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Discounting driving up online sales

Online sales have seen a significant increase in the past year, and new research has found its due to a positive response by consumers to online discounts and group deals.

Australian online sales increased by a 64 percent in 2011 in comparison to the previous year, as consumers spent over 15.9 billion dollars online, according to a survey conducted by Telsyte, which spoke with 1100 Australian consumers about 18 categories of local online retail including clothing, travel, groceries, and appliances.

Telsyte senior research manager Sam Yip credits the uncertain state of the economy and technological advances for the rise in online bargain hunters and revenue generated by online stores.

“Retailers have spent the past few years trying to find the best way to drive their online strategy, and it is now evident that offering discounts is the main lever to get Australians to spend,” Yip said.

According to Yip, retailer’s homepages no longer just feature product ranges but are more focused towards clearance items and incorporate daily deal pages in order to appeal to shoppers.

The online retail market is predicted to continue to grow strongly and exceed $30 billion by 2016.

Rocheen Flaherty

Rocheen Flaherty

Rocheen is a junior reporter at Dynamic Business. She's a second year Journalism Major at UNSW and enjoys going to the cinema, reading, and wandering around craft and vintage markets.

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