39% growth is expected from $18 billion in 2013 to $25 billion in 2015
In a joint-study by Frost & Sullivan and NetSuite Inc, e-retail results for the Australian market have indicated that there is much room for expansion but also, that there are several factors which have contributed to the reduced momentum of online shopping in Australia with online at 7% of total retail sales, compared to 10% or more in the USA and the UK.
The reasons, according to the study are that:
*Cost of living has risen in Australia and people cannot afford to splash out on a consistent basis when saving is a more responsible option.
*Consumers are able to buy online goods with better variety and at cheaper rates, from overseas websites
Market Cap of Meme Cryptocurrency Dogecoin Spikes to Unprecedented LevelGo to article >>
*There is a need for more advanced integration between front-end systems (orders) and back-end systems (inventory management) in order to provide improved customer service, promotion and a nicer brand experience. It also costs more for e-retailers to run each channel separately.
But online retail is certainly on the move, thanks to:
*The growing mobile payment opportunities, which make shopping from anywhere, at any-time, a certain e-commerce stimulator.
*The expanding participation of consumers on social media platforms like Twitter and Facebook: they will help to create a buzz around online shopping through peer recommendations, advertising etc, which provides many opportunities for retailers to market their goods for online purchase.
According to Mark Dougan, managing director for Australia and New Zealand for Frost & Sullivan, “As Australian consumers become more confident with online shopping, and as a greater number of retailers actively promote their online offerings, the value of online retail sales is growing at double-digit rates, suggesting that Australia still has room to grow. Many brick and mortar retailers are currently missing out on market opportunities from the booming online retail sector in Australia. Taking a multi-channel approach can offer them many opportunities, such as lower operating costs, the ability to reach new customer segments, the potential to broaden their product range and the ability to operate with fewer geographic limitations.”
Image courtesy of Wikimedia