”
Where Should You Start? Probably eBay
eBay remains a giant in Australia. While Amazon has outpaced eBay globally, here it’s a different story. Despite predictions to the contrary, eBay has held strong since Amazon’s Australian launch.
According to disfold, eBay.com.au receives nearly 70 million monthly visits, far outpacing Amazon.com.au’s 22.5 million. It’s backed by 40,000 active businesses and offers strong international reach.
While it still supports auctions, eBay now focuses heavily on “buy it now” options, offering a more traditional online retail experience.
Amazon Australia: Long-Term Potential
Entrepreneurs looking to future-proof their business should also consider Amazon Australia. Its market share might trail behind eBay now, but globally dominant infrastructure and tools like Fulfilment by Amazon make it incredibly compelling—especially for logistics-heavy businesses.
Linnworks even names it the number one international marketplace for online sellers.
Local Contenders to Watch
Catch
Catch.com.au launched in 2017 and quickly gained traction with flash sales and daily deals. Now owned by Westfarmers, it complements Target and Kmart, pulling in nearly 9 million visitors a month. It’s a strong choice for price-conscious consumers.
MyDeal
Founded in 2012, MyDeal focuses on larger items like furniture and mattresses. With over 1,000 sellers and 500,000 buyers, it’s a serious player—especially if you sell bulky products.
Despite growing competition, MyDeal still offers strong support for small businesses, including storefront management and business loans.
Honourable Mentions
This list isn’t exhaustive. Platforms like Kogan and Fishpond also deserve consideration. But it’s the variety and competitiveness of these marketplaces that makes now the perfect time to launch or expand an ecommerce business in Australia.
Final Thoughts
Thanks to a mix of geography, global pandemics, and changing buyer habits, the ecommerce landscape in Australia has finally matured. If you’ve ever thought about diving into online marketplaces, now is the time.