Thinking of Buying an Ecommerce Business in Australia? Here Are 3 Vital Questions to Ask
The Australian ecommerce industry generated $56.6 billion in revenue in 2025, with profit margins averaging 7.5%. Over the past five years, revenue has grown at an annualised 8.9%, driven by consumer convenience, smartphone adoption, and digital payment technologies.
Revenue is projected to grow at 5.1% annually through 2030, reaching $72.5 billion. Growth will be supported by younger demographics, rising disposable incomes, and expansion of omnichannel retail. However, competition from overseas players, high digital marketing costs, and weaker consumer sentiment during cost-of-living pressures remain key risks.
1. Is the Business Financially Sustainable?
Why It Matters
Ecommerce businesses can achieve higher margins than traditional retail by avoiding brick-and-mortar costs, but profitability is increasingly pressured by digital advertising expenses and logistics costs. Major operators such as Amazon, eBay, and Kogan have set high competitive benchmarks.
Independent operators often thrive in niches, particularly where they can reduce reliance on paid advertising by building strong brands and customer loyalty.
What to Check
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Revenue & margins – Compare profitability with the industry benchmark of 7.5%.
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Advertising spend – Review cost efficiency in digital marketing channels like Google Ads, Meta, and TikTok.
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Logistics & fulfilment – Assess warehousing costs, delivery arrangements, and reliance on third-party logistics providers.
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Cash flow management – Ensure the business can handle working capital demands tied to inventory and shipping.
2. Does the Market Position Provide Competitive Strength?
Why It Matters
Ecommerce is highly competitive, with market share dominated by Amazon (10.8%) and eBay (8.3%). Smaller operators compete by offering unique products, premium experiences, or targeting underserved niches. Businesses with strong branding, repeat customer bases, and omnichannel strategies achieve stronger resilience.
What to Check
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Target market – Identify whether the business appeals to younger, tech-savvy consumers or older demographics now increasing online spending.
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Competitive positioning – Assess how the business stands out against both large multinationals and local players.
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Brand loyalty – Review customer reviews, subscription models, or membership programs.
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Omnichannel strength – Check integration with physical retail, pop-up stores, or marketplaces to expand reach.
3. Is the Business Aligned with Industry Trends and Future Growth?
Why It Matters
Future ecommerce growth will be shaped by mobile shopping, sustainability, and logistics innovation. Younger consumers are driving demand for sustainable packaging, transparent supply chains, and ethical brands. At the same time, faster delivery expectations are pushing businesses to adopt AI-driven logistics and localised fulfilment.
What to Check
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Technology adoption – Review whether the business uses AI, automation, and mobile-first design to improve efficiency.
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Sustainability practices – Assess packaging choices, supply chain transparency, and eco-friendly initiatives.
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Global competition – Determine how exposed the business is to international platforms and whether it can compete on shipping speed or product uniqueness.
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Scalability – Consider whether the business model can expand into new categories, markets, or subscription services.
Ready to Invest in a Thriving Ecommerce Business?
With strong growth prospects, consumer convenience, and opportunities for niche branding, ecommerce businesses remain highly attractive.
Long-term success depends on cost management, customer loyalty, and the ability to adapt to evolving technology and sustainability expectations.
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