Industry Analysis & Industry Trends
Online retailing has changed the face of the Australian retail sector, representing a paradigm shift in the way consumers make transactions. While the industry is in its infancy, both technologically and monetarily, it has grown dramatically over the past five years, to become part of the mainstream consumer's psyche. This has been aided by the equally rapid growth in internet and broadband penetration, combined with an acceptance of electronic commerce as a viable and safe alternative to traditional bricks-and-mortar retailing.
The industry has benefited from consumers seeking choice and value, particularly as discretionary spending and overall consumer sentiment have declined... purchase to read more
Industry Report - Industry Investment Chapter
The Online Shopping industry exhibits a moderate level of capital intensity. IBISWorld estimates that for every dollar spent on depreciation, $7.88 is spent on wages. The capital and labour costs of running a retail business online differ from the traditional retail method. Real estate costs are generally lower for online businesses, but significant investment is required to create and maintain a high-quality website. Heavy investment in e-commerce technology and innovation in the online trading market is expected to contribute to increased depreciation costs.
The technical expertise required to undertake online retailing generally calls for employees with non-traditional skill sets, some of which can command high wages... purchase to read more