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Local Businesses Told to Compete Online
New research reveals the real reasons Australian online consumers are buying from overseas-based websites – and surprisingly, it’s not for the cheaper prices.
A recent survey of 1,500 online shoppers revealed that Australians are shopping on the internet due to greater choice rather than cheaper prices, suggesting that more domestic retailers need to get online, reports the Sydney Morning Herald.
Nearly one third of all respondents indicated that the main reason they shopped offshore was to buy goods not available locally, while only 19% said it was because these sites were cheaper – a similar number to those that said they shopped internationally for a greater choice of products.
The results also found that 23% of respondents purchase only from Australian websites, while one third of those surveyed believe it is safer to shop domestically.
“Our research paints a positive picture for domestic retailers,” says Frerk-Malte Feller, Managing Director, PayPal. Feller believes if local businesses can get their online strategy right, they can compete with international rivals for the growing online dollar.
While delivery still proves to be a big hurdle for online retailers, Feller predicts that over the next few years, many businesses will invest in distribution networks , in order to capitalise on the growing online market.
- PayPal commissioned research by Forrester Research shows Australians are projected to spend $26.86 billion online this year, up from $24.02 billion in 2009.
- Travel is the most popular online shopping segment ($6.5 billion in 2010), followed by groceries ($5 billion) and home appliances ($2.7 billion).