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9

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Alexa, Consumerist, Credit Card Selector, Econsultancy, eMarketer, Frost & Sullivan, Google Consumer Barometer, Internet Live Stats, LivePerson, National Australia Bank, Nielsen,Pitney Bowes, PowerRetail, Research and Markets, Roy Morgan Research, Shopify, Social Media Today, yStats.

SOURCES:

1 ECOMMERCE MARKET VALUE & GROWTH POTENTIAL

INTERNETPENETRATION

90%

According to Nielsen, 82% of Australians were online at least once a day in 2013, with an average of 23.3 hours of online digital media engagement weekly. In 2014, Internet Live Stats reported that 90% of Australians had internet access. Australia also has a very active older online population; Google’s Consumer Barometer Report found that the most active online group was aged 25 to 34 years (94%), with those aged 55+ (72%) also online daily.

2 A HIGHLY CONNECTED AUDIENCE

Growth in eCommerce Sales

AUSTRALIANS ARE AVID ONLINE SHOPPERSAustralians are highly connected, with an average of 3.1 devices per person, one of the highest rates worldwide (Google Consumer Barometer). The report also found that 23% of shoppers used their smartphones during their last purchase. Frost & Sullivan reported that mobile commerce accounted for 27% of all online shopping purchases in 2013. The $4.9 billion spent through mobile commerce quickly grew to an estimated AU$6 billion by 2014.

MOBILE'S INFLUENCE ON ECOMMERCE

In 2013, yStats found that over 50% of all online purchases in Australia were cross border. This may be because imported products with a value under AU $1,000 are exempt from customs, duties and taxes. A 2014 Pitney Bowes study also found that 63% of Australians would be happy to shop internationally. This is supported by a 2014 report from Research and Markets that found Australian consumers to be one of the most active buyers from international retailers.

AUSTRALIANS LOVE CROSS BORDER SHOPPING

A 2014 Credit Card Selector study revealed that 58% of participants engaged in showrooming. According to Nielsen, 60% of consumers used a combination of online research and in-store research before deciding to buy in that same year, indicating that showrooming is a widespread and growing trend in Australia.

A SIGNIFICANT SHOWROOMING SCENE

2013 2017

AU $26.77billion

AU $32.56billion

23.3hours

Average timeonline weekly

25 to 34year olds

Most activegroup online

SALE!

58%ENGAGED INSHOWROOMING50%OF ECOMMERCE

IS CROSS BORDER

Average annual spendby 2016

USD $4,500

Australia is one of Asia Pacific’s most highly developed eCommerce markets, offering a substantial market size and a tech-savvy consumer base that is open to online shopping. According to A.T. Kearney’s

2013 Global Retail eCommerce Index, Australia ranks 9th worldwide in terms of eCommerce market attractiveness. The country’s highly efficient logistics infrastructure, alongside high internet penetration

and smartphone usage, allows consumers to shop across a variety of channels, both online andoffline. There are an increasing number of Australians shopping online because of the

convenience and wider product selection that eCommerce offers. In 2014, a Pitney Bowesstudy found cross border trade to be a major proportion of total online sales,

demonstrating the vast opportunity for international eCommerceplayers entering this market.

eCommerce in Australia:10 Key Insights

According to NAB’s Retail Sales Index in 2014, the main contributors to online retail sales were department & variety stores, media and groceries & liquor. Together, this accounted for 74.4% of total increase in online sales from January 2013 to January 2014.

6 WHAT AUSTRALIANS ARE BUYING ONLINE

7 KEY ONLINE RETAILERS 8 CHALLENGES IN DELIVERY AND FULFILMENT

Popular Online Product Categories (2014)

Australia’s social commerce market in 2013 had an estimated value of AU $300 million (Frost & Sullivan). By November 2014, there were 13.6 million Facebook users (57.4% of the population), 4.5 million on Tumblr (19%) and 2.79 million on Twitter (11.8%), highlighting a significant audience size for social commerce.

5 SOCIAL IS SIZEABLE

Top 5 eCommerce Sites (2014)

SALE!

Fashion 11%

Electronic gamesand toys 2%

Daily deals 3%

Personal andrecreational goods 6%

Media(books/movies/music) 12%

Groceries and liquor 15%

Home waresand appliances 17%

Department andvariety stores 34%

12WED

12WED

12WED

12WED

Growth in Mobile Commerce

shopped onlinein 2013

50.3%

spend more time shopping online

than in-store

32%

2013 2014

AU $4.9 billion

AU $6 billionAVERAGE 3.1 MOBILEDEVICES PER PERSON

AU $300 millionSocial Commerce worth

Social Media in Australia (2014)

57.4%

18.99%11.78%

eCommerce in Australia: 10 Key Insights © 2015 Singapore Post Limited. All Rights Reserved.For more information, visit www.specommerce.com/knowledge-centre

In 2013, eMarketer estimated Australia’s eCommerce sales to reach AU $26.77 billion, with projected growth to AU $32.56 billion by 2017. From October 2013 to October 2014, National Australian Bank (NAB) reported that online sales represented 6.8% of total retail spend that year. Frost & Sullivan predicts this percentage will increase even further to 9.8% by 2017. In 2014, Shopify predicted that by 2016, the average Australian online shopper will spend USD $4,500 online.

In 2013, Roy Morgan Research found that 50.3% of Australians shopped online. In the same year, LivePerson's research revealed that 32% of online shoppers spent more time shopping online than in-store. Roy Morgan Research also found that by 2014, 38% of consumers above 14 years were making an online purchase monthly.

In October 2014, the leading retailers were eBay, Gumtree and Amazon, according to Experian Hitwise Australia. Major local brands are also creating online stores and many now feature prominently in Australia's top eCommerce sites. Other popular international eCommerce retailers also include ASOS, Etsy and AliExpress.

Australia

eCommerce in Australia: 10 Key Insights© 2015 Singapore Post Limited. All Rights Reserved.For more information, visit www.specommerce.com/knowledge-centre

Want to learn more about how SingPost eCommerce can support your online business in Australia www.specommerce.com and the Asia Pacific region? Contact biz@specommerce.com

A 2013 PowerRetail survey revealed that only 20% of Australian eCommerce operators offered free shipping for their customers. Despite a strong local logistics infrastructure, 30% of Australian eCommerce operators cited efficient order fulfilment and managing shipping costs as their biggest challenges. With over 50% of online shopping done cross border, there is pressure for local eCommerce players to stay competitive by offering same-day delivery and delivering to multiple locations. Delivery companies such as CouriersPlease, one of Australia’s leading metropolitan parcel delivery businesses and part of the SingPost Group, leverage upon extensive national coverage and low cost networks to serve the growing demand and deliver great customer experience.