Australians are buying more than ever online, but cost-of-living pressures are resulting in smaller checkout bundles, according to new data.
Australians spent a record $69 billion online last year, up 12 per cent from the year before, according to Australia Post’s yearly ecommerce report.
The report found 9.8 million households shopped online in 2024, up 2.3 per cent on the year before, eclipsing the number of households counted in the 2021 Census.
Australians spent nearly $16 billion in online marketplaces and $13.6 billion on food and alcohol, while fashion grossed the third biggest outlay by sector at $9.6 billion.
Cost-pressures reduced the average basket size by 2.1 per cent to $95, and contributed to a record-breaking $2.2 billion spend during the November Cyber sales period.
“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,” Australia Post’s parcels executive general manager Gary Starr said.
However, three-quarters of businesses were concerned frequent sales events were stopping shoppers from buying during non-sale periods, he said.
“But we have to embrace that Aussies love a sale and strategic shopping has now become the norm,” Mr Starr said.
“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.”
Millennials led the spending, dropping $25 billion online, followed by Generation X, who spent $19 billion, while Gen Z spent $12 billion and Baby Boomers spent $10 billion.
By state, online shopping in the NT grew the fastest in 2024 at 11.3 per cent, followed by Tasmania at 11.1 per cent and Queensland, which grew 7.3 per cent.
The intersection of social media content and commerce was growing with younger age groups, according to Tomorrow Retailing Consulting founder Jordan Berke.
“Five billion people now use social media, and retailers can’t ignore the progressive shift to shopping on social channels,” Mr Berke said.
“The earlier a business can learn to stand out via social, the better they will be positioned in the years to come.”