SOUTH Australian businesses must be proactive with their online offerings to ensure they satisfy customers who are increasingly buying from international websites.
Matt Larwood, general manager of Adelaide computer software company Axios IT, said the increased popularity of internet shopping meant it was critical for small to medium enterprises to understand how to generate sales online.
He said a campaign by several Australian retailers, including Harvey Norman, to have GST imposed on goods bought from foreign websites should be a wake-up call for all businesses, not just those in retail.
"There is no question that a growing number of Australians prefer to purchase goods and services online," he said. "This presents ideal opportunities for established businesses to reach wider audiences, expand their customer base and diversify their revenue streams. Price isn't everything and businesses have the ability to deliver better service and turnaround times to customers if they are able to offer an engaging online experience."
In November, Harvey Norman chairman Gerry Harvey said products bought on overseas websites should be taxed by the Federal Government because local retailers faced an "unfair advantage".
Under the present system, Australians can buy products online and not pay GST for items under $1000.
Mr Larwood offered some key tips for SMEs looking to develop their business online:
- DEFINE your target online customer.
- CONSIDER how to generate revenue online from target customers.
- DEVELOP a service that enhances or replaces your existing business.
- ENSURE your online platform is user-friendly.
- ENGAGE an IT developer with experience in helping businesses generate revenue and increase efficiencies online.
Mr Larwood said it was critical to be clear about how income would be generated online. "For retailers and manufacturers, this will likely be the sale of products online," he said.
"For other industries, it might be moving a traditional business model to an online service, enabling them to become more efficient and accessible to customers.
"For information services (companies), this usually involves providing a certain amount of information free-of-charge with full benefits via paid subscription."
Businesses should also allow a minimum of six months to get their online platform up and running well, Mr Larwood said.
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