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Baby boomers prefer spending cash with local eTailers

As the older generations spends more and more money online, they’re showing a preference to buy Australian, according to new MasterCard research.

The MasterCard Worldwide Survey on Shopping Behaviour found 71 percent of purchases made by shoppers aged 50 to 64 are from onshore retailers.

“More and more, shoppers are rewarding local stores who invest in and update their online presence,” MasterCard Australia country manager Andrew Cartwright said.

“Presenting an innovative and fun experience is becoming a vital tactic for those wishing to gain a loyal customer base.”

Younger shoppers are turning to international outlets though, with 42 percent of purchases made by 18 to 24 year olds made with international retailers.

Cartwright believes that although the difference in behaviour between the age groups is growing, there is a “strong underlying desire” among older shoppers to support the local industry. Almost a quarter of respondents said they bought locally online because it’s cheaper than shopping through overseas outlets.

“While the rise of eCommerce can sometimes create disruptions and challenges for the local retail sector, it also presents lucrative opportunities for local outlets to harness a growing desire to buy Australia whilst online,” he said.

Consumers aged 45 to 49 were identified as the most prolific online shoppers, with 83 percent shopping online in the past three months, while baby boomers bought an average of five products online in the same period.

The survey also identified the main reasons for shopping online, with speed and convenience the most popular.

Cartwright said: “The Australian online retail market is developing quickly and changing constantly. We are seeing a renewed push by major department stores and iconic local brands to reinvigorate their online offerings and cater to the heightened demands of savvy online shoppers.”

Cartwright added the significant rise in online shopping among older Australians will likely lead to more diversity in online retailers.

The growth in online shopping has also highlighted the need for eTailers to provide fast and secure online transactions.