Australia’s Cross-Border E-Commerce Market 2024: Trends, Growth, and Challenges

“Thinking about launching your cross-border e-commerce business in Australia but unsure about the current landscape?”

This article provides B2B marketers and international sellers with a clear breakdown of:

If you’re exploring new opportunities and considering business expansion into Australia, this must-read guide will help you evaluate market potential and plan your entry with confidence.

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Australia Market Overview: Key Facts

Before diving into cross-border e-commerce opportunities, it’s essential to understand the fundamentals of the Australian market.

Reference: MOFA

According to Worldometer, Australia currently ranks 55th in global population size. Over the past three years, the country’s population has grown at a steady rate of approximately 1% annually.

In contrast, Japan’s population has been declining by about 0.50% per year during the same period.

This trend highlights Australia’s demographic advantage and suggests that, from a long-term business perspective, the country presents greater growth potential than Japan.

Reference: Worldometers / Worldometers

Australia’s Cross-Border E-Commerce Market in 2024

According to Statista, Australia’s e-commerce market is experiencing rapid growth and is projected to reach USD 37.1 billion (approximately JPY 5.83 trillion as of June 2024).

The market is expanding at a compound annual growth rate (CAGR) of 9.36%, with forecasts estimating it will reach USD 58.03 billion (JPY 9.13 trillion) by 2029. This growth rate is comparable to Japan’s e-commerce CAGR of 9.23%.

In terms of user base, the number of e-commerce users in Australia is expected to reach 23.1 million by 2029, with a penetration rate rising from 65.3% in 2024 to 84.4% in 2029.

Data from DataReportal indicates that fashion, electronics, and groceries are currently the top-performing product categories. However, as internet and digital adoption continues to grow, demand in other e-commerce sectors is expected to rise significantly.

Consumer Behavior and Preferences in Australia

According to LOCAD, Australian consumers aged 30 to 39 are the most active demographic in online shopping. They tend to conduct detailed research and price comparisons before making a purchase decision.

E-commerce growth is particularly strong in regions like New South Wales and the capital, Canberra.

Consumers with higher socioeconomic status also show a stronger preference for premium product categories and higher-priced items.

In terms of gender, both men and women are active participants in online shopping. Women are generally more engaged in social media-driven shopping, while men tend to spend more time browsing and shopping directly on e-commerce platforms.

Key Drivers of Brand Awareness and Purchase Decisions Among Australian Consumers

According to recent data, the top factors influencing brand awareness among Australian consumers include search engine optimization (SEO), word-of-mouth referrals, TV advertising, and social media ads.

These touchpoints play a critical role in the customer journey — guiding buyers from discovery to purchase — making them essential components of any effective marketing strategy targeting the Australian market.

If you’re planning to implement digital marketing over the medium to long term, optimizing product pages and publishing SEO-driven content (such as blog articles) combined with organic word-of-mouth via social media will be highly effective.

For short-term campaigns, paid social media advertising can deliver faster results and broader reach.

In terms of purchase-driving factors, the top three incentives for Australian consumers are:

1. Free shipping

2. Discounts and coupons

3. Hassle-free return policies

Addressing these factors in your e-commerce strategy can significantly increase conversion rates in the Australian market.

Australian Consumers Are Highly Responsive to Discounts and Sale Events

Australian shoppers are particularly sensitive to special offers and discounts. Consumer purchase intent tends to peak during major promotional events such as Black Friday, making these periods ideal for launching targeted campaigns or seasonal promotions.

Import Regulations and Taxation in Australia

Australia enforces strict import regulations on items that may pose a public health risk or introduce pests and diseases. According to PrivacyShield, import restrictions commonly apply to food products, plants and animals, and protected wildlife.

However, import rules may vary by state, so it is essential to consult local marketing experts or compliance professionals to ensure up-to-date and region-specific guidance.

On the taxation side, Australia imposes a Goods and Services Tax (GST) at a flat rate of 10%. Since 2018, GST also applies to low-value imported goods under AUD 1,000, meaning that overseas e-commerce sellers must collect and remit GST, just like local Australian businesses. Proper pricing strategies and accounting processes must account for this obligation.

Most Popular Payment Methods in Australia

With the rapid adoption of digital payments, cash usage in Australia has declined to around just 1%.

The most commonly used payment methods are:

• Debit & credit cards: 41.0%

• Digital & mobile wallets (e.g., Apple Pay, Google Pay, PayPal): 31.0%

• Bank transfers: 10.0%

To ensure a smooth checkout experience and higher conversion rates, e-commerce businesses entering the Australian market should offer these popular payment options by default.

In Japan, digital and mobile wallets account for 12.3% of payment methods, while debit and credit cards make up a significant 64.2%, and cash usage still holds at 8.4%.

This contrasts with Australia, where digital wallets and cards are more evenly distributed and cash usage has declined to around 1%, indicating a more accelerated shift toward cashless transactions.

Compared to Japan, Australia sees more than twice the usage of digital and mobile wallets.

Therefore, if your e-commerce site does not support digital and mobile wallet payments, it may significantly reduce the purchase conversion rate among Australian consumers.

Top 2 Cross-Border E-Commerce Platforms in Australia

Based on data from Statista, here are two of the most popular cross-border e-commerce platforms in Australia.

The platforms introduced in this article are marketplace-style e-commerce sites, not standalone brand-owned EC stores.

By leveraging these marketplace platforms, businesses can not only gain early brand visibility but also benefit from streamlined logistics and customer service management — allowing them to focus on product quality and business growth.

1. Amazon.com.au

Amazon launched its operations in Australia in 2017 and is widely recognized for its global brand power and extensive range of product categories.

Amazon is particularly well-suited for B2C brands, especially in highly competitive, price-sensitive categories.

With the Fulfilled by Amazon (FBA) service, sellers can outsource inventory storage and shipping to Amazon, making it an attractive, low-risk option for new entrants and small businesses.

From a marketing perspective, Amazon’s ability to analyze customer behavior and deliver personalized product recommendations also helps improve cross-selling performance.

2. THE ICONIC

   
   

THE ICONIC is a leading marketplace-style e-commerce platform in Australia, specializing in fashion and lifestyle products.

Renowned for its fast shipping options, it is especially popular among younger, fashion-conscious consumers.

In addition to Australia, THE ICONIC enjoys strong brand recognition in New Zealand, offering trend-driven apparel to local shoppers.

From a marketing perspective, THE ICONIC heavily leverages digital marketing and social media — particularly active on Instagram and Facebook.

This strategy helps boost brand awareness and strengthen engagement with its target audience.

They also run frequent seasonal campaigns and promotions to capture and retain customer interest effectively.

Key Considerations for Cross-Border E-Commerce in Australia

According to a 2021 JETRO report, immigrants accounted for 51.5% of Australia’s total population, surpassing the indigenous population at 48.5%.

With a growing demographic of Nepalese, Indian, Pakistani, Iraqi, and Filipino communities, it’s essential to tailor your marketing strategies with cultural and linguistic sensitivity in mind.

Additionally, businesses must carefully plan their logistics strategy, particularly regarding shipping costs and delivery options.

Due to Australia’s vast land area — significantly larger than Japan — shipping to remote regions can be far more expensive than expected.

Since factors like immigration demographics and delivery costs are subject to change, we recommend working with local native marketers to conduct up-to-date market research and build a cost-effective logistics plan.

Frequently Asked Questions (FAQ)

Below are answers to some of the most common questions regarding launching and managing cross-border e-commerce in Australia.

TheDigitalX Supports Cross-Border E-Commerce Strategy and Operations in Australia

If you’re unsure about how to approach your cross-border e-commerce strategy or operations in Australia, The Digital X is here to help.

Our team of native Australian marketers and Japanese e-commerce specialists will work closely with you to develop tailored strategies and ensure smooth execution.

Whether you’re facing specific concerns or just exploring opportunities, we’re ready to listen and assist.

Feel free to reach out via our contact form — we look forward to hearing from you.