This year has seen a dramatic increase in the number of Australian shoppers that are willing to buy online. Harvey Norman has recently decided to launch a branded online site in the latest example that Australian retailers are getting serious about getting online. The new site will mean other retailers need to innovate online to compete.

As recent media reports attest, Australian consumers are on the verge of a major shift in their shopping habits with a recent survey of more than 1000 shoppers confirming a dramatic increase in their willingness to buy online.

Morgan Stanley report that by 2015 online sales overall in Australia are predicted to increase three fold to nearly $30billion. The results show online retailing is beginning to reach mass adoption rates with the number of consumers who have bought online doubling in the last 12 months in some categories. A strong indicator of the growth still to happen is the doubling of consumers who would “consider” buying online.

Purchase of books, videos and travel services are already popular online. The highest growth potential is in categories where sales penetration has so far been relatively low such as hardware, DIY, clothing and furniture. The survey also shows that people who already brought online are now buying a wider range of products, from fitness equipment to stationery and even groceries that had traditionally been an unpopular category. Among those surveyed nearly 7% plan to significantly increase their spending on general merchandise online while 26% will modestly increase their online purchases.

This rise in volume has big implications for retailers. Shoppers who try online purchasing and are satisfied with their initial experience tend to return to the same sites. In a market that is moving quickly from a small base, first movers will have an enormous competitive advantage.