Online retail market nears $16 billion

By By Wenlei Ma | 6 March 2012

The Australian online retail industry is surging ahead with consumers spending nearly $16 billion on online shopping in 2011, according to Telsyte.

Australian consumers spent $15.9 billion on online shopping, representing a 64% increase from 2010. The figure is expected to increase to $30 billion by 2016. The study found between 8% and 40% of the money spent by Australian consumers was going to overseas retailers.

According to the analyst company, discounts and deals are fueling growth of the Australian digital retail industry.

The firm said technological advances and economic conditions have led to e-commerce retailers embracing the concept of discount online shopping.

Telsyte senior research manager, Sam Yip, said: “Retailers have spent the past few years trying to find the best way to drive their online strategy, and it is now evident that offering discounts is the main lever to get Australians to spend.

“We've seen the home pages of retailers shift from focusing on product range to discount specials, either through a dedicated clearance page, daily deals section, factory second lists, or pre-owned goods.”

The study discovered the top digital retail categories were travel, groceries and fashion, with the three making up 73% of the total online retail revenues.

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