The Online retailers should have started experiencing a boom in the business as the customers prefer online stores to compare products and prices rather than crowded shopping centers.
Research by Hitwise has found that shopping websites like Emailcash Australia, Trading Post, eBay and Amazon have generated 6.34 per cent web traffic, followed by dealsdirect.com.au and oo.com.au, in the third week of November.
The figures indicate that web-based shopping has increased and consumers are now able to search, compare and buy products conveniently from their homes.
According to the Ecommerce provider Mr. John Debrincat from the eCorner, the traditional model of retail sales has changed. He says "We are seeing quarterly growth of nearly 50 per cent in the number of online stores being established, with most large corporations planning their Internet strategies at senior executive levels."
Mr. Debrincat added "With companies like News Corporation reporting online revenues of more than $1.2 billion, it's clear that organizations without skin in the game will be left behind by their competitors."
Key To Success
It is presumed that large retailer can successfully play online. In fact, small businesses can also capitalize on the trend either by establishing their own online stores or partnering with online shopping malls and comparison sites.
"The push to online sales in Australia and New Zealand has seen the arrival of new businesses like Getprice and Shopping.com in the comparison shopping area," says Mr. Debrincat, "Online marketplaces like Ferrit.co.nz are also providing a new shopping experience in the retail market."
Price is not the key factor for driving shoppers. They prefer trusted websites over unknown destinations. Getprice CEO Chris Hitchen claims that the success of online malls depends on the added value they provide to the consumers.
"Getprice's focus on comparison shopping rather than price comparison reflects the fact that it's not always the cheapest price that sells a product," Chris says.
He adds "While we recognize that price is a leading criterion for many consumers, other factors such as trust, reputation, a local manufacturer's warranty and add-on services are also important in winning custom from savvy consumers."
Global Market
European Ecommerce sales are anticipated to grow by 25 per cent per annum over the next five years, after reaching US$133 billion revenue in 2006. In US, spending online is expected to exceed US$200 billion this year with quarterly growth of almost 25 per cent.
The trend in Australia and New Zealand has been similar, but revenue base is comparatively smaller even though the Ecommerce sales has exceeded A$45 billion generated in 2006. Of this, the online transaction in New Zealand was only about NZ$1.5 billion.
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