Amid pressure from suppliers and manufacturers over online sales, Australian eCommerce businesses have had a successful 2010 and are optimistic about the next 12 months, according to a major annual survey of Australian businesses engaged in eCommerce.

Results of eBay’s second Online Business Index (OBI) show nearly seven out of 10 respondents among the largest sellers on eBay.com.au said that they were optimistic about the business outlook for the coming year – a slight increase over 2010. Indicative of this optimism, online businesses expected to increase staff from an average of 4.4 paid employees to an average of 6 over the next 12 months.

Although the eCommerce market remains confident, the OBI uncovered a surprising issue. The majority of respondents had experienced difficulties with manufacturers and suppliers who tried to prevent the sale of their products online.

The research revealed that 35 per cent faced issues with manufacturers/suppliers trying to prevent them from selling their goods on the internet or on particular websites. Twenty-five per cent were required to sell their products at or around a particular recommended retail price, while 22 per cent experienced unexplained problems from manufacturers or suppliers which they suspect was due to selling their products over the internet
Deborah Sharkey, eBay Vice President, will today launch the 2011 OBI with Senator Stephen Conroy, Minister for Broadband, Communications and the Digital Economy, at Parliament House in Canberra. Together with three of the largest sellers on eBay.com.au, Ms Sharkey and Senator Conroy will gather support for a healthy and competitive Australian eCommerce market.

Ms Sharkey said: “Turnover for the top 2,000 Australian businesses on eBay.com.au grew by 38 per cent in 2010, clearly demonstrating that consumers have a robust appetite for domestic goods and for purchasing online. Research demonstrates that one of the main reasons Australians buy online from overseas-based sellers is due to many popular products not being offered online locally. Restrictive practices by manufacturers and wholesalers, uncovered in the OBI research, mean that local businesses are unable to offer the full range of goods their customers want and that needs to change,” said Sharkey.

Kirsty Chapman-Smith, co-owner of Deals4Kids, a South Australia-based party supplies company is expected to turn over $450,000 in 2011, up from $250,000 the previous year. Chapman-Smith says her company’s growth has not come without its share of challenges, which include issues with suppliers who do not sell to online retailers.

“Many suppliers I’ve spoken to don’t want to lose the business of long standing retail partners, despite the fact that more and more consumers are moving online to make their purchases. It’s become an issue of both loyalty and adapting to new sales channels. Suppliers should be working to promote a healthy and competitive retail environment, which benefits consumers and gives them increased selection at competitive prices,” Ms Chapman-Smith said.