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Retail In Australia Essay

1677 words - 7 pages

Retail in Australia

E-commerce has emerged as a new force in retail providing consumers
with more choice and convenience than ever before. People can now shop
from retailers across the globe in the comfort of their own home. It
would be thought that exciting possibilities such as this would be
readily adopted and create competition for existing retail methods.
This has not been the outcome in Australia however. Although
e-commerce continues to climb in adoption rates bricks and mortar
retail has not been affected to any great extent. This being said some
areas of e-commerce are becoming successful new ventures on the net.
Throughout this essay we will look at what e-commerce is, how it is
being used and who is using it. It will also be considered whether
e-commerce will ever replace bricks and mortar retailers or will
e-commerce disappear?

E-commerce is a business that is run on the internet rather than from
a bricks and mortar location. E-commerce uses computer networks and
telecommunications to conduct its business as it has no face to face
contact with its customers. It can be argued that e-commerce is a more
effective way of doing business. (NOIE, 2000) This is because it does
not require all the overheads and staff required in a bricks and
mortar business. However E-commerce is more complicated than it may
first seem, more is involved than the simple transfer of funds over
the internet. For an online business to be a success it must be
planned, established and run as if it were a bricks and mortar
business. E-commerce ends with the buying and selling of goods and
services over the internet. (Mitchell. J, 2000) Marketing of goods and
services, formation of customer relationships, presentation of goods
and services for consumers to brows, transfer of funds and after sale
customer care must all be established and maintained.

E-commerce can be conducted in a Business to business (B2B), Business
to Government (B2G) or Business to consumer (B2C) way. B2C e-commerce
is an area of significant growth. Many Australians are choosing to use
the internet to make purchases. A study conducted by NOIE revealed
that in 2002 54% of Australians had access to the internet in their
home. Although online consumption is not one of the highest ranking
activities conducted by Australians on the internet it is an area that
is growing. (NOIE, 2000)

One specific area of growth is the use of online banking. (DCITA,
2001) Consumers enjoy the convenience of doing their banking from
home on the internet rather than traveling to the bank and standing in
line waiting to be served. The most popular online shopping category
in Australia however is travel and its related services. Consumers
enjoy browsing online for the best deal and creating their own holiday
packages. Purchasing travel online also cuts out added fees such as
the travel agents commission if flight and accommodation are bought
directly from the source...

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