The end of another financial year is nearly upon us, and that means shopping time for many consumers as retailers start discounting their goods to get as much stock as possible out the door by 30 June. Sales are not exclusive to traditional bricks and mortar stores, and shopping online can also net you some extra special bargains this time of year.
The amount of money Australians spend shopping online is growing quickly. eBay-owned payment company paypal integration predicts online retail spending will reach nearly $34 billion in Australia by 2012.
That's nearly 50 percent more than the $23 billion spent shopping online in 2008. A report by the Australian Centre for Retail Studies (ACRS) last year indicated that approximately 36 percent of Australians buy something online once a month, and six percent are shopping online once a week.
Shopping online can offer significant discounts over traditional stores. Whether you are in the market for electrical appliances, sunglasses, bed linen or children's toys, you can often find them all in one online store.
Large online retailers, such as Only Online (oo.com.au) offer a massive range of goods, ranging from mp3 players, digital photo frames and LCD TVs to handbags, ladies' watches, kids' toys and cookware, at discount prices every day. And at sale times, such as the end of the financial year, savings can be compounded. Plus there is the convenience factor; online stores never close, and you don't need to leave home to find whatever you are looking for. Savvy consumers may even use the end of financial year as a smart time to go shopping online to stock up on birthday and Christmas presents.
Despite counting the dollar spend in the tens of billions, shopping online actually makes up only about three percent of the total retail shopping spend in Australia. This puts Australians' online shopping behind comparable places such as the UK and USA where rates are double that or more. Commentators say this is because other countries have embraced and invested in online shopping much more seriously than Australia, and that this is linked to the fact that around 40 percent of Australia's online shopping spend goes to overseas stores.
However analysts predict growth in shopping online will accelerate more quickly as new media channels such as smart phones and social media play an increasing role in consumers' lives. For example, the ACRS says the number of consumers who access retail websites through their mobile phone has grown from 24 percent in 2010 to 33 percent now; a massive growth in a short period. Innovative online retailers who are committed to continuous research and investment will be one step ahead of those who are still grappling with how to integrate potentially lucrative online shopping with their existing business.
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