eCommerce in Australia and New Zealand

by Daniella DeLea

Australia and New Zealand have undoubtedly ruled the eCommerce market in the South Pacific.  Their explosive growth in 2020 was accelerated by the pandemic and allowed for a shift in online retail adoption.  Australia spent over $50.46 billion AU online in 2020.  Online buying made up 16.3% of all retail spending.  Australia and New Zealand are both attractive locations for online sellers. Since the native language is English, less localization has to be done prior to selling a product.  Moreover, shipping speeds are comparable to locations in Europe. Due to their location and small product variety, shoppers are interested in purchasing products from abroad.  

The USA has traded $10.8 billion worth in goods with New Zealand in 2020, with $5.0 billion of these in exports.  The top export categories to New Zealand B2B. are aircraft, machinery, and other vehicles.  The US also exports agricultural products (such as dairy) and pet food.  Service exports such as financial services, telecommunications and computer and IT were also popular.  Australia and the USA have a close and good relationship.  This has fostered increased trade between the two countries and has made it as a top 20 export market.  

Unlike other markets Amazon is second! The most popular site for sales is eBay.  Coming behind the top two is TradeMe and  TradeMe is so popular in New Zealand it is one of the most frequently visited websites in the country.  90% of Australian Companies export on eBay.  Other popular sites include Gumtree and MyDeal.  When exporting to countries such as Australia, consider the local cultural diversity and how to place and use ads.  Diverse marketing campaigns can assist with your overall product strategy (such as in Australia where there are many people from neighboring southeast Asian and Asian countries). As both of these market shares continue to grow, it is a great time to consider expanding to the South Pacific.