The online shopping market has boomed, with the number of Australians spending more than $1,000 a year on the online marketplace.
According to research firm Gartner, online shopping is expected to grow at a CAGR of 2.6 per cent in the year to March 2017, which is up 10.4 per cent on the previous year.
The Gartners report has been released ahead of the release of the National Retailers Association’s (NRMA) annual report on the state of the retail industry.
While many Australians continue to shop at their local big box stores, the online sector is now booming.
While Australians have been spending more and more on the internet, Gartens report suggests there has been a “significant rise in the number purchasing online from non-retail sources, which has been largely driven by people who are shopping for other products such as personal care products”.
It also revealed that online sales grew by a whopping 6.4 million in 2016, the fastest growth in the past decade.
“The digital economy is changing the way we shop, with many people moving to online purchasing because they are willing to pay higher prices, or choose online because they have no other choice,” Gartener managing director Paul Blatt said.
“These trends will continue to accelerate as consumers shift to more online purchasing.”
While it is easy to see why online shoppers have become a significant segment of the Australian economy, there is also evidence that this trend could be driven by an increase in the retail spending of Australians with higher incomes,” he said.
“However, it is not clear how the increased spending by non-Retail-based consumers has translated into increased sales for the retailers. “
Although the average price of a single item was $599 in 2016 in Australia and $1125 in New Zealand, online retailers have increased their average price per sale by 50 per cent,” the report found.
According to Garteners research, there were more than 3.3 million Australians who used online shopping in 2016. “
In 2016, retail spending on online was more than double the spend by non‑Retail consumers, suggesting that this was an advantage to the retailers.”
According to Garteners research, there were more than 3.3 million Australians who used online shopping in 2016.
About 1.5 million Australians were also spending more per month on their shopping trips compared to 2016.
“While the online shopping industry has continued to grow, this growth is not yet translating into the kind of revenue it used to, as it has not been able to meet the growth expectations of retailers,” the NRMA said.
Retail industry is booming online A report released by the NRMAs chief executive Andrew Scott today said that the retail sector is booming and the online market is also booming.
It’s an area where Australia has been lagging behind in the online industry. “
We are seeing the rise of online retailers who offer their customers products that are more accessible, more accessible than ever before, and who have a clear view of their business model,” Mr Scott said.
It’s an area where Australia has been lagging behind in the online industry.
Last year, online retail accounted for just 1 per cent of retail sales in Australia.
But with the growth of online shopping, the NRMs report noted that the proportion of Australians who buy online has increased from less than 20 per cent to over 30 per cent.
“This is a great sign that the digital economy of our nation is delivering for consumers,” Mr Blatt added.
“As we look ahead to the year ahead, we are confident that the new and innovative retail strategies and digital products we have developed for Australians will be able to deliver an exciting future.”
Mr Blatch said that online retailers were being challenged by technology and growing competition.
“Online retailing will be challenged by new and disruptive online businesses in the years to come,” he warned.
“And while we recognise that we need to continue to build our business models to meet consumers needs, it also makes sense to develop our business model around the growing needs of Australians.”
Mr Scott says that the Australian Retail Association’s vision for the future is based on delivering “a truly global retail experience”.