Social e-commerce in Australia is growing rapidly, with sales expected to exceed $1.3 billion this year

Social e-commerce in Australia has been booming in recent years . According to the latest research data , sales are expected to grow by 9.2% annually , reaching $1.385 billion in 2022. By 2028, Australia's social e-commerce GMV will increase to $2.4375 billion.

More and more Australian consumers are starting to shop through social e-commerce, and this change is being driven by young Australian consumers.

According to the global social e-commerce survey data in the first quarter of 2022, nearly 6 million young consumers aged 14 and above in Australia shopped through social e-commerce in 2021. This accounts for 30.2% of all Internet users in Australia, making Australia one of the countries with the highest social e-commerce penetration in the world.

It is worth noting that social e-commerce has become mainstream in Australia in 2019, and has grown very rapidly in the past two years. In 2020, due to the impact of the epidemic, traditional physical retail was interrupted, and Australia's e-commerce sales soared, and social e-commerce sales also grew simultaneously. By 2021, Australia's social e-commerce sales surged nearly 10 times compared to 2019.

Currently, TikTok is replicating its successful social e-commerce experience in the United States and the United Kingdom in the Australian market.

The global pandemic has allowed TikTok to reach consumers directly on social apps . In the past, TikTok has driven a lot of sales in Europe, the United States and China with big brands such as Dior and Gucci .

At the 2021 Melbourne Fashion Festival Australian Fashion Summit, TikTok announced Australia as the next major growth market in the social e-commerce sector. Similar to its strategy in other markets , TikTok will host live-streaming sales events in Australia .

On the other hand, TikTok will also cooperate with Australian retailers in the next 1-2 years to increase their sales, which is the same strategy as TikTok 's strategy in the US market.

It is worth noting that in March 2021, TikTok and Walmart held their first live-streaming shopping event in the United States, where creators and industry insiders joined the event to showcase the products. The event received more than seven times the number of views than Walmart expected , and its followers also increased by 25%.

Facebook is continuing to launch new shopping features and increase its investment in social commerce .

Other companies are establishing strategic partnerships to further penetrate and expand their market share in the social e-commerce industry. For example, Pinterest has partnered with Shopify to allow Shopify merchants to sell products on Pinterest in a more convenient way.

In addition, TikTok will form alliances with major retailers in the fashion category to replicate its success in social e-commerce in other countries in the Australian market. TikTok will host live shopping events in the next 1-2 years to attract more and more shoppers to use its social e-commerce platform in Australia.

As more and more companies are vigorously developing social e-commerce, many small and medium-sized sellers will also face new opportunities and challenges.

Social e-commerce in Australia