As Amazon Australia takes orders in time for Christmas, this year’s Boxing Day online sales could see an increase of 45 per cent compared to 2016, according to data firm GlobalData.
The company’s latest consumer payments survey revealed that Boxing Day online spending on Australia’s largest annual sales day could reach A$290m. This would be three times more than average online sales on any other day of the year with payment cards remaining the preferred method of payment for Australian shoppers.
“It will be fascinating to see how well Amazon Australia, competes for its share of Boxing Day sales in this its first year of operation,” said Arnie Cho Payments division senior analyst at GlobalData.
“We estimate that over 40 per cent of this year’s Boxing Day online sales will be transacted through cards, which remain the preferred payment mode for e-commerce transactions in Australia.”
Alternative payment methods have already gained wide acceptance on the back of rising consumer preference for more convenient methods of payment.
“With retailers integrating their loyalty programs with mobile wallets, digital wallets are likely to continue to gain market share. PayPal alone could capture one fifth of this year’s Boxing Day online payment transactions,” added Cho.
Apple Pay is expected to capture a relatively small share. Three of the four major Australian banks – Commonwealth Bank, National Australia Bank, and Westpac –have announced a joint partnership to develop their own mobile wallet, Beem.
“The only major player in Australia currently working with Apple Pay is ANZ, which could hamper Apple Pay’s chances of making inroads in this year’s Boxing Day Sales,” said Cho.
In terms of devices used for online shopping, while desktops and laptops will remain the preferred channels, their share will continue to decline as more people are expected to shop using mobile devices.
Meanwhile, Amazon said the best-selling products since launching its retail offering one week ago ‘proved Aussies love of tech.’
Eight of the top ten products purchased falling into the category, while the top four best-selling items are video games with FIFA 18 PS4 topping the list, followed by CALL OF DUTY: WW2 PS4.
The popular non-tech items to make it to the top ten are books, with Australian author, Scott Pape’s The Barefoot Investor coming in at number seven and Jamie Oliver’s 5 Ingredients – Quick & Easy Food ranking as the eighth best-selling product in Australia.
With The Last Jedi premiering in cinemas in Australia this week, Amazon said it isn’t surprising that two of the best-selling products on the list are Star Wars related. Rogue One: A Star Wars Story CD and the Star Wars Death Star 3D LED Lamp have also piqued Australians’ interest in the run up to the big release.
“In the run up to Christmas it is not surprising to see video games featuring prominently in the top ten,” said Rocco Braeuniger, country manager of Amazon Australia.
“Outside of the top ten, Australians have been buying everything from daily essentials, including nappies and socks, to bigger purchases such as wearable tech and cameras.
“We focus on the Australian customer and on long term success. With this in mind we continue to work hard to deliver great customer experience and fast delivery; and to provide customers with an ever-increasing selection of products at low prices.”
New South Wales is the state to have made the most purchases with the Kindle Paperwhite being its most popular product. Despite the trend for tech, the first purchase made on Amazon.com.au was L’Oreal Paris True Match Foundation.
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