Foreign Brands Entering the Australian E-Commerce Market: Here’s What You Need To Know

Particularly with brands in the UK, North America, and other English-speaking nations, there is a lot of confidence that entering Aussie markets will be a breeze.

Of course, Australia is similar to places like the UK and North America in a lot of ways. Language is the same, many of the same cultural touchstones and norms exist, and populations may even look similar.

Australia is the world’s 11th-largest e-commerce market, and there’s plenty of room for growth. 

However, when it comes to DTC shipping, the land down under is a very different world.

 If you are entering the Australian market as a foreigner, you need to go into it well-armed with knowledge of consumer preferences and fulfillment logistics. 

To get you started, we’ve compiled a list of must-know factors about the consumers, marketplace, logistics environment, and legal background. Read on to get going on your Australian expansion journey!

Aussie-preferred platforms & payment methods

As of April 2024, Amazon’s sales accounted for 10 percent of total e-commerce sales in Australia. Amazon is not the only platform that Australian shoppers flock to.

 In order to capture more sales in the Australian market, it’s a smart idea to list your products on the platforms that Aussies use to shop!

 Some of the most popular e-commerce marketplaces in the nation include:

• Amazon Australia
• Gumtree
• Catch.com.au

When it comes to online payments, the bar is set high with Australian shoppers. Credit  and debit cards are still a popular method of payment, making up around 75% of online purchase payments last year, but various other options have become popular, including:

• Digital wallets like Apple & Google pay
• Klarna and Afterpay for Buy Now Pay Later
• POLi payments (bank transfer used with many Australian banks)

Country logistics info

The large size and dispersed population in Australia have historically made logistics and fulfillment in the country a challenge. Things have improved in recent years, but there are still some country-specific points you will want to know before you go to set up fulfillment operations in Australia.

Expect longer lead times

Depending on where you are used to operating, you may have to adjust your expectations when it comes to delivery speeds down under. 

Like anywhere, shipping times differ based on the carrier, distance, and weight. For instance, Australia Post (Auspost) standard shipping can ship a package in 1-2 days in the same state, but cross-country might take as long as 11 business days.

Other carrier options for domestic shipping are:

• Sendle
• Aramex (Previously known as Fastway)
• CouriersPlease (a subsidiary of Singapore Post)
• Parcel point (also does pickup and return locations)

It’s important that you don’t make promises you can’t keep to your Australian customers, so remember to adjust estimates and shipping options on your site accordingly.

Related: A Quick Guide to Finding Australian 3PL Services

Choose fulfillment locations strategically

Like any large country, you have to think strategically about where you want your fulfillment center to be. You can choose to spread inventory between various locations to cut down shipping times or choose something located in the middle of most of your customer base.

Typically, the following areas are the chosen spots for fulfillment centers:

• Sydney
• Melbourne
• Brisbane
• Perth

The most important thing you can do is choose the right fulfillment partner. This isn’t always easy for foreign brands, so we made a guide to finding the right 3PL in Australia. 

Want to kickstart fulfillment in Australia? Choose a global 4PL like CBIP

As a company led by two Kiwis working in logistics in Hong Kong for the past decade, we are well-schooled in Australian logistics.

If finding a 3PL on your own is a bit out of your depth, don’t worry: That’s exactly what we’re best at.

At CBIP, we work with an extensive network of providers all over the world, including our trusted local partners in Australia. When you work with us, no matter where your brand is based, we can get you set up with logistics providers in Australia…or another market in a totally different country!

The best part? We have built our own logistics platform that integrates each one of those providers into one control tower. That means that all the data from your Australian market, and all the data from your logistics providers in the UK, you get in one convenient spot.

Interested in learning more about how CBIP Logistics can get your brand selling all over the world? Contact us to set up a free logistics consultation today.