The Digital Age has changed the way Australians are buying. More and more Australians are finding themselves shopping online. As of 2017, 85% of Australians are connected to the internet. The digital shopper penetration rate is about 63% meaning that almost two thirds of Australian internet users purchased products online. The average revenue per user is about $1,400.
Online shopping has many benefits for both consumers and businesses. While consumers benefit from its convenience, an ecommerce platform provides cost benefits to businesses. And as the costs of logistics and delivery steadily decrease, online businesses will find it profitable to stay the course.
Unfortunately, while many businesses are taking advantage of ecommerce, both locally and globally, many of Australia’s small and medium enterprises (SMEs) are finding it difficult to follow suit. This is not for a lack of internet connectivity, rather the evidence suggests it is the slow adoption of website presence to generate online sales.
But if Australian SMEs want to widen their market and to increase their sales, they need to find a way to make their presence felt online. A recent survey of SMEs show that 37% of their customers can find them online and 22% of SME revenue is generated by online sales. Many of these SMEs are owned and operated by millennials, which explain their savviness. However, older business owners need not fall behind. The experience of these SMEs only prove that there is a demand for Australian products and going online is key.
In eFarmers, our online platform for farmers will help improve their distribution and their business in general. Consumer habits have been changing, and more and more Australians want to know where their food comes from and are increasingly purchasing online.