High profile e-tailers such as buy.com may have packed up their bags and gone home to the US, but a new study from market analyst Forrester Research predicts US online retailers expect their Australian orders to increase 15 per cent by 2005.
According to the report, Expatriate Retail, the Asia-Pacific market will generate more e-commerce revenue than Europe and Canada combined and could be worth $62 billion by 2005.
At the moment, most online retailers sell globally by offering a global shipping option on their Web site. However, those who have tried to break into the Australian market have not lasted long - buy.com pulled back its Australian operations after just six months of trading. In December myprice.com.au, the company formed to bring the Priceline model to Australia, was also forced to shut up shop before the company even opened its virtual doors.
Forrester believes to be successful in the Australian market, Web sites need to be country specific with a product range that mixes top US selling merchandise with local favourites. Key partnerships with Australian companies are equally as important, according to the analyst.