How and why are Australians buying online?

Understanding how and why Australians are buying online can help you develop your digital strategy or think about how to maximise your online presence. A report published late last year by the Australian Media and Communications Authority (ACMA)—Australia in the digital economy: Consumer engagement in e‑commerce—may provide some insights to keep in mind as you think about how to get the most out of your digital business efforts in 2011.



The ACMA report contains the following key findings:

• Eighty-eight per cent of Australian household internet users had performed at least one e-commerce activity in the preceding six months.
• The type of activity varied, but the most popular activities were banking, paying bills, buying goods and services, and booking accommodation and travel.
• Convenience, rather than cost, was by far the most frequently cited attraction of purchasing online. Other commonly-cited reasons for purchasing online include cheaper prices, a better range, access to goods not available in shops and deliveries to your door.
• Australian online shoppers said they used Australian websites more often for online purchases of goods and services than overseas sites. A significant proportion of respondents said they want to support local industry.
• The most frequently-given reason for purchasing from overseas sites was that an offering was not available in Australia. The other main reasons cited for not buying from Australian sites were that overseas sites were substantially cheaper and that they offered more variety.

Consumer attraction to convenience highlights the importance of making the online purchase process as easy as possible and of emphasising that convenience in your marketing. Some examples of convenience you may wish to explore are whether to offer customers faster delivery, the ability to pick up items purchased online from a retail store to save on shipping, or a more convenient returns policy.



A relatively low proportion of people report a preference for purchasing from Australian sites due to their better range, better quality or better follow-up service. These may be areas that Australian businesses could do well to explore to identify more innovative approaches.



Evidence from the survey about why some people are not purchasing online at all can help you think about ways to finetune your online presence.



Lack of trust in the internet was the most frequently-cited concern. On our online payments section you may find ways to improve the trustworthiness of your e-commerce website.



Other reasons given relate to people preferring to buy in person, not having a credit card or preferring to not give credit card details online. To overcome these barriers to sales, you could consider making your products or services available offline and offering alternative payment methods for people who do not want to shop online with a credit card.



What did you find most interesting in the ACMA report? What are your digital business New Year’s resolutions for 2011? Tell us in the comments field below.



By Reid, DBCDE