Top 4 online trends for the Australian auto aftermarket in 2011

The online GST campaign by Australia’s big retailers has focused consumers on buying from online sites like no other recent event. Anecdotal evidence from established online retailers report a step change increase in online sales as a result. No matter which side of the argument you are on, understanding how your customers are behaving is vital.

Here's how we see the big online trends at the start of 2011

1. Improved confidence in online buying. The big retailers campaign has legitimised online buying as a mainstream option. Lack of confidence in receiving what you order has been the single biggest concern holding Australians back from buying online. Increased trust in online sites will accelerate growth.
2. NBN starting to come on stream in mainland states. Every previous increase in online speed has seen an equivalent growth in online transactions. This time the reliability and responsiveness on online sites will be even greater than the pure speed increase suggests. Buying online will be much better experience.
3. Growth of mobile shopping. By the end of the year, half of all smartphone owners expect to be shopping using their mobile. Mobile shopping offers existing retailers a major opportunity but ignore it at your peril. Customers will use the technology to find nearby alternatives and cheaper prices elsewhere.
4. Social Media. Much hyped, the world of Facebook, Twitter and Blogs has been on every trend list for the last few years. For many, actual results have been a bit disappointing. But compare social media with the general growth of online advertising and this new side of the business is maturing much faster and producing better results much earlier in its lifecycle. It will be well worth the effort to persist.

Our top 3 tips

• Retailers need to focus on local search first. Most online use is still in doing the research not the actual buying. You get the most immediate value from making sure your local customers find you when searching online. The trick is knowing what they are searching for.
• Don't think about selling online unless you are prepared to ship items the same day. Don’t build profits into shipping, absorb whatever costs you can because consumers compare on cost+shipping. Online a lack of transparency or less than perfect customer service is very public and a long lasting problem for you.
• You can compete without the lowest price but a highly restrictive returns policy will destroy customer confidence in buying from you. (see Trend 1)