Australian consumers are shying away from international online retailers if the recent NAB Online Retail Sales Index is anything to go by.
Domestic retail accounted for almost three-quarters (73%) of total online sales in Australia in January 2013, and domestic online retail sales saw a higher year-on-year growth than international, rising 28% vs 25%.
Online sales as a whole also improved in January, seeing a 27% year-on-year rise to hit A$13 billion. But unfortunately traditional retail sales only saw a 0.4% growth year-on-year.
Tiernan White, retail sector head and head of NAB Corporation (NSW), said these latest results show the strength of online retail and highlight how local retailers are beginning to adapt.
It’s clear that our domestic retailers are now fully comprehending the potential of the online retail channel. Our latest Online Retail Sales Index reveals that this constituency, who account for almost three quarters of sales, have continued to record strong growth in recent months and outpace international sales growth.
The key for retailers is to ensure their online offering complements and supports their core business. Successful retailers are providing their customers with alternative ways to shop. In return, the retailer can generate additional sales activity not based on store-wide heavy discounting. Retailers are also adopting live inventory management techniques to fulfil sales and enhance stock turnover.
Online retail in Australia is notoriously aggressive – and the state of the landscape is well-documented on a regular basis.
The infographic below offers a further snapshot of the key findings from the latest NAB report, showing how online is continuing to shape the Australian marketplace.