Internet retail is expected to surge this financial year according to business information research firm IBISWorld. It ranked ninth in the organisation’s annual list of the top 10 industries for growth in 2011-12.
Oil and gas production, sugar manufacturing and organic farming were ranked first to third respectively while gaming and vending machine manufacturing was named the industry expected to perform the worst.
Online shopping is expected to rake in revenue of $5.5 billion dollars in 2011-12.
IBISWorld general manager Australia Robert Bryant says the growth will be sparked by the number of bricks and mortar stores going online.
“While the past year has seen a number of Australian retailers launch online platforms, such as Big W and David Jones, many of our leading players are yet to enter the arena,” he says.
“IBISWorld predicts that over the coming months the number of names online with an online presence will rapidly expand as retailers seek to compete through offering greater flexibility to customers as well as expanding product lines.”
Bryant believes demand for new technology will add to increased demand for online shopping.
“In 2010, 25 million purchases were made online using mobile devices and this is expected to increase by more than 50 per cent in 2011-12.”