Aussies 'are wary of rip-off online traders'

The rapid emergence of online shopping has been quite incredible and it has never been easier for Aussies to purchase goods ranging from clothes to food.

One of the biggest advantages of searching the internet for different retailers is that there is far more choice than on the high street.

Aussies can find a particular product and then scour the web for shops that sell it for the cheapest price.

This has made it far more difficult for Aussie merchants to compete, as shoppers can quite easily get goods shipped in from overseas for less money.

The strength of the Aussie dollar is certainly not helping local businesses, but it seems that many are also shooting themselves in the foot.

According to a new study by global information specialist Experian Marketing Services, a lot of Australian firms have alienated their customers by charging excessive delivery fees, News Limited reports.

It surveyed 300 companies across a number of sectors – including office supplies, fashion, health and beauty, groceries and automotive – and found that less than one in four offer free delivery.

The average shipping price was said to be between $25 and $30, so it is hardly surprising that many Aussies are avoiding these retailers.

However, it is easy to sympathise with domestic traders and National Retail Association executive director Trevor Evans believes they are burdened by higher costs and taxes.

"Australian retailers are competing with one arm tied around their back while just a click away a foreign retailer doesn't have to pay GST [goods and services tax] nor does the consumer pay duty," he was quoted as saying.

With Aussies increasingly using their debit cards to make purchases via their laptops and mobile phones, it is safe to say that companies will have to find a solution to their current plight very quickly.

Indeed, the same news provider highlighted a recent independent study that showed a five per cent rise in the number of young Aussies with children and a mortgage using their smartphones to purchase goods.

Got a question about debit cards? Ask the money experts at Mozo Answers.ADNFCR-1761-ID-801460658-ADNFCR