A recent online retail report conducted by eWAY has revealed significant growth in online transactions.
From January to June this year, Australian consumers spent a total of $9.3 billion on purchases over the internet. This figure represented a 21.5 per cent increase in transactions during the same period last year.
In office equipment and supplies, the change was even more substantial with a 57.8 per cent increase from the previous year. This was spurred due to recent changes in tax law, where small business can now claim instant returns on purchases under $20,000. The spike in office sales shows that businesses that engage in e-commerce must be especially sensitive to changes to the business environment, due to the instantaneous nature of e-commerce.
While e-commerce has its challenges, Australian SMEs could find themselves in a favourable position to start engaging with this platform. This is an effective way for traditional brick-and-mortar companies to expand their product offering to markets overseas without the need for more time-intensive or capital-intensive methods.
In ATKearney’s 2015 Global Retail E-Commerce Index, the Asia-Pacific region was predicted to become the largest in the world in terms of online sales. This shows the great potential for substantial gains in both domestic and internal sales, channelled through the right database software. The Australian market itself placed 10th in the list of countries ranked as the most attractive online market places in terms of size, infrastructure and consumer behaviour.
These strong indicators are especially favourable to Australian retailers. With a deep understanding of their native consumers, traditional brick-and-mortar businesses in Australia could benefit from their home market trends and develop a strong core brand. Utilising e-commerce strategies in Australia provide a valuable platform for businesses to enter and eventually stand out the global online market.