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21
For those of you who enjoy the hustle
and bustle of shopping centres, take
comfort from seeing, smelling and
tasting your purchase, and if your
wishlist is still a handwritten note
stuck on the refrigerator, you are living
in unfamiliar times. Online shopping is gaining in
popularity with everything from groceries to sports
cars available via the click of a button. It may not be
as instant as an over-the-counter purchase, but for
those who can wait for the post or courier to arrive,
there are definitely benefits for the hip pocket.
Findings from the 2011 World Internet Project
show that a quarter of Australians are buying online
at least once a week, compared to 17% of Americans,
and a further 53 per cent are buying something over
the Internet at least once a month. Senior Research
Fellow with the ARC Centre of Excellence for Creative
Industries and Innovation (CCI) Scott Ewing says this
doesn’t mean that Aussies are necessarily spending
more online than in retail shops, but it’s clearly a trend
in consumer behaviour.
CQUniversity expert in consumer behaviour Dr En Li
says while it’s clear online stores are meeting the needs
of many shoppers, traditional bricks and mortar stores
who sell products that rely heavily on sensations – the
need to smell, taste or touch the products – will still
fare well. “The context of online shopping typically
only provides shoppers visual aspects of products, while
ignoring or not able to provide stimulations on other
sensory systems.”
Dr Li also warns that online shopping can be highly
distracting for some shoppers as many people try to
multi-task while shopping. “What we’re seeing is that
people are contending with moving banners, pop-up
videos and are also trying to check Facebook and their
email while shopping. According to recent studies,
interruptions in decision making could drive consumers
to focus on products’ desirability rather than feasibility,
causing people to purchase products that they didn’t
really want or at prices exceeding their budget.”
Sometimes regarded as the birthplace of online
shopping, eBay has become a household name and
continues to be listed amongst Australia’s most visited
online stores with an increasing number of shoppers
using its mobile phone app to research and purchase
products. eBay Vice President Deborah Sharkey says
smart phone technology is making consumers savvier
than ever. “Retail purchases have been assumed to sit in
one of two camps, offline or online, but this distinction
no longer exists. With portable shop windows sitting in
consumers’ pockets, Australians are more empowered
than ever before to research products and get the best
possible price before completing their transaction.”
According to a recent eBay report, an item is
purchased every four seconds in Australia via an
eBay mobile phone app with a whopping 1.3 million
Australians using their mobile phones to research and
purchase items in 2011. Phones were used to purchase
fashion, technology and home and garden products, but
the most expensive item bought on a phone in 2011 was
a Mercedes-Benz convertible which sold for $50,989.
Traditional retail outlets are feeling the pinch
as their prices are being undercut from a growing
contingent of online stores both here in Australia
and overseas. Just one of the recent victims of this
phenomenon is Speciality Fashion Group, the owner of
ladies fashion outlets Katies and Millers. The company
plans to axe 120 of its outlets over the next three years
and take more of its business online. CEO Gary Perlstein
says it’s all part of plan to ensure long-term growth.
While companies struggle with solutions to regain
their customers, online stores and shoppers are
laughing all the way to the bank. It’s inevitable that
traditional retailers will need to find ways to compete
either with price or service, or both.
More at Be Extras: www.be.cqu.edu.au
TIPS FOR SAVING MONEY ONLINE
FACEBOOK – LIKE THIS PAGE
When you ‘Like’ a retailer’s Facebook page
you can simply watch for bargains and
discounts to appear in the status updates.
TWITTER – FOLLOW THE LEADERS
Follow your favourite retailer on Twitter
and wait for the bargains to come to your
Twitter feed.
INBOX BARGAINS
Subscribe to newsletter emails from
your favourite stores. Be warned – you
might want to set up a separate email
address to receive these emails in case of
email overload.
SPECIAL CATEGORIES
Look out for clearance, over-stocked and
reconditioned categories at your favourite
online stores.
COMPARISON SHOPPING
Seek out a comparison website like
shopping.com to find the best price on the
product you want, but make sure you still
purchase from a reputable outlet.
COUPONS AND VOUCHERS
Some websites specialise in finding
retailers who are currently offering coupon
deals. Previously only available on the back
of supermarket dockets, now there is a
huge Internet market for this.
GOOGLE IT
Before you commit to buy anything
online, make sure you do your research
about the product and the online store.
Search for product reviews and customer
satisfaction feedback.
(Source: www.onlineshoppingaustralia.com.au)
ISSUE 13