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eCommerce growth

The retail market transformed again in 2018/19, with online purchasing growing by more than 20 per cent nationally. The latest edition of the Inside Australian Online Shopping report shows that Australians are now spending $27.5 billion a year online, which equates to 10 per cent of all retail spending. The flow-on effect of this for Australia Post is that we continue to set records, with our domestic parcels volumes increasing by 7.3 per cent in 2018/19.

Behind this growth, we have observed some clear online shopping trends that we are incorporating into our strategic planning and our capital investment program. For instance, we have seen a 31 per cent increase in purchasing through online marketplaces, so the development of our partnerships with businesses such as Kogan and Catch are important to harness this growth.

Speed of service is being used by retailers as a competitive advantage to convert sales and retain loyalty, and we have been able to meet these demands for customers such as Cotton On and THE ICONIC, with our increased automation, increasing delivery of parcels by posties and the uplift in airfreighting.

We have also seen an increase in the number of peaks during the year, with Australians embracing online sales events, such as Black Friday, Cyber Monday, Singles Day, and peaks following long weekends. We are improving how we plan for these peaks, so that we are properly prepared to deliver quickly for our customers.

With the rise of eCommerce, consumers now have a world of choice and are increasingly buying goods from international locations. As a result, we are seeing increasing demand from overseas for clean, safe, premium-quality Australian-made products. We are supporting Australian businesses to capitalise on this growth through a range of initiatives. For Australians who are looking for value overseas, China is now clearly the dominant source of inbound goods, with 40 per cent of purchases by Australians coming from China.

We strengthened our international capability this year by securing full ownership of Aramex Global Solutions, which we previously held in a joint venture with Aramex. Since renamed Australia Post Global (APG), this company provides end-to-end, cross-border logistics solutions to international retailers, including access to customs clearance capabilities and our last-mile delivery network in Australia.