Expanding your business to the UK? Market context Online shopping accounts for 10% of all retail sales 1 in the UK, and this growth is forecast to increase 2 . With 70% of the population spending an average of £1,083 per year, many Australian businesses are exploring expansion opportunities in the UK 3 . The UK consumer Shoppers in the UK are spending more with every online purchase, and the average amount is now £86. UK consumers are also tech-savvy, and purchases made via mobile devices is increasing. The conversion rates of online purchases via mobile devices is also on the rise 5 . The importance of eCommerce in the UK The online overseas shopping market is currently valued at £8.5 billion, and is expected to grow to £18 billion by 2018 4 . £18 B illion Did you know? In the UK, people aged 25 – 34 are the largest segment for online purchasing, accounting for 27% of all online revenue 2 . What are they buying? The most common products and services purchased online in the UK are consumer electronics, such as personal computers, phones, TVs and MP3 players. Following this is clothing, footwear and accessories, and then food and groceries 2 . 1. Post & Parcel News, 16 January 2014. 2. E-Commerce & Online Auctions in the UK: IBISWorld Industry Report, November 2013. 3. UK B2C E-Commerce Report, www.yStats.com, 2012; International Communications Market Report, Ofcom, December 2012. 4. Modern Spice Routes, the cultural impact and economic opportunity of cross-border shopping, PayPal, 2013. 5. UK online sales reach strongest Q1 growth since 2011, CEP-Research, May 2014.
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Expanding your business to the UK?Market contextOnline shopping accounts for 10% of all retail sales1 in the UK, and this growth is forecast to increase2. With 70% of the population spending an average of
£1,083 per year, many Australian businesses are exploring expansion opportunities in the UK3.
The UK consumerShoppers in the UK are spending more with every online purchase, and the average amount is now
£86. UK consumers are also tech-savvy, and purchases made via mobile devices is increasing. The conversion rates of online purchases via mobile devices
is also on the rise5.
The importance of eCommerce in the UKThe online overseas shopping market is currently valued at £8.5 billion, and is expected to grow to £18 billion by 20184.
£1
8 B
illio
n
Did you know?In the UK, people aged 25 – 34 are the largest
segment for online purchasing, accounting for 27% of all
online revenue2.
What are they buying?The most common products and services purchased online in the UK are consumer electronics, such as personal computers, phones, TVs and MP3 players. Following this is clothing, footwear and accessories, and then food and groceries2.
1. Post & Parcel News, 16 January 2014. 2. E-Commerce & Online Auctions in the UK: IBISWorld Industry Report, November 2013. 3. UK B2C E-Commerce Report, www.yStats.com, 2012; International Communications Market Report, Ofcom, December 2012. 4. Modern Spice Routes, the cultural impact and economic opportunity of cross-border shopping, PayPal, 2013. 5. UK online sales reach strongest Q1 growth since 2011, CEP-Research, May 2014.
6. UPS Pulse of the Online Shopper: a customer experience study, comScore, September 2013.
Did you know?Free shipping is the highest driver of positive recommendations amongst UK online shoppers. The second highest driver is whether the shopper receives their product when expected6.
Customs, duty and taxes to be aware ofIt’s always best to check what you can send and how you can send it, before you send it. For more information, visit:auspost.com.au/parcels-mail/dangerous -and-prohibited-items.html
For more specific information, visit HM Revenue & Customs at: www.hmrc.gov.uk/customs/tax-and-duty.htm
Similarly to Australians, UK online shoppers are strong users of social media, with over half ‘liking’ a retailer
on Facebook with the intention to look out for
promotions. Twitter is also popular, with one-third of UK online shoppers using the network6. Not only are
UK consumers comfortable with online shopping, they are also happy when they
do so, with 80% being highly satisfied with the experience,
compared to 76% in other European countries6.
Before you begin1. Do your research
Research your target market and consider the unique selling points of your product or service.
2. Develop your strategy Consider recent market trends and your long and short-term strategies.
3. Confirm your logistics Contact Australia Post to see how we can help streamline your logistics and help you reach your customers in the UK.
How we can help get you thereThrough the combined services of Australia Post and StarTrack, we can offer you a range of products and services to help you reach your customers in the UK. Whether you require urgent or standard delivery, supply-chain solutions, sea or air freight, we can tailor a solution for you. For more information, contact your Account Manager or visit auspost.com.au/international-business
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