Last Updated | May 2, 2021
Overview: eCommerce Industry in Australia
eCommerce has massive potential in Australia, but setting up a “successful” eCommerce store is challenging. Needles to say, it’s not impossible as you can follow some steps and make the right decisions at the right time, and it will result in a promising and successful eCommerce store in Australia. According to 2019 stats, Australian eCommerce has hit 32 billion and keeps scaling up by 20.8% every year. Heck, Australia has even secured a spot as the 10th largest eCommerce market globally (in terms of revenue).
As for COVID-19, it has resulted in explosive eCommerce growth; it spiked to 11% from 7.1%. Still, even before the pandemic, the Australian eCommerce was forecasted to grow in 2020, so it’s the right time to opt for Folio3 Shopify app development services in Australia and start making some bucks.
By 2021, the growth has spiked up to 8.9%, counting the value at $33.1 billion. In April 2020, online purchasing grew by 6.8% as compared to 2019’s end. Well, these are lots of stats, right? But again, can you see the pattern of how Australian eCommerce is flourishing? So, if you want to create an eCommerce Shopify store in Australia, continue to read as we have come up with everything you need to know to start a Shopify ecommerce store in Australia.
How To Sell Online In Australia?
- Understanding The Online Shopping Preferences Of Australians
Australia is a diverse country in terms of culture. Ever since 1945, more than 7.5 million people have moved to Australia, which has made it one of the few countries with the highest percentage of overseas-born people. This diversity in population has resulted in variating expectations among Australian customers. For instance, 62% of consumers want to purchase from brands that create diverse ads.
These customers are demanding authentic yet personalized advertising, engagement, and experiences. Gaining an understanding of cultural diversity will help design a result-oriented product strategy right from the beginning. The Shopify store must-have products that cater to customers from different backgrounds.
However, you can also choose one customer segment and cater to them through the product range and keep fulfilling the chose niche. For local Australian shoppers, China, Japan, and the US have become the famous digital shopping areas. This is because the reports have concluded how Australian customers tend to buy overseas, and these foreign eCommerce sales generate higher sales.
Secondly, the customers are expecting faster home delivery services and better flexibility in order fulfillment. In particular, people who shop for food and apparel demand the fastest delivery speed, and that’s what they expect from the stores. As far as the payment methods are concerned, PayPal remains at the top, but the “buy now pay later” solutions are gaining popularity.
According to KPMG, the Afterpay accounts are more common amongst millennials, and around 27% of them already have the account. In addition, the customers are extremely concerned about societal and environmental values, and 49% of the eCommerce shoppers are choosing brands that support/Shopify maintaince eco-friendly practices and reinforce them. With the COVID-19 pandemic, Australian customers are focusing on buying sustainable products rather than discretionary products.
- Registering The Business & Domain Name
Once you have identified the customer base and understood the diversity in customers, you need to register the business and domain name. The domain name must complement and suit the products. To illustrate, if you are selling cosmetic products, don’t forget to use words like makeup, beauty, or cosmetics in the domain name. Also, you must use the .au extension for setting up the Shopify eCommerce store.
- Using The Functionalities & Shopify Store Design For eCommerce
Once you are certain about the domain name and business name, you have to invest in the functionalities and store design because it helps curate an appealing first impression, enabling you to improve the conversion rate. You must keep in mind that store design can directly influence traffic-capturing and transform them into sales. In addition to improving the navigation, you must use captivating media for the store.
As far as the functionalities are concerned, it’s about using the right modules, extensions, themes, and plugins since they streamline the eCommerce operations of the store. These components will deliver conversion optimization, maintenance points, and marketing insights.
- Tracking The KPIs
Before you launch the Shopify store, you must learn about key performance indicators that help track the orders and assess the performance. Without these KPIs, you won’t be able to understand the performance standards of your store. In particular, you have to learn about conversion rate, average order value, ad spending, shopping cart abandonment, map overlays, and customer lifetime value.
- Promoting The Store
When it comes down to advertising and marketing strategies, you must adopt the holistic approach. With the Shopify store, you can use mobile lead generation, content marketing, SEO, and PPC for enhancing visibility. SEO and SEM can help the Shopify store ranking in search engine results with the utilization of adequate meta titles, forum participation, and keywords.
In addition, social media marketing plays an influential role in marketing the Shopify store (you must focus on different social media platforms, such as Twitter, Facebook, and Instagram). The store owners can sign up for Google AdWords and Facebook ads for capturing attention and driving a higher traffic base to the Shopify store. Also, these ads help create higher demand and awareness about the Shopify store.
- Choosing The Payment Methods
Before you create the Shopify store, you must ensure higher conversion, and this can be harnessed with correct payment gateways because it can help improve the eCommerce transactions. In Australia, you can opt for POLi internet banking, credit cards, mobile payments, eWallets, cash on delivery, and bank transfers. The payment method will also influence the audience type and product type.
- Logistics Plan
Once the payment methods are set, the last step is to create and implement the logistics plans for the Shopify store. Truth be told, it’s the final puzzle piece, and you must get it right to fulfill orders. You can source the order logistics to third-party courier companies, but you can also opt for in-house product and order distribution (you have to hire the riders for in-house distribution)
Why Starting An eCommerce Business In Australia Using Shopify?
We have already mentioned that the eCommerce business is flourishing in Australia, and Shopify is definitely the top choice for online businesses looking for a seamless store design, development, and management experience. Shopify stores are easier to set up, which results in efficient product and service selling. Shopify has empowered a variety of businesses to build a top-notch online presence.
Even more, the Shopify stores provide the opportunity to grab the attention of a wider audience base. That being said, if you want to take the money home, now is the right time to start an eCommerce business in Australia through Shopify. Plus, Shopify stores can be customized with the availability of plugins, extensions, and app integrations.
Starting An Online Business Checklist With Shopify in Australia
– Making The Shopify Account
The first step is to create a Shopify account by visiting the official Shopify website. The new users can sign up for a 14-days free trial. For this purpose, you have to hit the “get started” button and choose the store name. Also, fill up other fields and wait for Shopify to approve the account. Once the approval is given, you can fill the next fields.
– Adding Products
With Shopify, there are digital as well as physical products available. In that case, you have to add different pieces of information. First of all, you must add the product description with which you have to add the product title and the product description. While writing down the product description, you must use conversational language for easier readability. Also, you can add videos and pictures.
Secondly, you have to outline the product price, and in this case, you have to consider the item’s cost, overheads, perceived values, and shipping charges. In addition, do consider the additional taxes and charges while setting up the price. Once the price is set, you need to work on product inventory with which you can track the product stock and inventory. The last step is shipping, inclusive of customs, taxes, and shipping costs.
– Personalizing The Store
Your Shopify store needs to leave an impression, and it depends on you how you create the desired impression. The Shopify store must leave a positive and lasting impression on the customers because it results in immediate purchases and sets the tone for future purchases. In this case, you must add an “about us” page, FAQ section, contact page, and purchasing policy page.
Once these pages are set, you have to choose a theme; there are free as well as paid themes available. Whichever theme you choose, must align with the product range and functionality. After setting the theme, you have to optimize the home page because it helps convert visitors into customers. The homepage must highlight the product benefits as well.
When it comes down to personalizing the Shopify store, you have to modify the navigation menu. The navigation menu will outline the range of pages and products available on the Shopify store. You must create the menu according to the important and preferred page. Also, the navigation experience must be streamlined and convenient.
Setting up the domain is a crucial part of setting up the Shopify store. When setting up a Shopify store in Australia, you can buy the domain directly from the Shopify website. On the contrary, you can also use third-party providers to set up the domain.
– Setting Up The Payments
Once you are done setting up the Shopify store, you must remain considerate about the payment systems. The Shopify store owners must set up the payment system before going live. Some of the payment options include Shopify payments, Amazon pay, Apple pay, PayPal, and Google pay. When the payment systems are set, Shopify notifies about payment in the bank account via email.
– Shopify Shipping
The Shopify stores are integrated with built-in shipping suites that help calculate everything. In Australia, you can take advantage of low international shipping rates and domestic shipping rates from Sendle. This is because Sendle streamlines the shipping processes without any costs. For using Sendle, just create the shipping label, acquire the parcel collection strategy, and print down the shipping labels.
– Integrating APIs for Fulfillment
API is the application programming interface that allows the users to connect one app to another app with a collection of rules. Shopify allows integration with APIs with which merchants can update and add customer information, even addresses. That way, it becomes easier to calculate the shipping taxes and costs. You can get this app integration from Folio3 Shopify integration services in Australia.
What Are The Legal Requirements Of Starting An Online Business In Australia?
When it comes down to goods and services in Australia, they are charged with 10% GST, so it is essential to consider the GST taxes whenever selling products through Shopify store. The best thing about starting the Shopify store in Australia is that the taxing system is convenient and simpler. To begin with, GST is applied to the offline as well as online retail sales that are imported to Australia and send to customers.
In case the imported products have a value higher than $1,000, the importer will need to pay the GST, pay the duty, along with other charges and taxes. Secondly, if you are selling to Australia and are making more or equal to $75,0000, the GST must be charged for low-value products. So, the legal requirement is to register for GST in Australia and ensure to collect these taxes.
In addition to GST registration and collection, the Shopify store owners in Australia should register with the Australian Business Number (ABN). ABN is the 11-digit number that creates a business identity in front of Australian customers and the government. In addition, when you register for ABN, you will be able to obtain an Australia-specific domain name and helps gain customers’ trust.
What Are The E-Commerce Laws And Regulations In Australia?
- Australian Consumer Law
The Australian consumer law has been around for decades, but it has been modernized to align with the needs of the eCommerce stores. Back in October 2008, the Council of Australian Government developed the law to offer protection and assurance to the consumers, be it for online shopping or in-store shopping. The purpose of this law is to mediate the relationship between the customers and businesses. Australian consumer law also ensures that customers aren’t being ripped off.
- Privacy: Spam and Data Protection Laws
It’s needless to say that email automation has become an apt advancement in the eCommerce market. Multiple companies have created opportunities for attracting, converting, and retaining customers. Email automation ensures that customers are aware of sales, new products, and special offers while you deliver high-end content to them.
Businesses tend to collect information from the customers through emails which means the customers will keep receiving the promotional emails and materials; it can even frustrate the customers. That being said, the Australian government addressed these privacy issues by launching the Spam and Data Protection Laws. With this law, the number of emails and messages businesses can send to customers is regulated.
- eCommerce Shipping Restrictions
Australia has implied restrictions on products that can be sent through courier, freight, and post. ACDG has prohibited Australians from posting aerosols, airbags, ammunition, alcohol, animals, cigarettes, dry ice, fresh fruits, vegetables, nail polishes, explosives, and perfumes. In addition, shipping restrictions also apply to the following products; poison, perishables, and hazardous materials.
How Do I Need To Register My Online Business In Australia?
Online businesses must be registered to protect themselves from penalties and fines. In case you want to register an online business in Australia, you can register the online business at register.business.gov.au. The online businesses can register the business name, ABN, and Australian company name and company.
In addition to these factors, you can use the website to register for PAYG withholding and GST. Secondly, you can opt for asic.gov.au to register the business name. It’s needless to say that the business owners must register the businesses and business name. Also, there are various taxes for which you must register, respective to the laws.
Along with GST, ABN, PAYG withholding, you also have to register for TFN (tax filer number). When registering the business name, you must choose the business name that suits the provided products and services. You must check with the ASIC website to check for the availability of the business name. However, the business name is not the trademark.
In case your business needs exclusive rights on some business name, they must register for the trademark. You must check for the registered trademarks to avoid infringement rights issues. For this purpose, you can check the trademarks through Australian Trade Mark Search which are available on the IP Australia website. The registration fees with ASIC are $35 annual and $82 for three years.
Online registration is likely to take around twelve minutes. In case the business owner already has ABN and has provided the documents and paid the charges, there are higher chances of confirmation. On the other hand, if you made an online payment through a credit card, the confirmation time ranges up to two business days. In the case of EFT, bank transfer, or BPay, the confirmation time will be around five business days.
What Are The Government Regulations For Business In Australia?
When it comes down to the government regulations for businesses in Australia. First of all, you need to ensure that the business is registered. For this purpose, you need to register the ABN and register for the taxes. In addition to business registration, there are various laws that businesses need to comply with for regulating Australian businesses.
- Australian consumer law – it was updated in October 2008. The law demonstrates that the Council of Australian Government will provide assurance and protection to the customers. The assurance is provided for in-store shopping and online shopping. In addition, this law streamlined the relationship between businesses and customers
- Privacy: Spam & Data Protection Laws – with the increase in email marketing and automation, the customers feel violated and frustrated by receiving excessive emails. That being said, this law will ensure that the Australian government curates privacy issues. This law ensures that messages and emails are minimized
- Product liability regulation – Australia has created the national statutory framework for regulating product information and safety standards. This will ensure that the harmful products aren’t marketed in Australia through any business. Also, there are fair trading offices that are responsible for implementing these product safety laws and rules
- eCommerce shipping restrictions – Australian government has enforced the restrictions on product transiting, such as post, freight, and courier. Also, with this regulation, they have outlined the products that cannot be shipped
What Is The Process For An Online Business License In Australia?
Online business licensing in Australia is a very convenient process. Truth be told, you can sign up on the ASIC website to register for the online business. For this purpose, the online business owners need to pay the registration fees, which include $30 for one year but $82 for three years. The payments can be made online. The users can register the GST, ABN, and more online.
The best thing about online business licensing in Australia is that the online payments made with a credit card will take two business days for confirmation. On the contrary, it will take five business to receive confirmation of online business if you make payment through bank transfer, EFT, and BPay.
What Is Selling Online Australian Tax?
When you are trying to make online sales in Australia, you have to pay the GST. The GST is applied to the sales of imported products and services to Australian residents. In the case of sales of imported low-value goods, the GST will be implied if the value is less than $1,000 or $1,000.
Is It Profitable To Sell Your Stuff Online In Australia On The Shopify Platform?
Yes, it is profitable to sell the products online in Australia through the Shopify platform. This is because the Shopify store can be personalized with app integrations, plugins, and extensions. Shopify has a 14-days trial, so you can create the shop and test how profitable it is. However, the Shopify store must be marketed and advertised to gain higher traffic, hence higher sales.
How to start an online shop business from home in Australia with Shopify?
When starting the online shop business from home in Australia with Shopify, you need to make an account on the Shopify website. Once the account is approved, you can start the 14-days trial to create the store and sell products from home. alternatively, if you have an existing store, Folio3 Shopify migration services in Australia can help you to migrate to the Shopify platform easily.
How to Start an online clothing business in Australia with the help of Folio3 Shopify e-commerce development services?
The Shopify store owners who want to sell clothes online can opt for Folio3 Shopify development services in Australia. For starting the online clothing business, you must create the store on the Shopify website after making the account and follow the government regulations to register the business.
Online selling rules and regulations: why do you need permission to sell products online?
You might believe that licenses and permissions are not essential, but it’s best to comply with the government’s rules and regulations when selling online in Australia. These permissions will ensure that your online business processing is according to laws established by the Australian government. Also, these permissions will ensure that your business is not charged with fines.