During the train commute to work, a break between uni classes or sitting in a waiting room, the convenience of that one click purchase has taken the world by storm. E-commerce is a huge platform that is growing at an unprecedented rate with a ‘retail shift’ currently being one of six significant iConsumer trends. The question is, is there a massive change upon us?
According to the NAB Online Retail Sales Index(NORSI), there has been a 10.4% increase in online sales and $21.7bn spent across both physical goods and digital services in 2016. These figures show a major shift towards online retailing, motivating companies to adapt their business models and move their advertising and shopping online. Many companies use social networking sites such as Facebook and Instagram to advertise, as well as their own websites to allow for easy purchases.
After looking at these statistics, I ask myself what has brought on this change? Why are we trading in our trips to the shops for an online delivery purchase? The Australia Postpublished an ecommerce industry paper last year, which provided some insight to these questions. It was shown that consumers tend to spend on websites that are ‘variety stores’ such as Amazon, where they are able to purchase an array of different items that you would not normally find in one brick and mortar store. These variety stores counted for an entire third of all purchases in Australia in 2017. Due to this huge surge of variety shopping, online retailers that were once focused on a particular product or category are now expanding to offer a broader range. Catch, for example, originally offered just one product per day but not offer over 100,000 products. This report also made point of convenience. There has been a massive increase in online spending from suburbs that are located further away from cities.
So what about smaller businesses who need help to find their own stance in the online world? Bernadette Schwerdt is a well-known public speaker and author. Her passion for motivating others has enabled her to train business owners, corporate teams and entrepreneurs to enhance their marketing skills and content for their online businesses. Today is a world of competition; the retail shift has saturated the market with millions of different online options.
As a consumer myself I still do enjoy walking around stores, being able to see the products in person. However the shift to online has provided perks. I do seem to find discounts online more often than not and the convenience of shopping on my computer or phone is a constant temptation.
Do you believe the future is online?
Z/V 
Sure, online is convenient! But you can’t feel the fabric of the clothes you want to try on, you can’t truly know if that pair of shoes will fit you and you certainly cannot smell the fruit as you walk through the supermarket. The internet cannot (yet) entirely satisfy the senses and for that reason, REAL LIFE retail is still alive.
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I definitely agree with you in regards to our senses. It’s a very different experience shopping online. I have to say most of my online purchases are items I have already seen in person so I am 100% satisfied with what I am getting.
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Definitely still a firm believer in the presence of bricks and mortar stores to look and feel the weight and quality of items! But, in more recent times have found myself shifting towards the online market place, as greater discounts are more prevalent. Strongly agree the future of retail is online!
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I agree Isabella! I still prefer to shop inside a store, however I do find that I am finding myself being drawn to online shopping as I find there are discount codes online, plus the convenience if I can’t get to the shops!
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E-commerce is having a major impact in commercial / retail / industrial property markets with many retailers now proving a “click & collect” service. Buy online and collect in store giving the consumer the best of both worlds whilst providing the retailer a chance to upsell. Interesting times!
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Thanks for sharing Joel! I personally find myself using the click and collect concept, however if I am purchasing online I tend to have it sent home rather than to a store. I think e-commerce is providing a great opportunity for those who live far and aren’t able to get to a store the opportunity to still purchase the items they need.
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Although there has been a drastic shift in the retail industry with the growth of e-commerce, i do think the hype about ‘brick and mortar dying’ is still a long long way off. Shopping and experiencing a store is almost a leisure activity and many people still enjoy it, i guess we just now have the advantage of both! I for one much prefer in store shopping and i think it satisfies much more needs then what online/e-commerce does for the time being! But who knows what will happen in the next few years!
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I still very much enjoy shopping in brick and motor stores. Like you said Holly, its an experience, and I usually make a day of it! However there are a lot of consumers that do not have the ability either due to location or time to have a day of enjoying the shops. These consumers need access to online shopping, and this is where an ever growing market is for brands to provide an online shopping service:)
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I honestly believe that the internet is only going to become more prevalent in our lives. Everything is starting to switch from hardcopy to electronic, even our medical records! However as a shopper, I prefer knowing exactly what is in a store before I walk in. I check their website beforehand and I think it personally reduces any purchasing regrets!
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I agree Michelle. I think it is becoming clear that brands are finding they don’t necessarily need to be in a brick and motor store in order to reach profit. Especially in todays world where technology is rapidly evolving to allow for seamless online purchasing. Like you, there is still a part of me though that likes to shop in store so I know exactly what I am getting. However I find that if I have used the online store before or I am familiar with the brand I have no problem shopping online!
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