Australian businesses aren’t mobile-ready, PayPal Australia report
A report from online payment service PayPal Australia has revealed that one in two Australian retailers have failed to develop mobile shopping capabilities.
Of the 400 businesses surveyed, just 51 per cent had developed the capacity to receive mobile payments.
This represented a mismatch with consumer demand and presents an opportunity for growth for retailers.
In a survey of more than 1,000 consumers, PayPal found that 72 per cent of people were shopping or making payments on a smartphone or tablet.
This number is growing, with 48 per cent shopping on a mobile device weekly, up 12 per cent on last year.
E-commerce adviser from Online Offline, Scott Kilmartin said businesses may have existing mobile capabilities that were ineffective.
“To do mobile commerce well, brands need the top-selling product on the home page, fast load speed, a fast search function and a frictionless path to checkout,” Kilmartin said.
With Amazon set to launch its Australia operations soon, Kilmartin reiterated the concern of many Australian retailers.
“I definitely think Amazon are going to open with a bang,” he said.
This PayPal report comes as e-retailer Amazon was reported to be winning the price war in 12 of 13 categories against its rivals in the U.S. according to e-commerce firms Profitero.
Vitamins and supplements, video games, sports and outdoors and pet supplies are just some of the categories where Amazon is excelling.
Is Walmart winning in U.S. online shopping?
In the United States, the battle for retail supremacy continues in a price war between the majors.
Walmart’s prices were just three per cent higher than Amazon’s across 13 key categories.
“We have seen a change from our 2014 study when Walmart prices were nine per cent more expensive than Amazon,” Profitero said.
Walmart was priced lower than Amazon in the beauty category, but was narrowly beaten in sports and outdoors and baby products.
In the most recent quarter, Amazon grew sales by 25 per cent or US$48 billion.
For context, Woolworths sales for its physical and online shops totaled US$45 billion in the whole of FY2016.