Who is shopping online, when and what for? This review of shopping trends this holiday season will help you decide whether e-commerce is the way to go for your business.
The largest percentage of online sales occurs from late October to late December each year. Trends suggest more and more people are shopping online to save time and avoid the rushed crowds at major shopping centres.
Setting up an e-commerce shopping cart site raises questions about security, the costs and whether you will be able to reach your target market and sell large volumes online.
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Top 10 retail websites visited by Australians 8. www.petersofkensington.com.au [Source: Hitwise Australia - 03/11/2007] |
Australian internet users have proven they are more than willing to shop online with a steady increase in online shopping over the past five years.
Some 87% of Australian internet users have made a purchase over the internet (ahead of the global average of 77%). As a result, the e-tailing industry has grown to a $14 billion industry this year.
The largest proportion of online sales are in travel and accommodation with other popular items being books, music, clothes and computer software and hardware.
18 to 24 year olds are more likely to shop for entertainment such as music and computer games while 35 to 44 year olds are more budget conscious and visit price-comparison websites or sites such as Shopping.com.au, oo.com.au, FlyBuys and Myshopping.com.au.
Products suited to e-commerce include: software; printed or graphic material (e.g. classified ads, digital books); services not requiring human interaction (e.g. airline tickets); specialty niche goods (e.g. memorabilia); products for which the order processing costs are high (e.g. loan applications); and seasonal products (e.g. swimming pool shops).
Products not suited to e-commerce include: goods with a short shelf life (e.g. ice cream, bread or hamburgers); goods or services that require you to be at a particular location (e.g. petrol); and when transportation is difficult or costly (e.g. live animals, washing machines).
One of the top 4 fastest movers in online retail sites is www.crazysales.com.au which has had a big increase in Australian visits to the site over the 4 week period ending November 3, 2007. [Source: Hitwise]
An e-commerce website can reach potential customers outside your geographic area, make searching and cataloguing a large number of products easy and allow you to accept secure payments online.
Do you have an e-commerce website? Are you thinking of setting one up? Tell us your experiences via a comment.
Melissa Norfolk is an Internet expert who speaks to business, school and community groups about online marketing, email newsletters, effective use of the Internet, finding what you need online and Internet safety.

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11 comments | Add your own 1 2 | Next» View all»
I sell my book online - its the most efficient and low-cost way I know! Grant Hyman from Sydney | Read my articles
I run an online store selling handcrafted fair trade products from producer groups based primarily in Nepal, India & Vietnam. Building trust with customers who are buying this type of product online is vitally important. Its easy to buy a record or book online - you know exactly what you're getting. Not so easy with touchy, feely textile or fashion sector products. I find physical displays of our products at markets & events helps to bring people to the website. Once they make their first purchase online, the product and the service they receive has to be absolutely excellent - give your customers the respect and care that they deserve and they will be loyal. I now have many customers who have already purchased from me multiple times in this first year of business. Whilst its still important to keep building our core customer base, its much easier to keep an existing customer than to have to attract new ones all over again. Global Conduct - www.globalconduct.com.au Lisa Redmond from Broke NSW
I'd have to disagree about e-commerce not being suited to products with short shelf lives. One of our clients is VeggiExpress (www.veggiexpress.com.au) and the owner has made a fairly successful business out of delivering market fresh (literally picked up that morning at 4am) fruit, vegetables and other items such as fresh juices etc to people who ordered the day before. He could easily add breads to his product range and not have spoilage problems. You just need to ensure you have the infrastructure in place to deliver short life goods in an online market. Paul Robinson from North Sydney
Tickets, especially airline but not only, are by far very well suited for the online commerce. As you can very well see from these figures here
http://talkforeign.info/2007/09/14/get-your-ticket-now/
Joanna Mirch from Lexington, UK
I'd love some feedback about e-commerce for large ticket items. I design and have my range online though need to fine tune actual online selling.People often want to see, and experience. What do others find works for great large ticket items. Also what really works re. drawing attention to your product . I'm in the slowly but surely lane but my indicator 's blinking , I'm ready to go! Siita Rivas from Sydney
Any product can be suited to ecommerce, its more the process that you take the buyer thro and what you want to achieve. Hostingoz.com sets up ecomerce for sites that vary from cotton T towels to Manufactured sheepskin products ($100 - $400) in a international market to Pool Alrms ($400+ and even DIY glass brick kits that vary from $500 - $1500 in price range. The hardest product to sell would be the cheaper one. The process the buyer goes thro must make them feel they are in a physical location looking at the product., with the mirrors and trellis site i did not get any "touchy feely " experience, no sizes or comparisons, was the 1100 square 1100mm or 100mm ? I could not get a feel for it. There are a number of ways to get the sales process working but it must be easy for the average web client (which is not the website owner). Ian Partridge from Brisbane
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