Online Retailing continues to grow from strength to strength in Australia, New Zealand, Polynesia and Micronesia as consumers enthusiastically embrace new entrants into the channel. Traditional store-based retailers continue to report weak performance as they struggle to compete against the price advantage that online players enjoy. One reason for this price advantage is the strength of the Australian dollar, which has encouraged consumers to shop at offshore sites. Similarly, internet retailers avoid many of the costs associated with a physical store, such as rent, labour costs and insurance, and are able to pass these savings onto the consumer and offer lower prices.
High levels of broadband penetration and supportive government policy, make this region a critical player in the oinline retailing economy.