Cheap at twice the price

Daniel Wright moved back home to Australia just over six months ago, after seven years in the UK. I knew him from his time at iProspect in London, where he was the Head of Affiliates. He’s now the Head of Marketing for Groupon in Australia and New Zealand.

So how was he finding things back in Australia after so long away? This called for a beer or two.

Dan Wright

“What can we get away with charging?”

According to Dan, that’s the question on the lips of many of the eCommerce brands coming over to Australia. “They can charge twice the amount they’d charge overseas and it’s still a good deal over here”.

It’s hard to believe, but even with shipping costs it’s often cheaper to buy from the UK (and sometimes it’s quicker too). Things are about to change – the big eCommerce guns are on their way over to Australia. Amazon will be here very soon, ASOS is here already, H&M is coming, as is Next.  They’ve seen the growth potential in the APAC market, and Australia is pretty high on the list.

There’s a tremendous appetite for it, backing up what Jon had said about underestimating the market. Around 1/20 of Australia’s entire population use Groupon’s website each day to find best deals. The eCommerce sector in Australia is showing something like 45% year-on-year growth.

Dan welcomes the injection of overseas retailers into the Australian market. “It’ll create the perfect competition” he remarks – “Australian retail will have to respond and it’ll create a far better online environment for consumers.” The increased competition means better prices for consumers, better service and better delivery options.

It feels like the market is about to surge and whether Australian retailers ride the crest of the wave or get caught in the rip tide* will depend on their appetite to adapt and evolve.

* Since I’m in Australia, I thought it was only right I attempt one crude and ineffective surfing metaphor