In around twenty-five years ago, the internet has played an important role in people’s lives and countries’ economies. The number of people using the internet has increased rapidly over time. In addition, they use it in every part in their daily life. In the begging, people used the internet to search and find information or formal using. These days, more people use it for shopping. Online shopping letting customers get information about a product and buy it from a seller through the internet by using web sites. These days, online shopping has become diffuse for people and retailers. Retailers have realized that they should not be late to the party. Therefore, retailers have changed to continue with this growth. Moreover, they know that E-commerce
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The number of consumers from diverse age groups using online shopping is increasing quickly worldwide. From 2006 to 2008, the Percentage of Australians using the internet used it for purchases had increased from 61% to 64% (Australia in the digital economy 2010). This will increase the number of sales that will positively affect businesses. Ruslan Kogan is a retailer who has just a website to sell products. Kogan sold 100,000 products worldwide in 2006 since his website has established. In Australia, online purchases under $1000 are without GST, and this is the main reason for increasing the number of consumers through the internet (Apostolou 2011, p.32). In the last few months, more than half of Australians are shopping over the internet (Bainbridge 2013). Tony Davis mentions that online shoppers are not only young people but also older (Apostolou 2011, p.33). So it is clear that the size of market has been directly proportional to the number of …show more content…
Lower prices lead to the increasing size of the market. When people are looking for lower price products, they are looking throughout the world. Kogan says that the cost will be low when products are designed in Australia and are manufactured in Asia (Apostolou 2011, p.33). Therefore, a decrease in price will increase the number of sales. For instance, twenty years ago, computers and cell phones were limited because their prices were expensive. However, these days, everyone has a computer and a cell phone. Thus, the market size has changed inversely with low
The number of consumers from diverse age groups using online shopping is increasing quickly worldwide. From 2006 to 2008, the Percentage of Australians using the internet used it for purchases had increased from 61% to 64% (Australia in the digital economy 2010). This will increase the number of sales that will positively affect businesses. Ruslan Kogan is a retailer who has just a website to sell products. Kogan sold 100,000 products worldwide in 2006 since his website has established. In Australia, online purchases under $1000 are without GST, and this is the main reason for increasing the number of consumers through the internet (Apostolou 2011, p.32). In the last few months, more than half of Australians are shopping over the internet (Bainbridge 2013). Tony Davis mentions that online shoppers are not only young people but also older (Apostolou 2011, p.33). So it is clear that the size of market has been directly proportional to the number of …show more content…
Lower prices lead to the increasing size of the market. When people are looking for lower price products, they are looking throughout the world. Kogan says that the cost will be low when products are designed in Australia and are manufactured in Asia (Apostolou 2011, p.33). Therefore, a decrease in price will increase the number of sales. For instance, twenty years ago, computers and cell phones were limited because their prices were expensive. However, these days, everyone has a computer and a cell phone. Thus, the market size has changed inversely with low