A new study by BIS Shrapnel, "Fulfilment Practices in E-tailing", claims that online retailing in Australia could reach an average annual growth rate of 64 percent, increasing from about AU$410 million in 2000 to AU$1.5 billion in 2002, and up to AU$4.8 billion by 2005.
There are, however, some threats which could hinder the growth of e-tailing.
Gary Long, consultant and principal author of the report, says one overriding threat is the inflexible delivery service offered by couriers, who will only operate during business hours. The current economic downturn is another factor influencing the success of online retailing.
Long believes this has generated uncertainty and will demonstrate whether consumers are committed to e-tailing. The e-tailing report is mainly concerned with the fulfilment models used by online retailers, and assesses the quality of the services provided by the logistics industry. It states that the fastest growing sectors are supermarkets, department stores, electrical goods, books, and adult products.
Long also warns that, "if online trading is perceived as a novelty, and people take a more conservative position financially, the results could be devastating.
"But if the industry survives, as I believe it will, it will prove that consumers do not perceive it as a novelty." He also asserts that the continued success of e-tailing can only be assured if there are benefits for customers. "The most significant benefit appears to be the convenience provided to higher socio-economic consumers with increasingly hectic and 'time-poor' lifestyles".
