A new report from CPM Australia spotlights customer shopping habits ahead of the holiday season, providing insight for retailers ahead of the busiest trading period of the year.
89% of people surveyed said they planned to both shop online and visit brick–and–mortar shops. However, 69% of people said that online marketplaces were still their preferred choice for gift buying.
But while it seems that shoppers aren’t looking to slow down their spending ahead of Christmas, despite the current economy, an increase in trading can bring certain risks for SMEs.
“This is the busiest time of year for retailers, and it’s easy to forget about things like renewing insurance or purchasing new policies,” says Brad Miller, General Manager at BizCover, Australia’s number one business insurance service. “With more and more people turning to online shopping, this could present increased risks for e-commerce SMEs.”
For small retailers, e-commerce presents clear risks. Online sellers are tasked with collecting, transmitting, and storing customer payment details which are valuable to cybercriminals. Yet, many SMEs don’t think they are at risk, despite making up an estimated 43% of cyberattacks in Australia according to one study.
But cyberattacks don’t just affect e-commerce SMEs. If a business has a website, processes payments with an EFTPOS machine, or uses a smart device to conduct business, then it may also be at risk.
“No business owner wants to think about shutting up shop during the busiest trading period of the year because a cyberattack has completely disrupted business,” says Miller. “Cyber insurance can help protect SMEs in the case of a cyberattack or a data breach, including connecting them with 24/7 incident response services to help them contain damage and get back up and running as quickly as possible.”
Many Australians (63%) plan to have their Christmas shopping completed by the end of November, coinciding with Click Frenzy, Black Friday and Cyber Monday. This signals to retailers that they may want to ensure they’re prepared to meet demand well before the beginning of summer.
“Retailers have good reason to be optimistic about the upcoming shopping season,” says Miller. “But it pays to review and update your insurance to make sure you’re properly covered. This gives you peace of mind that you’re protected during the busiest trading period—and all year long.”
