Research by Ebay has revealed 78 per cent of surveyed e-commerce businesses have battled suppliers who are keen to prevent the sale of their products online.
The revelation was contained in Ebay's second annual Online Business Index (OBI) which surveys Australian e-commerce traders. Among the most common problems reported by respondents were suppliers that worked to prevent them from selling goods online or via certain websites, and suppliers that required e-tailers to sell their products at a particular retail price.
Twenty-two per cent of respondents also reported “unexplained problems” with suppliers that they suspected were related to their decision to retail online.
Ebay vice president Deborah Sharkey said suppliers needed to reconsider their approach to e-tailers.
“Research demonstrates that one of the main reasons Australians buy online from overseas-based sellers is due to many popular products not being offered online locally,” Sharkey said.
“Restrictive practices by manufacturers and wholesalers, uncovered in the OBI research, mean that local businesses are unable to offer the full range of goods their customers want and that needs to change.”
Despite the problems with suppliers, OBI found 69 per cent of e-tailers were optimistic about the year ahead. Online businesses were reportedly expecting to increase their number of paid employees from an average of 4.4 people to an average 6 people over the next 12 months.
“Turnover for the top 2,000 Australian businesses on ebay.com.au grew by 38 per cent in 2010, clearly demonstrating that consumers have a robust appetite for domestic goods and for purchasing online,” Sharkey confirmed.
Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, joined Sharkey to announce the results of the survey.
“E-commerce has witnessed significant growth in this country, against the trend of the overall retail market,” Conroy said.
“Industry feedback about barriers and challenges to the growth of online businesses in Australia such as through this publication usefully inform future public policy development and industry initiatives.”