Despite the growth of ecommerce in Australia, many Australians still believe the cheapest deals are found on overseas websites.
Yet this belief is a misconception according to data compiled by price comparison site, finder.com.au. While the base price of products can be considerably lower, consumers often forget to factor in the high cost of shipping.
What’s more, converting the currency to Australian dollars can incur foreign currency conversion fees averaging 3 percent on a credit card, as well as taxes.
The website looked at the prices of well-known products such as an iPad (16GB Wifi) and Converse All Star shoes, and compared the prices found on Australian online retailers versus international sites.
Finder.com.au found that Australians could in fact purchase a pair of Converse All Stars at $7.59 cheaper with an Australian retailer than international, while an iPad in Australia can be found for almost the same price as the cheapest international retailer online (a difference of 0.57 cents).
An October 2013 report by National Australia Bank found that around one in four (27 percent) online retail sales transactions in Australia are done with overseas retailers. Yet the tide may soon be turning, as local ecommerce continues to grow exponentially.
Australian Bureau of Statistics (ABS) data found online retail trade totaled $403.5 million in September 2013 alone. This was an increase of $44.6 million (12 per cent) in March 2013.
“Overseas retailers are popular because they have long been ahead of the game with technology and price. But Australian retailers are catching up,” Michelle Hutchison from Finder said.
