Amazon is planning to expand its online presence in Australia. Plans for the “Amazon Go” convenience stores in Australia were canceled. Australians spent $21.65 billion in online sales in 2016. This is only 7.1% of the sales in physical retailers in that country for 2016. Australia’s dollar is relatively weak so most of the online shopping was at Australian retailers. Ecommerce has actually slowed in growth worldwide. Department stores and grocery stores are starting to catch up with traditional online businesses. The challenges to growth of online retailers include habits of shoppers, worry about fraud, inability to touch and try on products, and frustration with long delivery times. Amazon is strong in the United States and Europe due to fast delivery times and convenient service. This may not work in Australia because people do not live in concentrated metropolitan cities on that continent. The population is very spread out.
- -As far as online grocery shopping is concerned, research has shown that only 3% of consumers shop online for their food and groceries.
- -Many consumers still avoid online shopping, concerned about credit card fraud, quality and returns policies. Not being able to touch and try on before purchasing presents a real barrier to ecommerce,
- -Shoppers are creatures of habit. We generally shop with the same retailers, buy the same brands and spend a similar amount of money every month. Research has demonstrated that infrequent online shopp
“Globally, growth of online shopping has slowed as department stores, supermarkets and other retailers saturate this channel.”