Australian Online Shopping & Forecasting (a)

Online Shopping, I cant say its 100% of our only future and it has difinitily changed our purchasing behaviour.

Some key points about Australia online shopping
Online shoppping in Australian is becoming more important and popular.
-the statistics from ABS estimated the domestic online shopping take 3 to 7 percent of share in total Australia retalier sales revenue.
-around 2 percent of total Australia retalier sales revenue is contributed from overseas online sales.
-Australia online shopping still hase huge potential. Now Australia online shopping (includes domestic and international) contributed 6 per cent of total retailing which convert to 12.6 billion AUD. At mean time, the online shopping in United Kingdom took 11 percent and 8 percent in United States.
-In next three years, ABS estimated Australia online shopping will take up to 10 to 15 percent annual growth rate. The fast development of new electronic devices are stimulating the online shopping growth.
-ABS research indicates the three major reasons that make Australian switchs to online shopping, lower prices, convenience and wider range of goods to choose from compared to those available from bricks and mortar retailers.
- Australian online shopping also drive logistics service fast growth in past several years. But, research found current Australia logistics system need to continue to invest and improve to cater to projected strong growth in online retail sales forecast in the future.

Future Trends of Australia Online Shopping

1. Consumers are confident when purchasing goods online
The new technology already totally changed the internet users' experience about online shopping. Online purchasing has evolved into a secure, efficient and reliable environment for time-poor and tech-savvy consumers. However, the new technology also bring the heavy competition from overseas to local business.




2. Overall Overseas Products Are Cheaper

Due to the impact of the global financial crisis, American economy made American dollar dramatically deperate in last 2 years, which means, Australia dollar fast increased value and provides strong purchase power to Australia consumers.  Now, Australians are more willing to take this financial advantage. Meanwhile, the research also found that Australian products should face high salary and utility cost than retaliers in United States and Britian. The high cost drive retaliers have to marked up 100% retaling price than product cost. In United States and Britian, the gross margin only around 50 to 70 percent.

3. Increase in Mobile Usage
Now, mobile phone already became a major component of everyday life. Peoples are no longer merely use mobile for phone call and test message only, but also use it as a personal device for personal life convenience. Based on the Report from ACMA that 6% of online shopping activities were conducted via mobile device and this number is increasing with double digital annually (ACMA 2011).

4. Increase in E-tailing

Online retailing (e-tailing) has become the one of the Australian fast growing and most revenue distribution channel. Research from AIMIA reported that more than 75% of Australia retailers already set online business and 43% companies have set fully serviced online shopping website.

 
Source (AIMIA Research, May 2012) 

Research from RoyMorgan showed that, in previous Australian online shopping already deeply affected traditional department store with 22.8 billiong revenue, up to 14.2% market share of totall sales revenue. Meanwhile, Australian Internet commerce from 2005 to 2010 already reached 143 billion.

Source (AIMIA Research, May 2012)

 

Value of Internet commerce in Australia, 2003-04 to 2009-10

 

Source: ABS (Summary of IT Use and Innovation in Australian Business, 2009-10, Cat. no. 8166.0).

Reference

ACMA 2011, Communications 2010-11 series Report 1 – Ecommerce marketplace in Australia: Online shopping, Australian Communications and Media Authority, Canberra, viewed 28 September 2012, <http://www.acma.gov.au/webwr/_assets/main/lib410148/cr_comp_report1-e-commerce_marketplace_in_australia.pdf>.

Fitzpatrick, N 2012, Telecommunication, Broadcasting and Transceiving Equipment Manufacturing in Australia, IBISWorld report no C2842, IBISWorld, viewed 25 October 2012, <http://clients.ibisworld.com.au/reports/reportdownload.aspx?cid=61&rtid=101&e=266&ft=pdf&beta=y>.
 
Kim, H-W, Xu, Y & Gupta, S 'Which is more important in Internet shopping, perceived price or trust?', Electronic Commerce Research and Applications, vol. 11, no. 3, pp. 241-252

Mobile Payments Today 2012, Verizon's 4G helps 3-D kiosks personalize shopping experience, viewed 23 September 2012


Sivasailam, N 2012, Online Shopping in Australia, IBISWorld, X0004, viewed 22 September 2012