Industry Analysis & Industry Trends
Online retailing has changed the face of the Australian Retail Trade division, representing a paradigm shift in the way consumers make transactions. The industry has grown dramatically over the past five years, to become part of the mainstream Retail Trade division. The rise of online shopping has been aided by the rapid growth in internet and broadband penetration, combined with consumer acceptance of electronic commerce as a viable and safe alternative to traditional bricks-and-mortar retailing.
The industry has benefited from consumers seeking variety and value, particularly as discretionary spending and overall consumer sentiment have been relatively weak. Online shopping offers unprecedented choice, as there are no geographical boundaries and prices are highly competitive... 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 invested in capital costs, $7.57 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 has contributed to increased depreciation costs over the past five years.
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