The latest analysis from consulting company Frost & Sullivan shows that, when it comes to the adoption of eCommerce, Australia continues to lag behind the US and UK markets by three years. High domestic postage costs and a smaller population are a couple of factors driving the slow rate of growth down-under, but it also shows there are opportunities for companies to develop more business online, particularly when we consider that many people are buying online from overseas sites.
Frost & Sullivan estimates total consumer e-commerce expenditure in the 2010 calendar year (excluding online services such online ticketing and events, travel, music downloads and financial services) will reach $12 billion. That’s just 3 percent of total domestic retail sales. They’re forecasting moderate annual growth of just 10 percent over the next four years.
I ask Phil Harpur, Senior Research Manager at Frost & Sullivan, what other factors might be driving this slow take-up, and what you need to do to secure your place in the eCommerce marketplace.