As business owners, we know the importance of having an online presence to build awareness and promote our products. The latest Sensis e-Business Report supports this, finding that 84% of small and medium businesses (SMEs) are online. But only 51% of SMEs are selling online. This seems a low figure when you consider:
- 95% of Australians own a computer
- 56% own a tablet, and
- 72% own a smart phone.
And what are Australians doing with these devices? You guessed it, going online. In 2014:
- 86% of Australians aged 18 – 29 used mobile phones to access the internet
- 72% of Australians in their 30s have accessed the internet on a tablet, and
- 66% of Australians aged 50 – 64 use mobile phones to access the internet
And while consumers are accessing the internet on mobile phones to research purchases (57%) and service providers (54%), only 45% of SME websites are optimised for mobile phones. This seems like a lost opportunity for many businesses. Even those not selling online would seem to benefit from a website optimised for mobile phones. Sensis also asked 800 consumers about their buying habits and found 21% of online purchases are coming from overseas. The impact of online shopping on Australian business has been a hot topic for some years. Australian businesses (not just SMEs) have long claimed online shopping makes bricks-and-mortar stores unviable. But they also claim to be disadvantaged by online purchases from overseas being GST-free. When the GST was introduced in 2000, online shopping was relatively new. eBay and Amazon introduced their shopping sites in the mid ‘90’s, but only 15% of Australia’s population was online by 1997 (about 92% in 2014) so perhaps we can excuse governments of the day for not predicting the explosion in online shopping. Currently, goods valued at less than $1,000 purchased online from overseas are exempt from GST. The Federal Treasurer has hinted that the Australian government will lower or remove that threshold to require that Australians pay GST on all online purchases. This, says the Treasurer, would provide revenue the States say is required to keep pace with infrastructure needs without having to increase the GST. Whether paying GST on overseas purchases will focus Australian consumers on domestic online sellers is unknown. The low Australian dollar appears to be having more impact on purchasing decisions, with Australian retailers’ online sales increasing 12% in 2014, while Amazon lost market share to Dymocks and UK-based clothing retailer ASOS said web traffic from Australia has fallen significantly. This may be the opportunity Australian small businesses need to capture some of the online market. First step, optimise that website for mobile phones!
