Australia poses unique logistical challenges that must be considered when developing e-commerce operations in the region. The nation features a growing, developed economy and a population of more than 24 million. However, the nation’s population is spread out over more than 7,692,024 km2.
The nation is the sixth-largest in the world, but it’s population ranks 54th. This leads to considerable challenges as large swaths of land have low population densities, while heavily developed cities still face congestion.
As an island, Australia also depends exclusively on air and sea transit for international trade. New Zealand and the U.S. represent the primary markets for Australian trade, but India and China are emerging quickly.
Despite these challenges, Australia ranks as the nation with the 19th strongest logistics network in the world, based on The World Bank’s global logistics performance index. The World Bank has tracked logistics performance from 2007 through 2016. In general, Australia’s rank has remained strong, fluctuating between 16 at its strongest and 19 at the worst.
The strong logistics foundation is combining with a rapidly growing digital economy to fuel e-commerce growth across the country. Spending on online retail goods increased by 18.7 percent year-over-year in 2017, with total spend climbing to $21.3 billion that year.
Download our full country fact sheet for Australia for more details about the country’s growing e-commerce market.