Future trends in the Australian e-commerce industry
In doing some research on the future trends of e-commerce in Australia, it came as no surprise to learn that the use of e-commerce by businesses and, more recently, households is steadily on the rise.
Survey data from the Australian Digital Economy E-commerce Trends and Statistics Report* suggests that Australian households are increasingly engaging in online purchasing – both domestically and internationally – but still lag some way behind their US and UK counterparts. Some reports even say that Australia is teetering on the brink of an online shopping explosion.
So you need to ask yourself – as a business, how well are you placed to take advantage of it?
The online spend directed towards international purchases varied between 3%-50% of the total spend in 2010, with overall estimates of online spending by households at 3%. Meanwhile, in early 2011 about 25% of mobile users were shopping online, with eBay reporting that an item is bought from a mobile every 15 seconds. The online economy is booming for some online markets with revenues increasing by up to 40% during 2010.
There’s no doubt that businesses of all sizes can greatly benefit from revenue growth and productivity increases with an online presence, but there still seems to be a reluctance by the majority to fully embrace it. There is still a widespread lack of understanding of these benefits and concerns about the cost of set up and ongoing maintenance.
With the widespread use of social networking sites and consumers getting information, advice and recommendations through their networks, Australian consumers stand to gain great savings from online purchasing. It’s never been quicker or easier to search for product information and access a wider range of information, bigger product choices and lower prices.
Rapid growth will see barriers to online retailing (or “e-tailing”) diminish over time for many businesses and consumers. With an increasing number of businesses offering support to retailers to set up an online presence, it will soon become a no brainer.
Consumers are already enjoying mobile internet and making purchases on their Smartphones. Local retailers stand to gain increases in revenue with an online presence and will suffer if not able to meet the competition from offshore producers. There is therefore an important and continuing role to be played to support local businesses to adapt.
At Netregistry we have dedicated account managers that specialise in helping businesses with e-commerce. Call 1300 638 734 to speak to one of our consultants and find out how you can start earning online today.