Australia was one of the first to embrace the Internet as a communication and information medium, however countries with denser urban populations and hi tech indutries like Korea, Taiwan, Japan and Singapore are leading the world in terms of internet penetration.

However Internet usage and penetration in Australia is sound and showing good growth in a generally middling global economy. Shopping, banking and e-commerce activities are now becoming more acceptable and the Australian consumer seems to be getting over their discomfort with the medium, as e-commerce gradually becomes mainstream.

IDC recently reported findings from a survey of 510 urban Internet users showing that the Internet is used by the sample mainly for communication, information, finances, holiday booking and shopping.

Thirty Four % of respondents had bought products or services over the Internet during the past 12 months, and this is expected to increase to 52% by 2005.

Most interesting however, was the trend towards purchasing from local rather than US sites. Around 35 percent of purchases are still from US websites, especially in the case of consumer products such as music releases, DVDs and consumer electronices that are released first in the US. However, IDC reports that the value of transactions directed to U.S. sites has declined. Around 42 percent of Australian e-commerce spending is now being directed to local sites.