Australia Post’s annual eCommerce Report has revealed that Australians spent a record A$69m (US$43.6m) on e-commerce in 2024, a 12% increase on the previous year.
According to the report, 9.8 million households shopped online last year, spending the most at online marketplaces (almost A$16bn/US$10.1bn), on food and liquor (A$13.6bn/US$8.6bn) and fashion and apparel (A$9.6bn/US$6bn). Almost half of Gen Z and millennials made an online purchase every week via social media.
However, average basket size dropped 2.1% year-on-year to A$95 (US$60), due to the continuing cost-of-living pressures in the country. This is the lowest basket value in a decade, according to the report.
Jordan Berke, the founder of global retail advisory firm Tomorrow Retail Consulting, commented, “The integration of content and commerce is rapidly enhancing the e-commerce channel, offering retailers a unique opportunity to leverage storytelling to connect with consumers.
“Five billion people now use social media, and retailers can’t ignore the progressive shift to shopping on social channels. The earlier a business can learn to stand out via social, the better they will be positioned in the years to come,” he added.
According to Australia Post, today’s online shoppers are now sharing their dollars across an average of 16 retailers, making it easy to compare to find the best price, which can reduce customer loyalty.
Gary Starr, Australia Post executive general manager of parcel, post and e-commerce services, explained, “With cost-of-living pressures and high inflation an ongoing concern, Aussies turn to key sales events and loyalty programs to stretch their dollar further.
“We know that three-quarters of businesses are concerned that frequent sales events are training shoppers to only buy goods that are on sale. But we have to embrace that Aussies love a sale and strategic shopping has now become the norm.”
He continued, “As online shopping continues to outpace bricks and mortar, retailers who don’t participate in as many sales events throughout the year should consider developing an enticing loyalty strategy. That could be via a subscription or other forms of rewards and points to create loyalty, consistency and repeat purchases.”