Australian retailers who continue to ignore online shopping are handing Australian sales to overseas businesses, is the word from Mark Harvey, MD of Australia's Online Retailer Expo and Conference. 

A survey of web retailers by US-based Internet Retailer found that Australia is in the top three markets for generating web sales outside the US.

Harvey says more retailers need to ask themselves why Australian consumers are behaving this way.

“A whole new generation of consumers have taken control and are changing the game for the retail industry,” he said.

“With access to a wealth of information online, customers are speaking to us loud and clear by putting their credit cards on the line and transacting.”

Bing Lee head of ecommerce Peter Krideras said tech savvy consumers are reluctantly having to benefit international businesses because they were starved of brand choice in Australia.

“The delay in Australian retailers embracing selling online has made it easy for overseas ventures to tap into the Australian market,” Krideras said.

“The quicker Australian organisations embrace the power of the web, the quicker we can capture this growing market before we lose more money overseas.”

Forrester Research predicts Australian online spending will grow to $32 billion by 2012, with further evidence to suggest that this could just be the beginning. Figures from IbisWorld show that online sales may eventually reach $75 billion as more retailers increase the efficiency and reliability of their online channels.

Research by the Australian Payments Clearing Association (APCA) found that in 2005, 86 per cent of Australia's online spend was domestic. By 2008, this had plummeted to 57 per cent, with close to half of total online sales being directed to overseas competitors.

Global ecommerce leader Martin Newman says that as ecommerce evolves globally, there is a golden opportunity to lift the bar and catch up with international competitive standards.

“Benchmark not against competitors, who may be making mistakes, but against best practice,” advises Newman.

“In order to maximise the online opportunities in Australia, it is imperative that retailers look at mature markets, such as the UK and US for insight. There is no excuse for any retailer or supplier in Australia to make the same mistakes, because unlike the US and the UK, they have got very tangible benchmarks in both of these markets.”

The Online Retailer Expo & Conference will take place at Sydney's Sydney Convention and Exhibition Centre, Darling Harbour, from July 6 to 9.