Online shopping certainly opens up opportunities for rural dwellers and in cities it is also getting much harder to park without being slugged a huge fee. Some people are juggling work and family without the time to shop. All these things make online more attractive.

A friend who lives in the US commented once about the high prices here to which I said yes but our working conditions and minimum pay rates are better so there is more buying power. He also lamented the ridiculously high prices of commercial rents for small business some larger shopping complexes going so far as to grab a piece out of turnover as well as floor space, and giving cheaper or free rent to larger stores (particularly for new malls) to attract customers.

It is a tricky one, Australian retail won't go under completely, many people still like the face-to-face, and pottering around in a good book shop is preferable to buying online, but if you already know what book you want online is quicker and cheaper.

The only way to compete is to reduce prices by reducing labour and other costs. If all wages were reduced by a certain % in a sliding scale along with removing some of the more inhibitive costs to small business, improving competition among other reforms might assist in making retail more competitive. Lowering wages will have an effect on prices but it won't work while the gap between the lowest and highest paid continues to widen. A cap on top end salaries might be one approach.

Many people choose Australian, even online, but this will become more difficult if the trend continues and we find we no longer have any Australian owned companies. Particularly while foreign ownership is fostered by governments with offers of reduced taxes, free land, while Australian owned companies have to compete without.

Lots of aspects to deal with that can only be approached wholistically. Tweaking one bit without attention to the whole, may cause more problems than it solves.

Aussie retailers could start simply by reducing their margins if they wish to compete. JB HiFi has been very successful at it.

Ok, let me put it this way. Digital camera price range in Australia $640,- to $920,-. From Hongkong $405,-
Question. how does one explain the $280,- difference ?
Another Sony camera. $4000,- in Australia, $3200,- in NZ.
It simply costs too much to support an australian dealer and, if you need after sales service you get nowhere.

Don't forget that the currently high A$ is causing a bit of a blip in on-line sales vs store sales. When shopping in predominantly US$ denominated stores, especially ones that "drop-ship" direct from China with no or low shipping fees, it is much more attractive to Aussies these days when their A$ buys so much more.

As the A$ climbs (or climbed over parity), the relative cost difference between the retail store and the on-line store widens to the point where even the most cautious of internet users are willing to give on-line purchases a try.

Personally I buy nearly everything on-line with the exception of food and clothing. The price is great, delivery is quick and convenient, and almost everything comes with the same warranty you'd get in the store.

Why shop online? Try shopping with toddlers in tow. I predominantly shop online now whereas I rarely shopped online prior to having children. I get most of the groceries online - they're more expensive. I buy most of my clothes online (and the children's) - the same price though postage is often additional. My decision to go online is not about price - its about ensuring that my life outside of work is not dominated by shopping. On my days off I take the kids to parks, beaches and pools instead of shops and I think that's a win for everyone including the other shoppers and shop assistants.