Online Shopping Grows

Online Shopping

Online Retail Sales set to grow 40 per cent

Australia’s online retail industry is set to grow 40 per cent by 2012, Pay Pal Australia; one of the world’s largest payment gateways says.

The e-commerce business, which allows payments and money transfers to be made through the Internet, said large Australian retailers such as Big W had extended their presence online, providing a boost to the industry. Online retail in Australia is forecast to reach $33.8 billion by 2012, up from $24 billion last year, according to research commissioned by eBay, which owns Pay pal

However, Pay pal Australia managing director Frerk-Malte Feller said while the industry was growing, it still lagged behind the rest of the world. Australia’s domestic retail spend online is half of what it is in countries such as the UK and US, he says.

“As Australian retailers struggle to build effective online presence, overseas competitors are taking advantage of the gap in the Australian market and are currently taking around 40 per cent of Australia’s online retail spend.”

“There is a huge opportunity for retailers to capitalise on the growing online marketplace in Australia. Web sites need to make available the purchasing of goods and services online, because consumers are using the technology, and in growing numbers”, says Nigel Brookson Managing Director of Thinking IT, one of Australia’s largest seo companies and website designers. It makes sense really to make paying for goods and services as easy as possible, but Australian small business in general is struggling with the whole ‘business online’ concept.

Figures show however that when a small business commits to having an online presence, their bottom line increases dramatically, and 90% report that their website and online advertising is by far the most cost effective source of new and repeat business.

“In the last six months alone the average consumer spent $1,223 on online shopping, an increase of $130 from the second half of 2009, according to Pay pal”

Several factors were been responsible for the slower uptake of “e-tail” among Australian consumers. Some consumers are worried about shipping costs, long delivery times and poor selection of items available in online stores. Other are more concerned about the security of transactions, which remains the number one concern to consumers shopping online, says Nigel Brookson. Businesses need to allay fears by having a clear online shopping policy, and deliver what is promised and on-time.

The annual Online Retailer Expo and conference is under way in Sydney this week with more than 3,000 delegates registered to discuss the future of e-commerce in Australia.