In what could be good news for online retailers in Australia, new retail research has predicted that online retailing will account for almost ten per cent of total retail sales in the country by the year 2017.
According to information released by Frost & Sullivan, the online retailing market is currently tracking a strong performance, and at the rate it is growing, total online spending will reach around $18.3 billion by the end of this year.
The average amount that each online shopper in Australia will spend per year is $1,750, with this figure expected to increase or be maintained over the next 12 months.
This increased spending for the online market presents businesses in Australia with a great opportunity to take advantage of the online retailsphere and the benefits that it has to offer.
“We expect continued growth in online sales over the next five years with a Compound Annual Growth Rate (CAGR) of 13.1 per cent. Online sales as a percentage of total retail sales are predicted to increase from 7.0 per cent in 2013 to 9.8 per cent by 2017,” said Frost & Sullivan senior research manager for Australia and New Zealand Phil Harpur.
“Customers have become more comfortable with the online shopping process, including reduced concerns over security and higher levels of confidence in the delivery process, which helps drive growth in online shopping.”
The strength of Australian dollar in recent years has allowed the purchasing power of many Australians buying from overseas websites to be at a good level. However, the recent drops in the last couple of months may direct the focus of shoppers to more domestic sites, as international purchasing power begins to decrease.
Mr Harpur stated that in the last two years, the number of online shoppers in Australia buying from domestic retailers has increased from 21 per cent in 2011 to 29 per cent in 2013.