Fifty-eight per cent of local internet users shop online: A figure which increased by 23 per cent between September 2006 and April 2008.

This was announced yesterday as part of the results of the fourth e-Commerce survey aimed at gaining insight into the level of e-Commerce across the Maltese Islands and potential growth, which the Malta Communications Authority (MCA) commissioned. Trends and changes in buying behavioural patterns were identified by comparing the survey, carried out between 25 March and 9 April, 2008 with the previous surveys.

The main reasons for online purchases were better prices, convenience and products not being available locally.

While the main reasons for online shopping remain the same as in the previous survey, a shift in favour of electronic goods was noted. Online shopping for books decreased by nine per cent over the previous survey of September 2007. Book purchases now came second, after the purchase of electronic goods. It was also noted that mobile top-up decreased by 11 per cent over the same period.

The purchase of CDs and DVDs also decreased by five per cent and one per cent respectively.

On the other hand, the purchase of clothing items increased by 10 per cent while the purchase of cosmetics increased by two per cent over the same period.

Moreover, a significant increase of four per cent was registered over the buying of spare parts. Hotel accommodation bookings and flight reservations increased by five per cent and one per cent respectively.

A key finding was that the majority of e-Commerce users prefer foreign sites to Maltese sites. The latter are mainly used for mobile top-up even though this decreased significantly since the previous survey.

While 79 per cent of the interviewees had claimed buying only from foreign sites, only two per cent claim to buy only from local sites. 19 per cent of those interviewed claim to buy from both local and foreign sites.

Interestingly, e-Commerce users are purchasing more and spending more. In the September 2007 survey, 10 per cent of those interviewed said they used the internet for buying things more than 10 times within the past six months. This figure increased by five per cent to 15 per cent in the last survey.

Those claiming to have spent over e120 increased by four per cent between September 2007 and last April, that is from 52 per cent to 56 per cent.

The most encountered problem which e-commerce users claim to have ever experienced was related to the delivery of goods. 26 per cent of those interviewed claim to have experienced at least one problem when buying online. Besides delivery problems, slight problems related to the payment process and internet connection problems were registered.

37 per cent of e-commerce users have no concerns over such buying processes or are willing to take the risk. Security and no delivery are chief concerns among e-Commerce users.

Lack of trust, never having bothered to shop online and a preference to see and touch before buying were the major reasons claimed for not buying online.

It was also noted that the trend in ongoing growth in internet access and usage continued. A growth of 27 per cent was registered over the September 2006 survey, thus 53 per cent of those interviewed last April use the internet. Moreover, nearly 75 per cent of internet users spent at least one hour per week on the net while over 25 per cent spent over 20 hours a week browsing the net.

In an address to the media, Infrastructure, Transport and Communications Minister Austin Gatt said that Maltese companies were not exploiting e-Commerce opportunities. Although a tax credit of up to e12,000 was given to local companies creating an online shopping system, the government had only received 54 applications, Dr Gatt said. Gozitan companies could especially benefit from selling online, he continued.

When The Malta Independent asked whether local companies used e-Commerce themselves for importing goods, the minister replied that around 40 per cent made full use of the system for themselves.

Smaller companies were the main ones who use the e-Commerce system while this figure was continuously on the rise, he said.

Moreover, 98 per cent of local companies had the necessary hardware for online shopping but were still reluctant to give their customers the opportunity of shopping from the comfort of their homes.