Online Retail Spending Statistics - 2007

$243 Billion will be spent with online retailers in the U.S. alone this year.

Gone are the days where people would only use websites to check emails and do research. Now, with broadband access to almost 50% of the US and rocketing figures in Australia, (that's 140 million people using high speed Internet) websites have the ability to serve up an experience and not just content.



It's primarily the experience that continually entices customers to make the plunge online. But it's also the little things like;

• The Effectiveness of Online Advertising
• More User-friendly Websites
• Greater Online Security
• Cheaper Product Prices Online
• More Diverse Payment Methods
• Easier Price/Product Comparisons.
• Our Time Poor Lives

One thing yet to catch on in Australia is the range of online stores. Retailers still seem to be stuck in an age where that customer coming through the shop front in their only chance and their websites should just be used to direct customers to the store.

Quite simply, their businesses will suffer in the next 2-3 years if they don't catch on fast. There will always be the people who do their research online, get the prices and go in store to make the purchase.

Those days are numbered for an increasing % of consumers, with the decrease in spare time for shopping and easier access to money - we will see consumers turn online in record numbers to make purchases over the next few years.

Retailers shouldn't have anything to fear by setting up an ecommerce store, the worst that can happen is people use your online store for research/pricing and end up purchasing instore. Sure, you invest big $$ in your rent with a shopping center like Westfield, hell - you even pay more based on how much money you make (shouldn't everyone?!).

It's time retailers in Australia woke up to the potential of Online Stores and invested in their future - cost and risk are minimal, while the upside potential multiplies each year by increasing factors. Last year (2006), in the U.S. alone a staggering 35% of all Internet users made online purchases, which is expected to leap dramatically this year.

While we might not have the appropriate range of online stores in Australia, that doesn't stop us buying online - another thing that Retailers should be looking at is the latest stats from Roy Morgan stating that 36.20% of all Australian Internet users have purchased something online.

Chances are, they bought it from the U.S. or UK. Another worrying factor for some, while for others it's a golden opportunity to get into the coming online retail boom in Australia. Have you ever bought online? Do your favourite retailers sell online in Australia? Would love your comments on this.