As the waves of the COVID-19 pandemic crashed on the global economies, some of them thrived. Why?
Well, economies that had already future-proofed business models to reduce reliance on excessive physical operations and customer service boomed. Think Amazon or Walmart. These are large companies that have substantially major ground operations, but quickly adapted to pandemic protocols, and people’s need to stay home.
While smaller stores closed their doors temporarily or permanently, large enterprises whose business models entailed door-to-door deliveries thrived. Australian businesses in this regard were no exception.
But it has not always been this way — Australia was not considered very lucrative for eCommerce till recently. However, recent market conditions boosted the growth of the industry, which is currently ballooning more than ever before.
Let us now look at a detailed visual overview of how eCommerce in Australia started, is growing, and is likely to expand in the future.
5 Powerful Tips for eCommerce Websites in Australia
Now, you have witnessed how the eCommerce business in Australia has started and transformed over the years. If you are eager to tap into the immense opportunity that the industry is presenting and are wondering “how to start an ecommerce business in Australia”, here are a few powerful tips that you should keep in mind.
#1 Identify Niche Markets
Contrary to popular belief, not every eCommerce brand should aim to be Amazon. At least, not right away.
When you are just starting out, dealing with hundreds, let alone thousands, of SKUs can be quite daunting. Right from inventory to logistics, there are many aspects to chalk out in the process. Instead, focus on a niche that you know you can ace from the get-go.
Explore the market and identify existing gaps in demand and supply of products. Now, narrow down ways in which you can address this gap. Ask yourself — what products can you sell that can immediately position you as a niche brand?
Say you are, or know, of someone who is great at hand-painting shoes and clothes. You know that while there are plenty of apparel and footwear brands, there are a few to none that sell hand-painted ones. Explore your opportunities in this segment and start an eCommerce website in Australia that will immediately set you apart from the existing ones.
#2 Implement Proper Financial Control
Financial control is an important consideration for eCommerce companies — regardless of their scale of operations. However, for budding entrepreneurs dabbling in the industry for the first time, even getting small business loans from Australian banks can be equally difficult.
If you have suppliers overseas, it is also crucial to keep a check on the currency rate fluctuations. Locking down the prices in AUD would be a good practice, as it would grant you immunity from volatility.
Moreover, try to keep your eCommerce business as self-funded as possible. As you grow and scale-up, redirect your revenues back into your operations. Doing so will help you maintain stability and have better control over your finances.
#3 Prepare Futuristically and Overcome Challenges
One of the biggest lessons from the COVID-19 pandemic?
Improvise. Adapt. Overcome.
At the risk of quoting a corny movie dialogue, this is truly the mantra that helped several businesses overcome the unprecedented effects of the pandemic. The stay-at-home orders hampered many brands that relied on physical locations. Add to that, the persisting ecommerce challenges in Australia stemming from the nascency of the market.
Nevertheless, the ones that quickly adapted, or had future-proofed, managed to battle it out unscathed. Some of them even thrived.
That said, it is important for eCommerce companies in Australia to create contingency plans right from the start. Remember — no matter how solid your strategy is, you are bound to run into challenges that may hamper your performance.
For such unexpected hurdles, be prepared to think on your feet and come up with smart solutions that will benefit your business in the long run.
#4 Leverage the Power of Social Media
One of the most powerful tools that brands often take for granted is social media. You may have heard this before — but it is true all the way.
Regardless of which stage your business is in, it is important to be present where your target audience is. Online retail businesses have a lot to gain by leveraging social media and staying in constant touch with people.
Social media can help eCommerce companies in Australia in more ways than one. Brands can increase their organic search rankings, their brand awareness, recognition, and loyalty significantly. Not just this, social media influencers today help eCommerce brands attain new customers and successfully retain them.
Social media channels also provide the perfect platform for eCommerce companies to interact with their customers and understand their needs.
#5 Start Local
One of the biggest mistakes that eCommerce platforms in Australia that are just starting out make, is wanting to start big from the get-go. This approach has surely helped a lot of brands launch businesses worth millions, but this may not apply to all.
The more prudent approach towards this would be starting small and scaling operations as your business grows. So, instead of targeting an international customer base right from the launch, start local and patiently build a powerful network of customers in your vicinity. Doing this also allows you to experiment with new strategies for a limited audience and chart out your service quality.
With the growing interest and popularity of eCommerce in Australia, you can build a successful home-bred eCommerce business before expanding your operations globally.
The eCommerce industry in Australia might have had a slow start, but today it is steadily growing into one of the most successful eCommerce markets across the globe. As you can see in this detailed infographic, Australia offers a lot of lucrative opportunities for budding as well as established eCommerce businesses.
It is a great time to start and grow your online retail business. If you are able to support it with the right strategies, you could be running a highly profitable enterprise.