What are you going to do when you’re not busy? Online sales are on the rise, according to a survey
The online marketing industry is on the up, with companies like Amazon and Facebook spending hundreds of millions of dollars to promote products online.
Key points:The study found sales of car,home and lifestyle products jumped 10 per cent in the year to March 31.
The majority of online sales were from cars and the biggest gainers were luxury products.
“The growth in the online retail space has been tremendous in the past year and we’re now seeing that it’s going to be a significant part of our business going forward,” said John Haggerty, a director of research at research and consulting firm Euromonitor International.
“It’s also very evident that we’re starting to see a lot of products, particularly the cars and luxury products, going online in Australia.”
He said while there were some key differences between the two sectors, the key difference was that consumers were increasingly looking for value, and were willing to pay for that with online sales.
“They’re looking for convenience, they’re looking at value for money,” he said.
“When you look at the value proposition of buying a car online, it’s an interesting question and it’s a question that’s going in a lot more places than just the US.”
But I think it’s pretty obvious to most Australians that they want to be able to get a car or a luxury product online.
“Online sales of cars and cars, home and luxury items grew by 10 per a cent year-on-year, up from 6 per cent a year earlier.
While that’s still a small increase, it is a significant rise.”
That’s huge,” Mr Haggerity said.
The rise in sales comes despite the fact many retailers are still wary of giving in to pressure from consumers, with many citing the threat of lawsuits and a drop in profits as factors.”
People are going to see online sales as a more viable way of earning money and the only way that they’re going to have that is if they’re buying through a reputable retailer,” he added.”
So if you can make a purchase online, you’re going be rewarded for that, but you can also expect to be penalised if you don’t have the money to pay.
“You can be penalized if you’re buying a product that doesn’t come from a reputable manufacturer.”
Consumer confidence among Australians is also at an all-time low, with the Bank of America Merrill Lynch survey showing consumer confidence dropping to its lowest level since the Great Depression.
Online retailers are also worried about their bottom line, with consumer sentiment plunging for the second consecutive month.
“There’s a concern amongst retailers that it will slow down their ability to operate and that they’ll be in a bit of a bind for the next couple of years, particularly given that they’ve got a lot riding on it,” Mr Friesen said.
He warned that as demand for online sales continues to increase, retailers are going the extra mile to ensure their products were available online and available quickly.
“We see that it is very important that the retail industry has strong consumer loyalty, it has to be available quickly, and retailers have to be on top of their game,” he explained.
“If they can’t do that, then they’re in trouble.”
Online shopping continues to be an increasing source of growth for the online sales industry, with online retailers earning a total of $4.3 billion in revenue last year.
“Retailers are taking advantage of this opportunity to take advantage of consumers, and it seems like every year that we see a bit more online retailing happening,” Mr McBride said.