A significant increase in sales via mobile devices over the past year is boosting the performance of online only retail businesses, according to the latest research from
the Commonwealth Bank.
The research shows that sales through mobile devices have risen significantly, increasing from 18 per cent of all online sales to 29 per cent in the past year, an average annual growth rate of 60 per cent.
This growth is supporting the expansion of smaller pure play online retailers with the number of businesses generating between $1 million and $10 million in annual turnover increasing by 133 per cent over the last 12 months.
The proportion of online only retailers generating in excess of $10 million remains consistent at 20 per cent, with a smaller majority still generating less than $1
million (52 per cent).
Commonwealth Bank national manager of retail Jerry Macey said the online retail industry in Australia is no longer limited to the larger dominant players.
"Smaller retailers continue to carve out market share.
“Smaller online retail businesses are quickly achieving greater scale, with almost half now turning over more than a million dollars, and one in five generating revenue in excess of ten million.
"They are bringing greater focus to targeting customers, and optimising existing channels rather than seeking to introduce new avenues to market.
“Competition remains strong as larger multi-channel competitors also enhance their online presence. Although the weaker dollar has made purchasing from overseas retailers a little less appealing in recent times, the competitive threat still remains.”