Almost 10% Web Traffic From Online Stores
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Web-based retailers should have already begun to experience a boom in business with consumers choosing to avoid crowded shopping centres, instead comparing products and prices online at sites including Amazon, eBay and Trading Post.

Shopping websites accounted for 6.34 per cent of web traffic in the second last week of November, with Emailcash Australia, Trading Post, eBay and Amazon leading the pack followed closely by dealsdirect.com.au and oo.com.au, according to research from Hitwise.

The figures indicate an increase in web-based shopping, suggesting consumers now expect to be able to search, compare and buy from the convenience of their home. Ecommerce provider, eCorner, says the traditional model of retail sales has changed.

“We are seeing quarterly growth of nearly 50 per cent in the number of online stores being established, with most large corporations planning their internet strategies at senior executive levels,” said eCorner’s John Debrincat.

“With companies like News Corporation reporting online revenues of more than $1.2 billion, it’s clear that organisations without skin in the game will be left behind by their competitors.”

Key To Success

But it’s not only large retailers with the excess stock that can play online, with small businesses also capitalising on the trend either by establishing their own online stores or partnering with online shopping malls and comparison sites.

“The push to online sales in Australia and New Zealand has seen the arrival of new businesses like Getprice and Shopping.com in the comparison shopping area,” said Debrincat.

 

“Online marketplaces like Ferrit.co.nz are also providing a new shopping experience in the retail market.”

It’s not only price that drives consumers however, with shoppers opting for trusted websites over unknown destinations. Getprice CEO Chris Hitchen says the most successful online malls will be those that provide the most added value.

“Getprice’s focus on comparison shopping rather than price comparison reflects the fact that it’s not always the cheapest price that sells a product,” he said.

“While we recognise that price is a leading criterion for many consumers, other factors such as trust, reputation, a local manufacturer’s warranty and add-on services are also important in winning custom from savvy consumers.” 



Global Market

European ecommerce sales are expected to grow by 25 per cent per annum over the next five years after 2006 revenues reached US$133 billion. In the US, spending is tipped to exceed US$200 billion this year with quarterly growth of almost 25 per cent.

The trend in Australia and New Zealand has been similar, but off a smaller revenue base with ecommerce sales exceeding A$45 billion in 2006. Of this, only about NZ$1.5 billion was transacted online in New Zealand, which has tended to lag the larger markets when it comes to ecommerce sales, says Hitwise.