Whether it is purchasing the latest fashion, ordering takeaway, or paying for that questionable parking ticket, online transactions are becoming the easiest and most convenient way of purchasing and acquiring our little luxuries.
But how much are we spending? What are we buying? And how does the future look for ecommerce in Australia?
Shopping, paying bills, and carrying out business online is becoming the norm for many Australians in their every day lives. Online business is BIG business. Whether it is purchasing the latest fashion, ordering takeaway, or paying for that questionable parking ticket, online transactions are becoming the easiest and most convenient way of purchasing and acquiring our little luxuries.
But how much are we spending? What are we buying? And how does the future look for ecommerce in Australia? How ready is your business to operate and compete in this thriving digital landscape?
How much are Australians spending online?
The Australian Bureau of Statistics reports the total online retail spend for the period of 2011-2012 was $10.8 billion, or 4.5% of total retail sales - a significant slice of the retail pie (Power Retail). With figures rising exponentially, the slice is quickly becoming a sizeable hunk. Forrester Research predict that Australian online commerce is expected to exceed $33.3 billion by 2015 (Power Retail).
What are we purchasing?
Goods and services account for the majority of online spending - the most popular being fashion, with 50% of shoppers buying clothing and jewellery online. Entertainment (47%) electrical items (43%) and travel (37%) were also ranked highly followed by toys/games and cosmetics (eMarketer Report).
Online retail stores that are most visitied by Australian shoppers include eBay, Amazon, Apple, and deal of the day websites such as Groupon and Catch of the Day.
Who are our online shoppers?
The number of Australians who shop online has tipped over the 50% mark for the first time (Roy Morgan, 2013 State of the Nation Report.) So who are they?
The majority (73%) are male and female aged 35-44 years. Online expenditure in this demographic is encouraged by higher and more disposable incomes. The 25-34 and 45-54 age groups follow closely at 69% and 65% consecutively (econsultancy.com).
Australians living in remote locations also make up the national demographic of online shoppers.
What is driving e-Commerce spending?
Aside from the obvious technological innovations, which make it easier to shop online, consumer behaviour and attitudes are also shifting. Consumers are becoming increasingly media savvy and confident in online shopping.
Lower prices, and the ability to access an extensive range of goods, are also key drivers for shopping online. Every penny counts for today’s consumers; the Internet enables them to compare prices secure the best deal.
How are we shopping? – The rise of m-Commerce
More and more people are using their mobiles or tablets to shop, whether it is from their armchairs at home, on their lunch breaks, or on the daily commute. Seventeen per cent of Australians are now shopping via mobile devices (eWAY).
As a result more businesses have incorporated this into their digital strategy by creating optimized sites and apps, which make it easier for consumers to browse products, make quick purchases and spend less time going through checkout.
International purchases Vs National online spending
Sadly for Australian retailers, a significant portion of online expenditure is going overseas; 19% of those who shop online buy from overseas retailers. Only 53% buy from Australian retailers (Australian Communications and Media Authority).
Although this does not look positive for Australian online retailers, it does represent an opportunity for businesses to ramp up their online strategy and snatch some of it back.
The future of ecommerce in Australia
With the Australian e-Commerce industry continuing to grow at a steady rate (12% in 2014, eCommerce Report), Australia is a key market segment for overseas retailers. This poses a greater competitive threat for national online retailers who will have to work hard to maintain and increase their market share. Digital strategy is key for online retailers and other businesses wanting to thrive in this aggressively competitive landscape.
Traditional retailers in Australia will embrace online retail however so far very few have embraced it fully (Power Retail).
Many e-commerce sites will jump on the responsive design bandwagon and engage the redesign of their sites to reflect the explosion of new technology, new hardware, new browsing and new ways of purchasing (Power Retail).
Are you ready to get onboard?
Over half the Australian population is shopping online yet despite this, less than half of Australian businesses have an online presence.
Don’t get left behind, do your research, and get some professional advice on how best to grow your online business. MeMedia are happy to point you in the right direction and help your online business flourish. Call 1300 MEMEDIA.