Your Guide to Australian E-Commerce

05/03/2020

Marketplaces By Amelia Erskine

We get lots of questions from British and European sellers asking us about the opportunity to expand internationally into the Australian market and in particular, best practices for selling on one of Australia’s leading marketplaces: Catch. That’s why we were thrilled to welcome Talia Lederman, Partnerships & Category Manager at Catch to give you the low down on selling down under.

In this blog we’ll recap on some of the key takeaways but we recommend you head over to our resources section to listen to the full recording of the webinar.

Watch the on-demand webinar now >>>>>>

What’s the opportunity?

Let’s start with a few facts about the opportunity in Australia:

  • 10% of retail sales are online. To put this into context it’s a little way behind the US (14%) and the UK (16.5%).
  • $29b was transacted in Australian online retail market in 2018
  • Since 2013 Australian e-commerce has been growing at a rate of 16.5% CAGR
  • Marketplaces and discount department stores account for 36% of all online sales

How do Australian consumers like to shop?

As we can see from the stats above, Australian consumers love to shop on marketplaces. Why is this? Well according to Talia, Australian customers are all about the one-stop shop for the brands they know and love. It’s no surprise to say consumers want everything in the palm of their hand. We all shop on our commute, browse sites when waiting at the dentist or scroll on the sofa watching TV. Marketplaces offer a convenient, easy way to access brands and shop products.

Globally there’s been a huge shift to mobile shopping. In fact, already on Catch, 70% of their traffic comes through mobile and via their app. So it’s a good job Catch is optimised for mobile.

So why should UK brands be considering going down under?

Brands and retailers looking to attract new customers and explore new sales channels should look no further.

  1. Australia is experiencing rapid market growth.
  2. There are low barriers to entry as an English speaking nation.
  3. It’s a great way to move off season stock as well as end of line.
  4. Australian consumers love shopping on marketplaces.
  5. Catch is fully mobile optimised.

Tell me a bit more about Catch

Catch was launched in 2006 by two brothers out of their garage (as every great tech story is!) as a deal of the day website.

A simple concept ー one new product a day. And by 2017 Catch had 50,000 SKUs. Pretty amazing growth story right!

They quickly realised that the fastest way to scale was through launching a marketplace connecting a network of domestic and international sellers. Catch focused on a curated offering from the outset ensuring every product meets their high standards of quality and service and they found their consumers embraced an expanded catalogue resulting in 55% growth in customer acquisition.

In 2019 Catch was acquired by Westfarmers ー the largest retail group in Australia who operate over 1200 retail stores, including the biggest department and hardware stores.

Fast forward to the present, what does the picture look like?

  • Nearly 2 million active customers
  • Over 15 million monthly visits
  • 1m app downloads (and growing at a rate of 7000 downloads a week)
  • 15,000 orders a day

What does the average Catch customer look like?

Tall, dark hair… just kidding!

Catch attracts a range of consumers, here are a few facts about the average customer profile:

  • 63% of their shoppers are female
  • 55% of shoppers are aged 25-44 years old
  • Average cart contains 4.3 items
  • Average order value is AU$105
  • Very low returns rate of 2%

What are their most popular product categories?

Whilst many shoppers enjoy browsing a range of product offerings, typically UK, US and EU sellers have most success in these categories:

  • 38% apparel and footwear
  • 18% media (such as books and computer games)
  • 14% jewellery and accessories

Who’s had success selling on Catch?

Tonnes of sellers. Here’s just one testimonial to give you a snapshot.

“Since starting to sell on Catch just over 12 months ago, we have had 100% increase in sales in the Australian market.

We have had a good uptake of products and received great support from the Catch team. We have also had success with the marketing activities which have resulted in good ROI.”

Universal Textiles UK

This brand has been selling on Catch for over 2 years. As a ChannelAdvisor customer they were able to launch with ease using our integration.
In fact, sellers from the UK generated AU$1m in Gross Transaction Value.

What support can you expect from Catch?

The short answer, lots!

Catch is a curated marketplace and they target sellers who can meet their high standards. This means sellers aren’t competing with thousands of other sellers with the same products. Catch are always looking to fill gaps in their product offering, ensuring they can provide a great experience to customers and sellers alike.

Each seller works with a dedicated account manager and technical team who support sellers every step of the way from onboarding, marketing, optimising listings, customer support, as well as helping with billing and account reconciliation.

Watch the on-demand webinar to understand more about Catch support >>>>>>

How do you start working with Catch?

It’s a simple process.

  1. Sellers need to apply. During this stage Catch will want to learn about your product range and operations.
  2. Once approved you are assigned an onboarding team member who will help get your listings up and running. (Tip > by being a ChannelAdvisor customer you’re already halfway there, we can help you streamline and automate this).
  3. Prior to going live, the Catch team will do the final check of products and listings and ensure you meet their content guidelines in addition to looking where they can add value.
  4. Once launched, you can join and explore the Catch marketing initiatives like daily emails and homepage features.

And that’s it. The opportunity in Australia is well worth exploring and Catch is a key strategic partner to help you reach consumers in this exciting market.

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