Over the next five years, it is anticipated that Australians’ online spending will rise to approximately $10 billion, leading both large and small retailers to strategize for a portion of this market.
Despite significant advancements in the ease and security of online shopping, experts note that consumer behavior continues to evolve as individuals reconsider what items they are willing to purchase online.
In addition, quicker parcel delivery times are expected to entice more consumers, resulting in an increase in sales over the next decade.
This week, Australia Post highlighted the growth of online shopping as a key factor for its rise in annual profits, while the volumes of traditional mail have experienced a decline.
The government-owned entity forecasts that spending on its delivery services will double in the next five years, predicting parcel revenue could reach nearly $2 billion by 2015.
These predictions come alongside optimistic estimates from IBIS World, which indicated that revenue for Australian online retailers is projected to grow by 8.6 percent annually over the next five years, reaching $10 billion.
According to Russell Zimmerman, president of the Australian Retailers’ Association (ARA), the rise in online retailing, which constitutes about five to six percent of total sales in Australia, is driving significant changes within the industry.
“As delivery speeds improve and competition within the parcel delivery sector increases, I believe we’ll witness the evolution of internet retailing, making it stronger and shifting its trajectory,” Mr. Zimmerman commented.
In more established markets like the United States, online retail represents approximately 12 percent of total sales.
Data revealing that 70 percent of Australia Post parcels ordered online were shipped domestically suggests that consumers are increasingly comfortable with local online shopping.
