REASONS FOR NOT RECEIVING ORDERS VIA THE INTERNET

Businesses that reported having access to the internet but did not receive orders via the internet during the year ended 30 June 2012 were asked to identify the reasons why. Businesses were provided with multiple options and could identify more than one reason.

Over half of these businesses reported that their goods or services were unsuitable (54%), making this the most commonly reported reason for not receiving orders via the internet. Security concerns was the least frequently reported listed reason for not receiving orders via the internet, at 2%.

Reasons for not receiving orders via the internet, by employment size(a)(b), 2011-12
	0-4 persons	5-19 persons	20-199 persons	200 or more persons	Total
	%	%	%	%	%
Goods or services produced by this business unsuitable	51.4	55.7	65.7	66.8	53.8
Lack of customer demand	12.8	11.4	8.9	8.0	12.1
Security concerns	2.3	2.9	0.9	3.0	2.3
Costs to develop and maintain the technology too high	7.1	10.1	6.2	7.2	7.9
Lack of technical expertise within this business to develop, maintain and use the technology	7.7	10.2	9.0	6.9	8.5
Prefer to maintain current business model (e.g. face to face interaction)	43.2	37.4	31.8	33.7	40.7
Other	4.2	4.6	3.5	2.5	4.2
(a) Proportions are of all businesses with internet access that did not receive orders via the internet.
(b) Businesses could identify more than one reason.

The likelihood that businesses reported goods or services produced by this business unsuitable increased with each successive employment size range, from 51% of businesses with 0-4 persons employed to 67% of businesses with 200 or more persons employed. Conversely, the likelihood that a business reported lack of customer demand decreased with each successive employment size range, from 13% of businesses with 0-4 persons employed to 8% of businesses with 200 or more persons employed.

For each employment size range, the second most frequently reported reason for not receiving orders via the internet was that the business prefers to maintain their current business model. This was most frequently reported by businesses with 0-4 persons employed, at 43%.

By industry, businesses within Retail trade were the most likely to report both costs to develop and maintain the technology too high and lack of technical expertise within this business to develop, maintain and use the technology as reasons for not receiving orders via the internet (22% and 20% respectively). Businesses in Wholesale trade were the most likely to report lack of customer demand as a reason, at 18%, which was more than three times as likely as businesses in Mining (5%).

Further data relating to reasons for not receiving orders via the internet can be accessed via the Downloads tab.

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