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Aussie retailers risk falling behind online

Australian companies are falling behind in e-commerce and online shopping, according to a new report by global information company Experian Marketing Services.

The survey involved marketing professionals from retailers in a number of industries, including automotive, sports, groceries, health and beauty, office supplies, fashion and apparel.

On the way up

Of the 300 Australian retailers surveyed, Experian found that 53 per cent had no online sales channel, and only 37 per cent have transaction or shopping cart functionalities in place – an alarming fact given Australians spent almost $12 billion online from January to August this year.

Consumers are flocking to the internet and showing no signs of slowing down, with a 22 per cent increase in online spending in the year to August, compared to a 1.6 per cent growth for in-store spending in the year to July.

Social sales

Social media has also fallen by the wayside for retailers, with 54 per cent of retailers ignoring Twitter while 47 per cent aren’t on Facebook and likely won’t be in the near future.

With almost 12 million Facebook users throughout the country, there is room for brands to enter the fold and engage their customers through the social network.

52 per cent of marketers have no plan to integrate customer databases to their website, similar to what Facebook introduced recently for targeted advertising.

Traditional traffic rules

Outside social media, the influence of digital marketing has yet to make its way through to Australian retailers.

Reflecting the slow take-up of online sales channels, only 57 per cent of marketers felt the online side of their business was a priority while 91 per cent of marketers spend little or ignore e-commerce in their budgets.

A little over half (51 per cent) of the retailers surveyed said their marketing strategy ignores search engine optimisation, and 61 per cent don't expect to use paid search.

Just 45 per cent of marketers said they use online vouchers and only 17 per cent offer discount codes – two aspects of online shopping that consumers generally appreciate.

Success stories

While Experian’s report shows a number of retailers are hesitant to sign up, there are brands who have embraced e-commerce and social media effectively.

Lorna Jane have an online sales channel offering free postage and discounts, while they have almost 500,000 Facebook fans and active Twitter and Instagram accounts.

JB Hi-Fi is one of Australia’s biggest online retailers, regularly updating their website with promotions and sales and having success engaging their 315,000 Facebook fans.

Online shopping and e-commerce have benefits for consumers through instant shopping from home, and retailers with an additional sales channel to increase the bottom line.

To download the report and view it in detail, click through to Experian's website here.

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