The popularity of online marketplaces is booming in Australia. Third-party sellers of all kinds are flocking to these platforms, as they provide an opportunity to vastly increase their exposure and reach, while also reducing shipping costs and accessing data-driven customer insights.
From July 2018, Australia began applying a goods and services tax (GST) of 10% on all imported goods. Previously, imported goods worth less than AUD1,000 were exempt from GST.
While convenience, wider choices and competitive prices are major attractions of online shopping for Australians, the risk of online fraud is a growing concern. As traditional forms of card-based fraud become more difficult due to improvements in chip and PIN technology, criminals are developing more sophisticated online methods.
Since entering Australia in late 2017, Amazon has continuously expanded its offer of everyday grocery products, including non-perishable foods. It now directly challenges Woolworths and Coles by offering such items at the same or substantially lower prices, and in many cases adjusts its prices within a day of corresponding moves by the two supermarkets chains.
Leading home and garden specialist retailers chain Bunnings began offering its full product assortment online in early 2019. The online platform, which includes a click and collect facility and home delivery, has been trialled at one of its stores in Melbourne, and is due to be rolled out across Australia early in the forecast period.
Local pure play internet retailer Catch Group, which trades as Catch of The Day, continued to post strong results in 2018. Its performance was bolstered by the expansion of its online marketplace, which was launched in mid-2017.
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