E-commerce Vs Bricks and mortar retail in Australia

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E-commerce Vs Bricks and mortar retail in Australia

E-commerce has emerged as a new force in retail providing consumers with more choice and convenience than ever before. People can now shop from retailers across the globe in the comfort of their own home. It would be thought that exciting possibilities such as this would be readily adopted and create competition for existing retail methods. This has not been the outcome in Australia however. Although e-commerce continues to climb in adoption rates bricks and mortar retail has not been affected to any great extent. This being said some areas of e-commerce are becoming successful new ventures on the net. Throughout this essay we will look at what e-commerce is, how it is being used and who is using it. It will also be considered whether e-commerce will ever replace bricks and mortar retailers or will e-commerce disappear?

E-commerce is a business that is run on the internet rather than from a bricks and mortar location. E-commerce uses computer networks and telecommunications to conduct its business as it has no face to face contact with its customers. It can be argued that e-commerce is a more effective way of doing business. (NOIE, 2000) This is because it does not require all the overheads and staff required in a bricks and mortar business. However E-commerce is more complicated than it may first seem, more is involved than the simple transfer of funds over the internet. For an online business to be a success it must be planned, established and run as if it were a bricks and mortar business. E-commerce ends with the buying and selling of goods and services over the internet. (Mitchell. J, 2000) Marketing of goods and services, formation of customer relationships, presentation of goods and services for consumers to brows, transfer of funds and after sale customer care must all be established and maintained.

E-commerce can be conducted in a Business to business (B2B), Business to Government (B2G) or Business to consumer (B2C) way. B2C e-commerce is an area of significant growth. Many Australians are choosing to use the internet to make purchases. A study conducted by NOIE revealed that in 2002 54% of Australians had access to the internet in their home. Although online consumption is not one of the highest ranking activities conducted by Australians on the internet it is an area that is growing. (NOIE, 2000)

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One specific area of growth is the use of online banking. (DCITA, 2001)  Consumers enjoy the convenience of doing their banking from home on the internet rather than traveling to the bank and standing in line waiting to be served. The most popular online shopping category in Australia however is travel and its related services. Consumers enjoy browsing online for the best deal and creating their own holiday packages. Purchasing travel online also cuts out added fees such as the travel agents commission if flight and accommodation are bought directly from the source rather than through a representative. In ...

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