Myer today announced that it is offering free shipping for online orders. According to the news.com.au report, currently $5million is spent on the Myer website annually, and there are ambitions to drive this closer to $50million.
Will free shipping make a difference?
But is it too little, too late? Australians are already shopping online at local and overseas retailers, but to achieve the ambitions stated by Myer, surely more than saving a few dollars on shipping will be required.
To counter the volume of online sales occurring at overseas retailers, some of the major retailers tried to pressure the government to lift the restrictions that allow purchases under $1000 to not have to pay GST.
It remains to be seen whether the small differences of free shipping or perhaps adding 10% to purchases if the GST was applied, will make Australians any more likely to shop online with local retailers.
The internet introduced transparency to the Australian shopper – it is incredibly simple for shoppers to gain an understanding of comparable prices, particularly at overseas retailers. Although retailers can explain away why they have to charge high prices, due to high local retail rental, higher local wages, ultimately many Australian shoppers still feel that prices are too high.