e-tail sales set to boom: PayPal

July 7, 2010 – 2:26PM

Australia’s online retail industry is set to grow 40 per cent by 2012, PayPal Australia says.

The e-commerce business, which enables payments and money transfers to be made through the internet, said large Australian retailers such as Big W had extended their presence online, providing a boost to the industry.

Online retail in Australia is forecast to reach $33.8 billion by 2012, up from $24 billion last year, according to research commissioned by eBay, which owns PayPal.

However, PayPal Australia managing director Frerk-Malte Feller said while the industry was growing, it still lagged behind the rest of the world.

Australia’s domestic retail spend online is half of what it is in countries such as the UK and US, he says.

“As Australian retailers struggle to build effective online presence, overseas competitors are taking advantage of the gap in the Australian market and are currently taking around 40 per cent of Australia’s online retail spend,” Mr Feller said.

“There is a huge opportunity for retailers to capitalise on the growing online marketplace in Australia.

“In the last six months alone the average consumer spent $1,223 on online shopping, an increase of $130 from the second half of 2009.”

Several factors were been responsible for the slower uptake of “e-tail” among Australian consumers, he said.

Some consumers are worried about shipping costs, long delivery times and poor selection of items available in online stores.

Other are more concerned about the security of transactions, which remains the number one concern to consumers shopping online.

The annual Online Retailer Expo and Conference is underway in Sydney this week with more than 3,000 delegates registered to discuss the future of e-commerce in Australia

AAP


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