2012 e-commerce revenue forecasts hit $37.7b
Australia's online retail market is continuing its rapid ascent and is expected to reach $30.2 billion in revenue in 2011, according to research from PayPal.
The Secure Insight: Changing The Way We Pay report – commissioned by e-commerce heavyweight PayPal in partnership with Forrester Research – found that shoppers were increasing their online spend.
PayPal Australian managing director Frerk-Malte Feller said: "Online commerce is no longer just about having a website and we have seen more changes in the way people shop and pay in the last year than we have seen in the last 15."
And many Australians who made their first online purchase this year have contributed to the industry's record sales.
Figures released this week (October 20) show that the e-commerce sector is performing above government expectations.
Market projections made by the federal government in 2010 now appear to be relatively conservative in their forecast of $36.8 billion in revenue by year-end 2013.
Instead, enthusiastic consumer take-up of online retail has led to new predictions that the sector will experience a 12.2 per cent increase in spending during 2012.
This would bring overall revenue closer to the $37.7 billion mark, highlighting the increased strength of local online retail markets.
The results are based on information spanning the entire e-commerce sector, which includes domestic online retail, imports, auctions, online ticketing and travel.
Experts are also suggesting that growth in spending and increased revenue may be a cyclical phenomenon.
This means that as more stores open, shop online consumer confidence in their product range, as well as financial or credit security goes up, which in turn boosts sales.
Group buying websites such as Spreets, Groupon and Living Social have also had a major impact on the online retail market.
By pushing both on and offline sales – customers buy coupons in a virtual space and then redeem them in-store – the companies are reinforcing traditional markets while also opening the doors to shoppers to the world of online transactions.
And the results speak for themselves with new statistics showing that 97 per cent of Aussies online are using the internet to buy products and services.
The strong e-commerce results present a great opportunity for local retails to capture market share by promoting their brand online.
They may also benefit from fresh content – updated on blogs, social media networks and websites as a way of pushing organic traffic onto their site, which may lead to increased sales.
Posted by Aimee McBride