A Brave New World
EVER heard of E-comm? It sounds like a Star Wars character or the latest nonsense from LMFAO. It’s neither.The term is short for e-commerce and refers to buying and selling goods and services via electronic systems. E-commerce and the internet have come together to create an amazing new world in the past few decades. This edition of Business West we look at online retail, using two businesses from the West as case studies. The results are surprising. The risks can be high but the rewards are astronomical. Using the internet to garner customers and conduct transactions is no longer something that businesses can afford to ignore.Recent Google statistics revealed 52 per cent of Australia’s small businesses now have websites, up from 35 per cent at the same time last year.The evidence is all around us. These days you can be waiting at the train station, swipe a billboard with your smartphone, purchase the advertised product and have it delivered to your home, all while waiting for the 8.02am from Werribee station (chances are it will be late, but that just means you can buy more stuff). There’s even a name for that – mobile commerce. It’s tough to keep up as a consumer let alone a business.Recently Australia Post unveiled its first Melbourne office open 24 hours a day seven days a week. Why?“In response to record numbers of Victorians shopping online,” the Australia Post statement read.Possibly the greatest indicator of the shift in consumer behaviour is the success of online market place eBay. Make no mistake, eBay is not just for selling your old Nickelback CDs. There is real money to be made. The exponential growth of the site is highlighted by statistics released in March this year, which revealed their top 2000 “eBay sellers” reported a revenue growth of 45 per cent. They now boast 157 eBay millionaires, with 63 per cent of top Australian eBay businesses “optimistic about 2012” and the prospect of hiring more staff.“Retailers on eBay were some of the first to recognise the growth opportunities of online retail and have continued to innovate, adapt and integrate multi-channel business models to stay ahead of their competitors,” eBay Vice President Deborah Sharkey said.The advancements in technology and increased consumer confidence in online retail has also given SMEs something that in the past was out of their grasp – global reach. So if your business hasn’t jumped online yet, maybe it is time to look at what you are missing out on, before it is too late. And if you are online, is your site mobile friendly?It is the way the world is heading and businesses embracing the medium are thriving. On the flip side, those ignoring the shift in consumer behaviour are getting left behind. Behemoths Myer and David Jones are prime examples. It’s worth thinking about before you’re consigned to the bargain bin along with the Nickelback CDs. [BW]
Tim Doutré
tim.doutre@starnewsgroup.com.au