More than two-thirds of online retailers expressed optimism about the business outlook for the next 12 months, according to an annual survey conducted by eBay.com.au.
The second Online Business Index (OBI), which had respondents among the largest sellers on eBay.com.au, recorded a higher level of confidence (69%) than last year’s survey, and many said they expected to increase staff in the coming year.
“Turnover for the top 2,000 Australian businesses on eBay.com.au grew by 38 percent in 2010, clearly demonstrating that consumers have a robust appetite for domestic goods and for purchasing online,” said Deborah Sharkey, eBay vice president.
Online businesses recorded another year of double digit growth, with Australian-based eBay sellers experiencing 10 times the growth of retailers. Thirteen percent more sellers generated sales of more than $1 million than in 2009.
“Successful retailers go where the customers are and increasingly that’s online,” said Sharkey. “Respondents demonstrate that they use online as an additional sales channel and it’s these savvy businesses, keeping up with market trends and taking advantage of the high Australian dollar that will win in the retail space.”
The degree of confidence is surprising considering almost four in five respondents indicated they had experienced difficulty with suppliers and manufacturers that tried to prevent sales of product online.
On this issue, the OBI results showed that:
- 35% faced issues with manufacturers/suppliers trying to prevent them from selling their goods on the internet or on particular websites.
- 25% were required to sell their products at or around a particular recommended retail price.
- 22% experienced unexplained problems from manufacturers or suppliers which they suspect was due to selling their products over the internet.
“Restrictive practices by manufacturers and wholesalers, uncovered in the OBI research, mean that local businesses are unable to offer the full range of goods their customers want,” said Sharkey. “That needs to change.”
Party supplies business owner Kirsty Chapman-Smith, co-owner of Deals4Kids in South Australia, said the issue was that suppliers did not want to lose the business of long standing retail partners, “despite the fact that more and more consumers are moving online to make their purchases”.
“Suppliers should be working to promote a healthy and competitive retail environment, which benefits consumers and gives them increased selection at competitive prices,” said Chapman-Smith. “It’s become an issue of both loyalty and adapting to new sales channels.”