Another barrier was that margins were tight for many SME retailers and they could not afford to hire a Web developer.

In addition, online purchases under $1000 do not attract a Goods and Services Tax (GST) which has drawn the ire of Australian retailers such as Harvey Norman co-founder, .

"We are working with the Federal Government taskforce on this issue because we want to see a $1 threshold [for online purchases] so there is a level playing field across the industry," Michael said.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow Computerworld Australia on Twitter: @ComputerworldAU