Christmas is coming. Yes, believe it or not, it is only 11 weeks away. With everyone so busy in their own lives, workloads increase and the social calendar becomes full of barbeques and parties. So, with no time to get to the local shopping centre and no patience to battle the carparks which somehow turn into warzones, Australians are now staying put at their desk and doing their Christmas shopping online. No running around in circles. No queuing. No fights in the carparks.
Christmas shopping is merely a click away. Retail sales are positively affected by strong online trading in the lead-up to Christmas. Those business that sell their wares online are reaping massive rewards at Christmas. In 2004-05, the online industry generated revenue of $11.59 billion, representing an increase of 10.4 percent compared to 2003-04. However, according to The Sunday Telegraph (28/11/04), online sales in this period were expected to be buoyant, largely due to increased consumer confidence about ordering over the Internet. In recent times, consumers have become more comfortable about ordering online air tickets and conducting Internet banking, which boded well for this industry.
In March 2005 alone Australians are reported to have spent $617 million in products and services purchased via the Internet. This places Australia as the third largest online shopping country behind US and Britain. According to data by Visa International, consumer spending on goods and services via the Internet increased by 38.0 percent to March 2004, (Source: SMH - 28/4/2005). With an average transaction of $142, online sales are estimated by ACNielsen to be growing at a faster rate than internet usage in general. Analysis indicates that in the six month to March 2005, the number of Australia's buying online rose by almost 9.0 percent, to reach 4.2 million online shoppers.
The strong growth in use of the internet to place orders for products and services is reported to stem from a rising confidence in the security and technology utilised. IBISWorld estimates that the online industry generated revenue of $13.13 billion in the twelve months ended June 2006. During 2005-06, industry gross product is estimated to have reached $1.6 billion. According to Industry Search (10/1/06), 'almost one in three small businesses recorded an increase in their online sales in the lead-up to Christmas'.
This boded well for the electronic shopping segment of this industry. IBISWorld estimates that industry sales during this period were supported by continued acceptance of the Internet as a viable alternative to traditional shopping. According to the SMH (4/2/06), research by Nielsen/NetRating Australia, ' Australian's spend...$2.4 billion shopping online in the three months ended December 31 2005'. This tends to suggest that consumers have overcome their initial fear of using credit cards online. Ironically however, the internet was also used to dispose of unwanted Christmas presents. The industry is reported to have experienced a 'boom in online sales from people selling unwanted Christmas gifts'.
Research by eBay indicates that Australian's spent over $700.0 million on unwanted Christmas presents (in 2005) compared to $685 million in the previous Christmas period'.