Coremetrics’ most recent e-commerce benchmark report shows a 60 per cent increase in the average order value for ANZ purchases made during March, April and May 2009.
Australian and New Zealand shoppers are returning to the world wide web in droves to peruse global e-commerce websites and make online purchases, according to Coremetrics, which surveyed the buying habits of more than 75 million shoppers worldwide. Since the global economic downturn, consumers have been naturally careful about their spending habits but it seems that online opportunities are proving too good to pass.
Twelve months ago a similar benchmarking study showed that the average Australian and New Zealand shopper was spending $54 and $48 respectively on average per order. Following this the global economy took a nose dive, as did online consumer purchasing habits with a January 2009 benchmark report showing Australian and New Zealand shoppers spending an average of $37 and $38 per order respectively. Today, online consumers in Australia are spending an average of $90 per order, while New Zealand shoppers have jumped to $96.
“Such a significant jump in the average order value over the last 12 months is very promising,” said Kevin Mackin, general manager for Coremetrics ANZ.
“While it’s not all that surprising to see an increase in spending since January, thanks to the general positive shift in consumer confidence, the fact that we’ve surpassed spending numbers for more than 12 months ago is interesting
“These figures represent a smarter modern shopper; one that takes time to visit e-commerce sites all over the world before deciding on a purchase. ANZ consumers are becoming more e-commerce savvy; they’re enjoying perusing the breadth of products and services available over the internet and take advantage of online discounts and special offers unavailable in-store,” said Mackin.
Local businesses looking to take advantage of burgeoning consumer confidence in e-commerce need to keep in mind that while shoppers are spending more money per purchase, they’re buying less frequently. The average number of orders per 100 sessions has dropped to 1.55 for Australian and 1.26 for New Zealand shoppers. In January 2009 this figure was 2.9 and 2.5 for Australian and New Zealand consumers respectively.
“The global trend has been screaming at us for years that online shopping is on the up and up. Despite hiccups (small or large) in the economy, more and more people are and will shop online to scour for bargains, find specific products and save themselves the time of shopping in-store.
“While ANZ lags the global average order value by more than 50 per cent, all things point to a steady increase. We expect to see the average order value for Australia and New Zealand double in the next 12 to 18 months, which sets the target very high for e-commerce businesses throughout the region,” said Mackin.
“Companies out there looking for new customers online can no longer afford to have websites that are outdated or impractical. They need to be offering cross- and up-sell opportunities to existing customers, and compelling product and service offers to prospects. They need to know who their customers are, how they interact with the business and what their buying habits are.
“The smart companies taking a leap in their online marketing strategies are the ones that are snaring a significant share of the e-commerce market right now and they’ll continue to do so as opportunity increases,” concluded Mackin.