Retailers to prepare for e-tail boom

14 July 2010

If a recent survey by PayPal is any indication, Australian fashion retailers who have not yet set up an online presence should do so, in order to prepare for a growth spurt in Australian e-tail.

PayPal, the company that facilitates payments and money transfers via the internet, has confirmed that Australia's online retail industry is set to grow by 40 per cent by 2012.

However, according to Fairfax digital media coverage, PayPal Australia managing director Frerk-Malte Feller said while the industry was growing, it still lagged behind the rest of the world, with Australia's domestic retail spend online equalling half that of countries such as the UK and US.

"As Australian retailers struggle to build an effective online presence, overseas competitors are taking advantage of the gap in the Australian market and are currently taking around 40 per cent of Australia's online retail spend," Feller said. "There is a huge opportunity for retailers to capitalise on the growing online marketplace in Australia."

"In the last six months alone the average consumer spent $1223 on online shopping, an increase of $130 from the second half of 2009."

Several factors were responsible for slower e-tail uptake among Australian consumers, he said, with shipping costs and long delivery times cited as reasons. However, the security of transactions remained the biggest concern to consumers shopping online.

 

 

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