20 years ago, It’s hard to believe that login on the eCommerce website, find the product and place the order, then wait the product turns up on your doorstep after a few days. But nowadays, with the software( mobile website) and hardware( 5G or NBN network) development, “click and buy” has become a reality.

How  is the trends of online business?

Global eCommerce sales keep in high-speed growth during the past ten years. According to Statista data, the sales will rise to $4.5 trillion in 2021.

Global eCommerce trends

(Source: Statista)

Australia is currently the 10th largest eCommerce market in the world by revenue. Online shopping in Australia will keep growing over the upcoming years. The market size will be predicted to A$35.2 billion (US$ 25.2 billion) by 2021.

ecommerce-australia-statistics

(Source: Statista)

Many business giants have adopted a multi-channel approach to the evolving preferences of consumers.

business retail giants website

What are they buying?

According to Aus Post statistic, national eCommerce average sales in 2019 has over 20% growth compared with 2018.

The health & Beauty products sales has nealy 30% increase while fashion and variety stores products also have over 20% increase.

 

national YOY growth

(Source: Aus Post)

Where are they buying?

In every State and Territory, the number of online purchases grew more than 13% YOY and the stand-out performers were Tasmania,Victoria and Queensland.

State & Territory online shopping growth

(Source: Aus Post)

More data statistic about Australia online business 2019, you can click here to download the file released by Australia Post.

Why online marketing is the future?

Such profitable data above obviously will push more and more Australia company invest in online business. Also, there are some internal motivations to encourage the business owner to do such a transformation.

Let’s compare the traditional business with online business and find out their difference.

1. The communication mode is different.

E-Commerce is completely an in digital and online mode where the communication is through electronic form completely whereas Traditional Commerce is completely offline and through face to face or telephone.

Using digital communication can save the company lots of money and time because some of the order procedures automatically fulfilled by the website instead of employee handling. Customers can pick up their favorite goods and place the order by themselves without any employee intervention. Even customers have any buying questions, it can be solved by the Q&A page or online assistant.

Online businesses can speed up the transaction and improve the buying experience. An online business can use multiple media to provide more detailed information to customers, including introduction video and review from existing buyers. Once customers know more about products and services, they will place the order faster.

2. Customers’ market volume is different

Online business is reachable worldwide while the traditional business mainly provides goods and services to limited area people.

Traditional business relies on the brick and mortar shop to provide goods and services. As a result, their income and profit depend on the population of local residents. By contrast, An online business can provide goods and some type of services to people who can access the internet.
For example, a Brisbane handcraft store owner mostly sells the products to local people or travelers passing the store. But he can sell the products all over the world through a website. Obviously, the E-Commerce mode has more potential market volume than the physics store. Do you know your niche market volume?

3. Traditional business and online business have a different promotion solution.

Traditional businesses prefer to use traditional media to contact customers. They will release the TV ads or send some promotional mail to the public. They hope some of the potential customers make the purchase decision after receiving such promotion campaigns. Online businesses like using email / remarketing solutions to push promotional messages to customers.

It’s hard to define which way is better to promote products/services. However, during the advertising campaign, online businesses can collect and survey customers’ reactions easier and more effectively than traditional businesses. That makes them improve the promotional campaign in the future.

4. Different ways to understand customers

Traditional businesses have a series of ‘physis’ ways to know more about customers. For example, you can prepare lots of forms to do the customers’ survey, then do the data statistic, try to find what kind of goods are popular in the local area. If a traditional business owner wants to count how many customers come to shop in a certain period, it’s no way except manual count.

On contrast, an online business is based on visitors’ data flow. All the transactions, visited pages are easily counted by software. The business owner even can know how many visitors are visiting what pages. And then they can adjust the promotion strategy.

Use software to collect and analyze customers’ behavior and improve online business performance effectively is a significant advantage of online businesses.

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