Online retail off-putting for Australians 9:36am 2.04.08

Research by The Leading Edge consultancy indicates that the number of Australians buying online has plateaued. While the Australian Bureau of Statistics states that 61 percent of Australians shopped online in the 2006/07, The Leading Edge found that those who aren’t buying already don’t intend to start.

Australia’s internet capability is one obstacle, but director of retail at The Leading Edge, Phil Bonanno, says it’s also the traditional physical retail outlets that stand in the way of their own success online.
 
“Retailer sites in Australia are little more than catalogue pages on the web. Few sell anything online and most offer no integrated services between stores and sites,” he says. “Most websites lack innovation, fail to engage the consumer and offer nothing new or exciting. In effect, Australian consumers are being short changed and given no reason to alter their purchasing habits and spend more online.”

Other key barriers included consumer fears about a retailer’s return policy and delivery charges.

“Overseas, Tesco, Wal-Mart and Costco are leading the way with online sales exceeding $US1 billion per year. These smart traditional retailers have perfected the online–offline integration where customers can buy online and pick up or return in store,” reports Bonanno. “Savvy Australian retailers should be watching keenly and moving quickly."