By David Jackson.
Online retail in Australia is witnessing a boom. However despite this increasing trend, it is still not clear that whether online retail is more of a boon or curse to the Australian retailers. A retail industry association recently claimed that around 88,000 jobs could be lost if the Australian government fails to levy Goods and Services Tax on all the items bought online. Presently purchases bought from overseas retailers below a value of AUS$1,000 are exempted from GST as against items bought locally.
Online retail in Australia is forecast to grow that will bring an upsurge in jobs. Online retail industry down under is estimated at around $30 billion and is expected to reach $36 billion by 2013.
Retailers and industry associations are focusing more on various ways of protecting their depleting market shares and revenues, seldom missing the bigger picture. The retailers need to assess that why more and more consumers are opting for online shopping and what measures they can take to serve these customers in a more effective manner.
Retailers who think that applying 10% GST on imported commodities bought online could solve their problems are just not able to feel the issue from the point of view of the customers. Consumers are more inclined towards getting the value for their money when they buy a product. Online retail offers customers ample of solutions, as they can buy a product from a celebrated global brand, which can be delivered at their door step at no extra price.
Retailers need to keep this in mind that a customer will eventually find a means to get the best deal. The Internet has completely altered the shopping experience of a customer. Australian retailers must embrace online else the growth and related jobs will continue to go to the overseas retailers. By accepting that the rules have changed and looking at online retailing as an opportunity and not a threat, the retailers can deliver value to customers and nurture in the new digital bandwagon.