Online offerings
Trading for just over a year tiesncuffs.com.au is as an online shopping resource, launched by men, for men.
Designed with the time-poor, anti-department store male in mind, mates Andrew Gideon and Phillip Kidd launched the e-tailer because "men like us are label-savvy", says Kidd.
"We know what we like and dislike and spending hours in department stores is not our thing. I'd rather be having a beer, so having an online resource we can access while at work, is the perfect solution.
"We wanted a website that would do the hard work for us", adds Gideon. "We wanted no department store confusion and no sales people, just excellent quality labels at competitive prices in a format men could understand."
No longer restricted by retail trading hours, every year more and more consumers are opting to jump online and shop at home in their pyjamas or during their lunch break at work as opposed to fighting for a car park.
Trading since 2005, esunnies.com.au's marketing director Fran Vaughan says most of esunnies' orders occur between 3pm and 6am.
"A number of orders come in through the night, there seems to be a few night owls out there."
Able to reach customers worldwide whilst maintaining one location for every customer to visit, 24 hours a day seven days a week, Vaughan says for e-tailers, the ability to have a global presence is also a huge advantage.
"Our market is no longer confined to our local area. We can reach [customers] anywhere in the world and we have rapid access to the latest products in Europe. Most people aren't aware the majority of designer sunglasses come in multiple colours and sizes. They're not offered by retail shops because it's not cost effective. We're able to offer more than 5,500 different pairs and the latest European collections that aren't available in Australian retail stores for many months - this is what differentiates us.
"Additionally, we have the advantage and convenience of managing the business from various locations at any time. We're not restricted to the nine to five office mentalities and are able to answer our customer's orders and queries from a laptop away from the office."
Rebecca Anderson, owner/manager of sassijewels.com.au was drawn to operate online due the shifting tide of consumer behaviour.
"We thought it was a good choice and the right time. Customers can shop with us any time and we can take Enquirer anywhere a phone or laptop goes. I think as long as customers know it's a secure site - preferably [with] an Australian office, they aren't resistant to shopping online. "There's been a [flood] of online stores opening since we launched a year and a half ago which is another indication of the surge in e-commerce."
Going through a boom period with strong year-on-year growth and what appears to be endless potential, worldwide online sales will grow 12 percent annually and exceed $US144 billion ($A184 billion) by 2010, according to a report released by industry analyst and research company JupiterResearch.
With many overhead expenses associated with a physical retail space, such as in-store staff, rent and inventory significantly alleviated, e-tailers have the opportunity to turn higher profit margins.
Offering luxury labels including D&G, Givenchy, Ermenegildo Zegna and Geoffrey Beene, Ties 'n' Cuffs popularity is evident, receiving more than 800,000 hits each month.
"The business has doubled its revenue every month since it started," says Gideon. "This has allowed us to open two more online stores, perfumecart.com.au and socksnjocks.com.au. As expenses are less, we can sell at a more competitive price and even include free shipping. Stock that sells in department stores will often sell on our site for 20 to 30 percent less than the recommended retail price."
But are lower prices and 24-hour convenience enough to compensate for the lack of face to face customer service that many consumers favour?
Acknowledging that this initially is a disadvantage - as clients can't physically view stock and it can take longer to build up a customer loyalty base; e-tailers are combating such drawbacks with a range of innovative concepts. These include online stylists, detailed information on how to select the correct sunglasses for your face type, free gifts and monthly newsletters keeping members up-to-date on trends.
But e-tailers have other headaches too. Lost or incorrect shipments, over billed customers and faulty products are just some of the problems faced, along with credit card fraud.
With the opinion that purchasing via credit card is the number one deterrent in ordering online, many e-tailers now offer customers alternative payment options such as direct deposit, money order, even fax or phone orders.
"There is definitely a trend in clients feeling more comfortable in making purchases online [due to payment options], says Gideon.
"The major change I see in the market is people feeling more comfortable to transact online after their initial purchase. Clients are also looking for testimonials from other clients to make them feel more comfortable."
Agreeing customers are more confident and willing to buy online, Vaughan feels the online market has expanded as customers feel more secure.
"There is more information available today about how to purchase online and the security requirements are becoming more sophisticated making it safer."
Trading in the Australian outback hat business since 1984, Hats by the Hundred owner Peter O'Grady shifted from retailing to e-tailing five years ago to access a wider market - particularly overseas customers.
"Competition within the online retail market has become much hotter in the past few years. Annually, our sales were [initially] showing a 15 percent increase but this has slowed down. In fact this financial year is down on last year because of the increased competition. It's now very easy to compare prices for branded products. If someone wants a particular style of Akubra hat they can check out many sites very easily. To ensure repeat business we need to rely on a good range, great service, competitive prices and timely delivery."
Delivering in as little as five days to the US and UK, O'Grady says hatsbythe100.com.au has most of its stock on hand.
"As soon as we process the payment we send it out by Australia Post. We then email the customer to advise them of the situation. We expect everything to reach the customer within 10 days."
Sourcing product on demand from Australian distributors or direct from European and US suppliers, esunnies imports its goods where necessary, delivering direct to its customers.
"This way we can control the delivery of the product and the customer takes no risk with the foreign exchange and importation cost or reliability," says Vaughan. "If the product is in stock we can deliver usually within seven to 10 business days."
Importing from Italy and the US, most of Ties 'n' Cuffs stock is also shipped direct from its Sydney office while the remainder is sent direct from Sydney manufactures.
"In terms of order processing, we receive an order then one of my staff confirms payment details. Once this is done, we pack the goods, ship them and advise the client of when they can expect their package. Delivery is usually within 48 hours as we ship via express post."