OK, so anyone who knows me, is aware of the fact that I’m a data nerd, so it might not surprise you that I have recently read the Australia Post – Inside Australian Online Shopping – eCommerce Industry Report 2021 in entirety. Normally I keep this nerdy stuff to myself and share it with my clients when I feel it’s appropriate, but the figures in this report are staggering, and I simply need to share this information with you all.
Can you remember when the World Health Organization called a global pandemic on 11 March 2020? Argh… recalling this makes me feel sick. The world changed from this day on-wards. As businesses were closing their doors, schools were being shut and workers were setting up their home offices, another sector, eCommerce, was unknowingly heading towards an unprecedented amount of demand that has never been seen before…
The shift to online shopping in 2020
As bricks and mortar shops were closing and businesses were scrambling to create an online presence, there was a whole new group of shoppers discovering online shopping for the very first time. The Australia Post reported more than 1.3 million households shopped online for the first time in 2020, and not surprisingly due to what was going on, most shopped for the first time in the month of April. Australia Post tracked the buying behaviours of these newcomers until December 2020, and they discovered that over half of them continued to shop online for at least three of the four months that followed on from April 2020.
Are you starting to see why I’m so excited by these figures? While the pandemic we’re currently living through has turned everything on its head, it has also introduced a new group of shoppers to the online market. And because I’m never one to shy away from new opportunities, this data reveals exciting times for business owners.
In 2019 (remember the good old days?), Aussie’s spent 32.1 billion online, and in 2020 when we were all stuck at home (with our pjs on and drinking cocktails) we spent a whopping $50.46 billion online.
Truth is, out of all the changes we’ve had to learn to live with; social distancing, mask wearing, hand sanitising, online shopping is something we have seamlessly adapted to and probably something that won’t go back to how it was before. Because simply, convenience sells, right?
What inspired the online shopping craze?
Shopping online especially when you can’t leave the house is often more than a transaction. I mean is there anything more satisfying than buying a unicorn pen at 2:30am? For me, there’s nothing better than hitting the ‘Buy it Now’ button and then waiting for the postie to deliver that box. Oh the joy this brings me, but it turns out I’m not alone.
Recently I came across an article by Stephanie Atto who wrote about the research conducted by the Monash Business School’s Australian Consumer and Retail Studies (ACRS) to understand the effect Covid 19 has had on the retail industry, and not surprisingly, their research confirmed people did turn to retail therapy online to find comfort. Their studies revealed that 66% of people reported that they felt better, more in control and normal while shopping online…(But just so you know, the study was looking at non-grocery items. So toilet paper didn’t get a mention.)
Yes people! When we can finally reflect on our pandemic years, many of us will remember it by the hours we spent shopping online, and the joy it gave us. Maybe in five years’ time there will be an explosion of ‘post pandemic’ garage sales.
It’s not all good news though
While small businesses have never had such a large online market to sell their wares to, neither have the big guys. In a poll conducted by industry expert consultant Pattern, revealed that there was a 50% increase from 2019 to 2020 in shoppers who bought online from Amazon.com.au. And seriously what’s there not to love about Amazon Prime? For a flat $6.99 monthly fee, subscribers receive free delivery on domestic items, exclusive hard to beat deals and access to their streaming services.
Sorry if I just interrupted your dream of raking in enough cash from your online sales to finally buy that yacht. But these guys are tough competitors in the game.
While the e-commerce sector is booming, but after 18 months of pandemic life, we can’t ignore the fact the economy is shit. With two of our biggest cities fighting for the title of the most days in lock-down, times are tough for many. Plain and simple, the cash is just not around like it once was.
The Covid 19 domino effect
Cash strapped consumers aren’t our only economic worry. Australia Post has recently been in the media talking about some of their current concerns. If you’re asking, what would they be worrying about? Surely they’re doing alright out of the current e-commerce boom? And yes, yes, they are. In-fact they’ve just reported their busiest month on record. BUT just like every other business the delta strain of Covid 19 has thrown them some massive challenges.
Earlier this month they had to put a temporary three day stop on parcel post collections for eCommerce retailers as 500 of their staff was placed into necessary self-isolation . With the threat of the virus looming around us all Australia Post is faced with the reality of managing large volumes of parcels and times of decreased levels of staff.
Australia Post boss, Rodney Boys has also warned of the eminent shortages of stock. Because the delta strain of Covid 19 continues to play havoc both across Australia and the globe, there is a chance that not everything will arrive in our stores in time for the Christmas rush. “If [the stock is] not just about on the water, it’s probably not going to be here.”
SO! How dark are you feeling now?
There is a way forward, but we need to take action now!
We are now in a time of uncertainty on so many fronts. Consumer confidence shows that the current lock-downs are having an impact on spending, and because of this I need to be real with all you, business owners. As we make our way towards the 2021 Silly Season, we need to get your shit together…and right now!
Of course, as a marketer, ‘optimism’ is my middle name. There is always a way to turn things around. But now is the time to take action. It might seem like the silly season is ages away. But it’s not! The issues currently facing Australia Post, and the way the big players can overtake the market, us small business owners need to get our action plans in place to allow us to take it on and come out the other side.
Here’s our last quarter/pre-Christmas rush to do list:
- Ask yourself, how easy is it for people to spend with my business? Do you have Afterpay and Laybuys available? If you don’t you need to seriously consider them.
- Plan, market, get your offers out and start communications now!
- Support small makers, local businesses when you can (don’t give your money to Jeff Bezos). Remember when you purchase and support small business too, the money (and jobs) stay local and now more than ever do we all need this!!
- Have people buy now, ensuring there is plenty of time to have gifts arrive before Christmas. Don’t chance the system and then open yourself up to over-promising and then the couriers not delivering. Mitigate and eliminate as much risk as possible.
While this article may seem a little alarmist, I’ve never been one to sugar coat shit and for good reason! With some simple planning, communication and structure you can use this though to your advantage, but only if you do something about it now. If you need some support, strategy or assistance give us a hola.. This is kind of what we do and we’re really good at it.
Times will get good again, I’m confident of that, because nothing never really stays the same forever. All hands in and lets smash the last quarter of 2021 #wegotthis !!