Coles Partners with eBay to Propel Online Shopping Performance

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By Published On: March 6, 20190 Comments

Coles plans to reach an additional 11 million online shoppers through its new partnership with eBay Australia.

Coles and eBay have joined forces, with the Aussie supermarket launching a range of its perishable and non-perishable items on eBay’s local online marketplace. Available products will reportedly include selected pre-packaged food, pantry goods, personal care and household items.

According to Alister Jordan, Coles’ online chief executive, this partnership is part of the supermarket chain’s mission to make grocery shopping easier.

“We are always looking for ways to make life easier for our customers,” he said in a statement Wednesday morning.

“By partnering with eBay, we are providing our customers another convenient way to access our products and have them delivered straight to their door,” he continued.

When announcing the partnership, eBay and Coles both confirmed that shoppers in metro Sydney, Melbourne and Brisbane will be able to access Coles products on eBay for the same affordable price they pay in-store. eBay Plus members will also enjoy free shipping on purchases valued $49 or more, as well as double flybuy’s points on all online orders. The first 5,000 shoppers in these regions will also get 25 percent off their first Coles order on the online platform.

Coles and eBay join forces to gain greater share in the online grocery market.

“Coles is one of Australia’s oldest and most trusted brands, so we’re excited to welcome them to eBay as they broaden their online channels. Both eBay and Coles share the vision of providing convenience, range and value to our customers and together we can make it even easier for Aussies to meet all their shopping needs in one place,” said Tim MacKinnon, the managing director of eBay Australia and New Zealand.

Part of Coles’ joint vision with eBay to make grocery shopping easier is a new suite of delivery options available to consumers shopping with Coles via eBay. At launch, the supermarket chain will reportedly offer an “unattended delivery option”, allowing couriers to leave shoppers’ online orders at their delivery address unattended. Coles says that further delivery options will also be introduced throughout the year.

The value of online grocery shopping in Australia has increased tenfold over the past 12-months. Research from Nielson in late 2018 revealed that the value of online grocery shopping in Australia jumped by 39.7 percent year-over-year (YOY). Meanwhile, the total grocery market only grew by a reported 2.7 percent in the 12-months ending October 2018.

According to Nielsen’s quarterly Grocery E-Commerce Report, online groceries have carved out a greater share of the overall market, gaining an extra percentage point to reach a 3.8 percent stake in total grocery dollar sales.

Not surprisingly, Coles and Woolworths hold the largest market share, representing a combined stake of 85 percent of total online grocery sales. In an earlier results statement, Coles said its e-commerce revenue is on track to reach $1 billion in sales in FY19, with eBay set to help the business leverage this online potential.

However, despite strong growth in the sector by Woolworths and Coles, Nielsen has cautioned that Amazon’s decision to start selling pantry goods on its local marketplace could have a bigger impact on the Australian industry than originally suspected.

“The online grocery landscape is likely to continue its rapid growth as Australians get more comfortable with the experience, and certainly as Amazon expands its offering,” Alfredo Costa, head of retail at Neilsen said last November.

“Household brands from across dry grocery categories, such as biscuits, cereals, and confectionery are now available for purchase via Amazon, as is a range of health and organic items which may attract customers looking for specialty items they may not have seen in their local bricks-and-mortar stores.”

Coles recently ranked number two in Power Retail’s annual Top 100 Online Retailers list. Find out why in the latest copy of the 2019 E-Commerce Leaders’ Playbook, which is on sale now! 

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