Overall online sales are forecast to grow 20% in next year and mobile sales set to double as changes in online consumer behaviour drive a substantial growth, according to the inaugural CommBank Retail Insights report.
As the average online transaction value is predicted to increase 14% year-on-year, 43% of retailers have said they will increase technology budgets in next 12 months. However, just 36% acknowledge they are effective at harnessing big data.
Commonwealth Bank national manager, Retail Industry, Jerry Macey
The report finds consumers are shopping online less frequently but spending more per transaction, with the average transaction value up 14% year on year.
Consumers also remain highly selective and loyal, with more than 90% of online shoppers transacting with just three or fewer brands each quarter, and two-thirds of customers shopping online for just one category of goods.
CommBank Retail Insights combines an in-depth survey of more than 500 retailers in Australia, with an analysis of around three billion dollars in transaction data from CommBank credit cards covering ten major online retail categories.
Following a 14% increase in total online spending in the 12 months to 31 March 2015, the research reveals that retailers expect a 20% increase in online sales over the next 12 months. When looking specifically at the proportion of sales conducted through mobile devices, retailers expect this to double over the same period.
Retailers are looking to take advantage of changing customer behaviour towards online shopping, with 43% of businesses expecting to increase their technology budgets and introduce new channels such as social media and mobile apps.
Commonwealth Bank national manager, Retail Industry, Jerry Macey said the research shows the time is ripe for retailers to capitalise on changing consumer preferences for online purchasing.
“The shift to online shopping is supporting confidence in the retail sector. Retailers are responding by maintaining or boosting investment in technology and introducing new digital channels to capture substantial expected sales growth,” Macey said.
“While businesses are witnessing the rapid pace at which consumer behaviour is changing, they are saying they are concerned about the costs associated with technology solutions and marketing.”
The report also finds that, the tradition of smaller, regular purchases of items such as music and books, is being overtaken by sales of categories such as high-end fashion, technology and appliances, albeit on a less-frequent basis.