Convenience and price driving online sales

Consumers are becoming more confident shopping online and continue to be attracted by the cheaper prices and convenience internet transaction offer, a new report says.

Around 62 per cent of adult internet users bought a good or service online during the six months to April 2011, the Australian Communications and Media Authority (ACMA) report released on Wednesday showed.

"The adoption of online shopping among the general population is fairly widespread, it is not something that is on the margins," ACMA manager communication analysis Joseph di Gregorio told reporters.

The ACMA report, E-Commerce Market Place in Australia: Online Shopping, found 59 per cent of adults went online several times a day for non-work purposes, up from 53 per cent in November 2009.

di Gregorio said convenience (cited by 67 per cent of people buying online) and price (47 per cent) were the main drivers.

Australians were buying mainly from local websites, although the share of local online purchases was down to 53 per cent, from 68 per cent in April 2010.

However, the share of overseas purchases was rising and was up to 19 per cent, from 12 per cent a year earlier.

The appreciation of the Australian dollar had also increased interest in overseas websites, di Gregorio said.

The most popular goods bought online included travel goods (60 per cent), clothing (53 per cent), and books and magazines (46 per cent).

Most online shopping was still computer based, despite the rise in mobile phone technologies.

"We note the growth of mobile commerce, but if you are thinking about preferences and the devices people use to shop online, it is pretty much around the computer," di Gregorio said.

But Australians were becoming more comfortable using their mobiles and smartphones for banking or bill payments.

People aged between 35 and 44 years had the highest rate of buying goods online, with 73 per cent of internet users in that age group making such purchases.

Internet users living in rural and remote areas also had a high rate of online shopping, 70 per cent, compared with their metropolitan counterparts on 63 per cent.

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