click frenzy 2017

It was supposed to be Australia’s equivalent of Black Friday but once again, bi-annual online sales event Click Frenzy has left shoppers fuming.

Around two million Australians were expected to descend on the Click Frenzy website at 7pm AEDT Tuesday for the 24-hour event, about half a million more than last year. However, even in its 5th year, Click Frenzy still appears to be suffering issues with load speed and a lack of discounts, according to furious shoppers:

With a confusing discount code system that involved constantly refreshing a section of the website for an hour, quickly writing down a code then hurrying to the checkout, Click Frenzy was a far cry from the organised online mega sales in the US and China. 

Australia’s only online mega event may still be in its infancy, but promising year-on-year growth - $200 million last year, and an expected $400 million this year – means there is room for cross-border retailers to succeed in the market.

Retail analyst Brian Walker, chief executive of the Retail Doctor, said an increasing number of Australians are shopping online:

"Australians are clearly getting more and more comfortable with the issues that beset them historically: security, trust, fraud”

Key metrics for retailers considering cross-border eCommerce with Australia

Australian shoppers:

  • are the most likely consumers in the world to buy from overseas retailers (63%) – main reasons include price, availability and better selection
  • like to shop with retailers from the US (86%), the UK (74%) and China (37%)
  • prefer to buy directly from retailer’s website (81%) vs a marketplace

This research shows the main opportunity for foreign retailers is in shopper experience – Australian shoppers are desperate for an easy, responsive checkout and local retailers are failing to provide it. Moreover, retailers must also consider how they will address the two biggest concerns of Aussie online shoppers: high shipping costs and returns.

With Amazon’s imminent opening in Oz, the market may be flung wide open to savvy foreign retailers who make a move soon.

eShopWorld Insight:

Australia is one of the fastest growing eCommerce markets in the world, with an annual growth rate of 9.3%. Retailers looking to expand into Australia need to consider a number of factors, from checkout to returns, with a particular focus on providing flexible, cost-effective, prompt, and reliable international shipping.