Online shopping behavior in Australia - statistics & facts
Online shopping plays a major part in the everyday lives of consumers across Australia, with the country boasting one of the fastest-growing e-commerce retail markets worldwide. Accelerated by the pandemic-induced e-commerce boom, Australia’s online retail sales have increased substantially over the past few years. Following lockdown periods, forcing many brick-and-mortar retail outlets to close or operate under extensive restriction, many Australians shifted towards digital purchasing channels for not only discretionary items but also necessities such as groceries. While e-commerce growth plateaued in 2023, online retailing is expected to expand in the coming years, slowly eating into the offline sales share as consumers increasingly recognize the perks of online and omnichannel shopping.
Clothing and shoes, as well as groceries, are the most prevalent purchase categories among Australia’s online shoppers, with 70 percent of shoppers reporting buying apparel items online in financial year 2023. To pay for all this online shopping, PayPal remains the most popular digital payment method. Buy Now, Pay Later (BNPL) services like Afterpay are also seeing increased usage, with Australia’s BNPL payments share of e-commerce payments the highest in the Asia-Pacific region. Nevertheless, bank-issued debit and credit cards are still more commonly used by around half of all online shoppers.
Online marketplaces are thriving
Online marketplaces have become increasingly popular among Australian consumers in recent years, offering a wide range of goods, convenience, and the opportunity to buy and sell secondhand goods. Digital retailers eBay and Amazon, as well as department store chain Kmart, have been competing for the top spot in the country’s online retail landscape for many years. E-commerce giant Amazon pipped eBay and Kmart to the post in 2023, with around 43 percent of online shoppers reporting purchasing from the shopping site in the 12 months to July 2023. Marketplaces including Catch, Kogan, and MyDeal saw lower engagement in 2023, with several shoppers seeming to have more confidence in online stores with a physical shopfront, such as Coles, Woolworths, Big W, and Bunnings.Clothing and shoes, as well as groceries, are the most prevalent purchase categories among Australia’s online shoppers, with 70 percent of shoppers reporting buying apparel items online in financial year 2023. To pay for all this online shopping, PayPal remains the most popular digital payment method. Buy Now, Pay Later (BNPL) services like Afterpay are also seeing increased usage, with Australia’s BNPL payments share of e-commerce payments the highest in the Asia-Pacific region. Nevertheless, bank-issued debit and credit cards are still more commonly used by around half of all online shoppers.
