Online transactions continue to grow

4th June 2015

online-transactions-continue-to-grow-14101430.jpg

Buying online has already found favour with Australian consumers, and the latest data shows a growing preference for internet-based spending. The latest Online Retail Sales Index from National Australia Bank (NAB) reveals that during the 12 months to April this year, consumers spent $16.9 billion online.

As a result, online sales now account for around 7 per cent of retail spend - that's an increase of 6.6 per cent from the same time in 2014. Online sales as a whole are now 9.6 per cent higher than a year ago.

Chief economist at NAB Alan Oster explained that some demographics are more inclined to spend online than others. Nevertheless, accounting software in Australia will need to be adapted to take into account internet transactions, which are currently showing little sign of slowing down.

"At almost a quarter of all online spending, the 35-44s are the largest spend group, but spending by the 25-34s grew fastest in April," noted Mr Oster.

"The growth in online shopping by older Australians has been encouraging, although this has slowed in recent months, and was the slowest in April."

He revealed that although online sales growth is starting to slow from the earlier years, it is nevertheless still keeping pace compared to traditional bricks and mortar stores.

This follows research from Roy Morgan, which found that although Australia's online shoppers have the opportunity to buy from anywhere in the world, they are still showing a preference for local products and services.

In the year to September 2014, the figures showed that 38 per cent of Australians over the age of 14 had purchased at least one product over the internet in an average four-week period. In total, 64 per cent of them had made a local purchase, while 39 per cent had opted for overseas retailers.