According to the 2024 Australia Post Ecommerce Industry Report, over 9.5 million Australian households shopped online in 2023, spending $63.6 billion with an average basket size of $98.10.
Thanks to changing consumer attitudes about buying over the internet, online shopping has become a way of life for Australians. New and emerging ecommerce businesses have tremendous growth opportunities, as online retail is here to stay. In this article we’ll look at how ecommerce has affected traditional retail in Australia, and some trending ecommerce online ideas for you to start an ecommerce business.
Are ecommerce businesses disrupting high-street retail?
Online shopping is now an increasingly significant contributor to retail spending in Australia. Research from Roy Morgan indicates that more than 2 million Australians buy from online retailers, notably Shein and Temu, which are known for selling fashion, home decor, electronics, craft supplies and power tools at dramatically low prices.
Temu, launched in Australia in March 2023, has become the most downloaded app in the App Store and Google Play, making it the fastest-growing online marketplace in Australia.
While Temu offers ultra-cheap items, some for as little as 89 cents, according to Roy Morgan's research, those shopping on Temu and Shein were not just 'budget-conscious bargain seekers' but included young parents, large households and retired Australians.
Roy Morgan's chief executive, Michele Levine, remarked: "We're seeing people who are quite capable of and are shopping at David Jones, also shop at Temu and Shein." David Jones shoppers were also twice as likely to buy from Temu and three times more likely to shop at Shein than the average Australian.
Paul Zahra from the Australian Retailers Association says he's surprised by the meteoric rise of these discount marketplaces. "Every retailer will be affected by the success of Temu and Shein. It doesn't matter whether you are a luxury department store or a discount department store, but the closer you are to the lower prices, you'll be at greater risk."
The aggressive growth of ecommerce businesses has significantly impacted the retail landscape in Australia and will continue to shape how retail enterprises are run in the years to come. This ecommerce boom points to extraordinary opportunities for new and established online brands.
With this in mind, let's look at different types of digital and ecommerce businesses, online business ideas and emerging ecommerce trends you can leverage to buy or start an ecommerce business.
Trending ecommerce business ideas Australia 2024
Print on Demand
Print-on-demand is an ecommerce business model where designs are digitally printed on demand on products like apparel, merchandise, accessories, home decor, etc. It's a great online business idea if you do not want to stock inventory.
To get started, you need to:
- Set up an ecommerce store or create an online store on marketplaces like Etsy or Amazon.
- Connect your online store to a print-on-demand provider like Printify, Gelato, etc. These PoD services offer a wide range of products that can be customised.
- Create custom designs, add them to products of your choice and list them online.
Once you have a sale, the entire order fulfilment, from printing to shipping, is handled by the PoD service.
Dropshipping business
Dropshipping is an ecommerce business model where the seller is not required to stock inventory. Your dropship supplier stocks your products and ships them when you get an order.
The benefits of dropshipping as an ecommerce business idea are low start-up costs, easy scalability and the freedom to test new products without risk.
Books, coffee and home decor are some of the most popular products to dropship.
Apps
With over 6.3 billion smartphone users globally, it is no surprise that the mobile app market is booming! Mobile apps are expected to generate over $935 billion in revenue in 2024. There is an app for almost everything and every industry today.
If you want to start an online business, you could consider buying a pre-built app in a niche you are passionate about. App developers sell their apps for several reasons, the most common being project fatigue and the desire to innovate.
Once you buy an app, you can invest in marketing it and eventually build the user base and a steady revenue stream by offering in-app purchases, premium features, or a freemium version.
Amazon FBA Store
Fulfilled by Amazon (FBA) is an all-in-one ecommerce business solution offered by Amazon. As a seller, you only need to ship your products to Amazon Fulfilment Centers. They will store, pack, ship, and deliver your product when a customer finalises an order on your Amazon store.
The benefits of an FBA ecommerce business model are:
- Fast and low-cost shipping
- No stress about renting a warehouse or storage space
- Excellent customer service offered by Amazon
- The Amazon team expertly manages returns and refunds
Amazon FBM Store
Fulfilled by Merchant (FBM), as the name suggests, is an order fulfilment method where you, the merchant, are responsible for stocking inventory and shipping the orders, either yourself or by partnering with a third-party logistics provider.
If you are a new merchant selling on Amazon, FBM will probably be the only method available, as FBA approvals take time.
Amazon KDP
Kindle Direct Publishing (KDP) is Amazon's ebook publishing platform. This is a great online business idea for passionate and budding writers. If you love to write, you can self-publish your ebooks on Amazon for free. Kindle readers can download your ebook, or Amazon also offers a print-on-demand service where they print a paperback and ship it to your customer.
BigCommerce Store
Founded in 2009, BigCommerce has become the first choice of many top retailers like Superdry Australia, Skullcandy, La Perla and more. While this fully hosted ecommerce platform is preferred by major brands, they also offer solutions aimed at smaller ecommerce businesses, providing flexibility, scalability and security at affordable price plans.
Shopify Store
Shopify completely changed the ecommerce game and made it accessible for anyone to start an ecommerce business. Shopify's ecommerce platform, featuring a user-friendly drag-and-drop interface, is one of the most convenient platforms for creating a store and launching an online business.
Gymshark, one of the fastest-growing ecommerce companies in the UK, was started in a small garage in Birmingham in 2012. Today it sells in more than 230 countries via 14 online stores built on Shopify.
SaaS Platform
Purchasing an existing SaaS platform allows you to skip the start-up hiccups and procure a business in its growth stage with an established customer base, brand value and revenue stream.
Still undecided? Here are some SaaS businesses for sale on our platform.
Content Websites
A content website is a site that is a library of content built around a particular topic, sometimes referred to as a blog, niche site or an authority website. The goal of a content website is to create high-value content that attracts tons of traffic and then monetise that traffic.
Tim Burton, popularly known as Shmee, turned his passion for cars into a successful blog where he tests and reviews supercars. Capitalising on his brand Shmee150, he launched his merchandise line of branded clothing, accessories, and car-related products, offering him an additional revenue stream.
Conclusion
Driven by rapid changes in technology and globalisation, the ecommerce industry is poised for robust growth. Predicted to achieve an annual growth rate (CAGR 2024-2029) of 9.36%, with user penetration expected to reach 84.4% by 2029, the opportunities are substantial.
These compelling statistics make 2024 an ideal time to start or buy an ecommerce business. If you’re interested in the latter, read our Guide to Buying an Online Business for more detailed information.
Ecommerce FAQs
Which are the top ecommerce companies in the world?
Amazon, with a revenue of $574.785 billion in 2023, is by far the largest ecommerce company in the world. Walmart, Home Depot and Ali Baba are some of the top ecommerce businesses globally.
Which is the most popular ecommerce business in Australia?
Clothing and shoes at 47% and 30% respectively, are the most popular ecommerce businesses in Australia.
What is the best ecommerce business to start in 2024?
Electronics, fashion and food are the top three ecommerce product categories in the world. If you want to start an ecommerce business, there is huge growth potential in any of these 3 categories.