13
Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Embed Size (px)

Citation preview

Page 1: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Driving Business OnlineWed 15 August 2012

Canberra

Online Business in Australia

(PayPal Market Research)

Page 2: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Topics covered

• PayPal does extensive market research on Australian (and global) e-Commerce trends:

• 140,000 businesses in Australia accept PayPal• PayPal small business assistance: – setting up payment systems for new online business

(60%) – Existing sites – driving further growth (40%) – Already selling (10%, included in above) – National seminars:

6 regional locations including Canberra

Page 3: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Businesses Represented

• Flying Solo– Australian Micro-business online “community”

• Shopping.com – Shopping comparison website

• Redlaser – Barcode scanner

• Magenta – e-Commerce “platform for growth” – Initial setup for business websites

• Noni and Yu– Fashion for women, 30+

Page 4: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Online Opportunities

• 8 in 10 Australians were online in 2011 – 14.4 million Australians– Up from 6 in 10 – 2009 – Most are online every day – 2/3 shop online

• This makes 9.9 million online shoppers in Australia – Rural areas have more online shoppers per head

of population than cities (surprising result?)

Page 5: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Retail Online

• In Australia, online retail is still growing – $27billion in 2011 (11% of retail sales) – Projected $35billion in 2013 – Growth of 10-15% over the next 3 years

• In the USA, online retail is levelling off – Market saturation – Mature market – Global Financial Crisis

Page 6: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

The greatest consumer concern is:

Trust• Security of personal details from Online / credit card

fraud • For most consumers, more important than price

• Physical security problems are mainly solved, if dealing with known and reputable businesses – This is a problem however for new businesses that are not

yet known

• Online businesses must actively develop a reputation for: – Security and safety – Reliability, especially in warranty and returns

Page 7: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Australians buy Australian

• Australians have a strong local preference – Will pay more for Australian products online – BUT within reason! (10-15%)

• Price still matters– At 30% to 40% cheaper, Australians buy offshore

Page 8: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Customer complaints about online purchasing

• Availability is also important – Vital to have a good range of products online – Be able to ship those products you advertise

• Delays: – prevent repeat custom – lead to demands for refund – Don’t let the customer regret their impulse purchase!

• Unclear rights / lack of legal protections – Reliability and safety are big selling points for Australian

online businesses – Coverage of Australian consumer law

Page 9: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Multi-Channel Marketing

• Use ALL channels (Omni-channel) – Retail shop – Website, Social networks – Smartphone (web), Telephone sales (voice call)

• Consumers use websites to: – Browse, Compare, Try, Buy

• Each of the above steps should drive the next one – Encourage customer to make the purchase immediately – Each channel should link with / promote the alternative

channels

Page 10: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Connected Devices

Australians are the world’s fastest adopters of smartphones: – 52% of phones in 2011 – 58% use their smartphone every day in a given week– 28% have made 1+ purchases via smartphone

• Users have a number of devices and switch during the day– iPhones (smartphones generally) and Tablets in “lean back”

engagement: relaxation, entertainment, reading, passive enjoyment eg iPads tend to be used between 7pm-9pm

– Laptops, desktop computers in “lean forward” uses: Processor-intensive work across software platforms, eg research, media editing, secure applications eg financial transactions, games

Page 11: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Coming Trends

• TV commerce– Purchase straight from TV – Connected direct via PayPal (or other provider)

• Research for Ericsson projections for 2020: – 8 billion people on Earth – 50 billion connected “smart” devices

Page 12: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Customers Try in Retail Stores, then Buy Online

• Pointless trying to “police” this – Customers will be turned off, and your competitor

gains your business • Get in-store customers to visit the website – They could make their purchase there – Make it an easy decision for them to buy now

• Online discounts, special social media offers

• USA (2011) – 50% of all retail sales are through some kind of multi-

channel experience

Page 13: Driving Business Online Wed 15 August 2012 Canberra Online Business in Australia (PayPal Market Research)

Web Business Needs

• Best practice guidance on: – How to get started online– Checkout, billing and payment – Growing an existing online business

• Webinar (web seminar) – on Getting Noticed Online– 10am Wed 22 August