Online Retailing Stuck In Dark Ages Says Report
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According to a report by consultancy, The Leading Edge, Australia is seriously lagging behind the rest of the world in the uptake of online retailing.




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The report based on a survey of 1215 Australians found the amount of people actively buying online has “stagnated and those who aren’t buying already have no intention to start anytime soon”. 
Whilst some may blame Australia’s lack of broadband functionality, the research shows the real reason for the stagnation is traditional bricks and mortar retailers standing in the way of their own success in the online retail environment. 

Phil Bonanno, director of retail at The Leading Edge says that:
“Many Australian retailers have deprived the online environment of serious investment and focus.  Retailer sites in Australia are little more than catalogue pages on the web.  Few sell anything online and most offer no integrated services between stores and sites.  Most websites lack innovation, fail to engage the consumer and offer nothing new or exciting.  In effect, Australian consumers are being short changed and given no reason to alter their purchasing habits and spend more online.”

The survey found the key barriers to further uptake were consumer’s fears regarding a retailer’s return policy (47 per cent) and delivery charges, (32 per cent).  A lack of integration between a retailer’s traditional bricks and mortar business and its online business is barring significant change in consumer attitudes.

 

 

“If Australian retailers were serious about their online business, growth could be revolutionary rather than the slow paced evolutionary we are currently experiencing.  Online is the fastest growing retail channel globally, so the opportunities for Aussie retailers are huge”, says Bonanno.

However, according to the most recent population survey by the Australian Bureau of Statistics, 61 per cent of Australians shopped online during 2006/2007.  The survey found the Australians who are currently shopping online are doing so at the popular retailers set up specifically for online shopping. EBay took the top spot with 4 out of 5 Aussies who have purchased online admitting to using this website.

 “For the larger retailers the focus needs to be on significant changes in what they offer and how this is integrated with their store-based presence. Respondents to the survey demonstrated a willingness to consider purchasing more strongly in categories that are more ubiquitous and don’t necessarily carry a tactile need to drive purchase. Those categories include whitegoods, electronics and furniture”, said Bonanno.

 

 

For many traditional retailers who will not sell online, online growth could take a different form where the website drives consumers to the store with a higher intent to purchase.  The leveraged online presences would also build loyalty to the retail brand and the categories sold, the study concluded.