The recent ABS data relating on online business shows that whilst the total number of active businesses fell, online revenue grew by about 8%, compared with 4% the previous year. The number of firms fell from 770,000 to 757,000 (reflecting tough trading conditions, see our SME surveys). However overall internet generated income rose from $246 billion to $267 billion, which is about 15% of GDP.
Collection of data included in this release was undertaken based on a random sample of approximately 6,640 businesses via online forms or mail-out questionnaire. The sample was stratified by industry and an employment-based size indicator. All businesses identified as having 300 or more employees were included in the sample. The 2013-14 survey was dispatched in late October 2014.
The survey shows a significant rise in a social media presence up 18%, but this compares with a massive 44% increase in the prior year. We also see a rise in orders placed via the internet (up 4%), and fulfilled via the internet (up 10%). Almost all firms have broadband access.
Finally, average annual income for a small firm was more than $4,000, compared with a medium firm of $17,000. Larger firms generated more income, and the four largest employers generated on average $3.6 million.
Commerce through the internet is both mainstream, and likely to grow further, supported by the deeper penetration of smart phones and tablets, which enhance customer convenience, and innovation in terms of products and services. See our recent post. Many firms now see online as just another channel to market, but there are industry variations.
We see, for example that Information, Media and Telecommunications are some of the most active, whilst in finance and insurance, only 60% have a web presence, and 30% have a social media presence.
