AUSTRALIA WINS: The Nation Is Ranked Best In the World For E-Commerce Readiness

Australia has topped the list of G20 nations best prepared to take advantage of e-trade

The G20 e-Trade Readiness Index, a new ranking published by The Economist Intelligence Unit and sponsored by eBay, looks at how prepared G20 countries are to capitalise on global e-trade opportunities.

At the top, the index shows Australia’s all-round strength, particularly its affordable Internet access, high smartphone penetration and use of electronic payment methods. Island nations fared well, making up three of the top five spots—as well as Australia, the UK came in fourth and Japan in fifth. These economies have long relied on international trade and look well-positioned to continue this with e-trade opportunities.

The report also warns that customs and regulatory restrictions could hamper SMEs’ (Small and medium enterprises) ability to grow through e-trade. SMEs tend to ship smaller parcels to a variety of locations and cannot always benefit from shipping in bulk. Customs procedures in some countries can also be more trouble than they are worth for small packages.

The Australian Government’s commitment to rolling out the National Broadband Network, despite a few road blocks, was one factor which boosted Australia’s score. Another was the early adopter status Australia and widespread acceptance and regulation of e-commerce and e-payments.

It found while Australia’s distance to market has in the past been an issue, the rise of e-trade has seen this shorten. A theme which has been repeated in the UK and Japan as well – both are, like Australia, developed island nations with a reliance on international trade.

But the country’s international trade environment ranking in the index was hurt by high container import and export costs. “Australia can continue to improve should it have more competitive domestic and international shipping systems,” the report noted.

The index found the G20 nations are all at very different stages of developing international e-trade.

By Adriana Rueda

Source: Business Insider Australia

Image: Getty