According to Eljo director, Jonathon Green, Australian online retailing is winning consumers' vote of confidence on several fronts. These include the pitfalls of purchasing electronics from overseas as highlighted in a news report by eStore CEO, Lorenzo Coppa, which include consumers' struggles to gain customer service and advice when dealing with overseas online stores, and the fact that local bricks and mortar retailers are operating under an outdated business model.
Green suggests that the fall in retail sales may indicate that the problems faced by Australian bricks and mortar retailers stem from inherent problems with the business model. "Aussie websites operate under the same tax system, and with the same exchange rate as any other company in the country, yet the sector continues to grow," he says.
According to Green, Coppa's belief that consumer behaviour is changing is well founded. Australian consumers are becoming more technologically savvy and comfortable buying online. Of particular interest are the changing demographics of today's online shopper. "Our customer demographic has been trending towards middle class Aussie mums and dads, many of whom are new to shopping online," suggests Green.
Online payments giant PayPal, via their ‘eCommerce: Secure Insight' report from Forrester Research and The Leading Edge, expect the Australian online retail sector to reach AU$36.8 billion by 2013, up from a forecasted figure of AU$26.86 billion for calendar year 2010.
