STATE by state breakdown of eCommerce trends. 9.5M households shopped online in the past year, that’s 82%of all Australian households, up 1.4%year-on-year (YoY).
Baby Boomers spent almost $1M more than they did last year. Average basket size was $98, down 4.6% from last year.
Australia Post released its 2024 Inside Australian Online Shopping Report, providing exclusive insight into which Aussies spent the most online in the past year.
According to the data,9.5million Australian households shopped online in2023, spending $63.6B on online goods, down 1.2%from the year prior. Online shopping has remained largely flat with less spent online compared to last year, but the number of online purchases increased as Aussies turned to smaller, more frequent buys.
Cost-of-living pressures driving more cautious spending in 2023 has also highlighted a clear generational gap in spending habits. Gen Y (millennials) spent more than any other generation ($22.1B despite their average basket size declining by–2%YoY ($95).
Gen X followed suit, spending $17.47B online while their average basket size declined by 5% to $110and Gen Z spent the least ($10.64B), choosing more budget-friendly purchases with $80 as the average basket size. Bucking this trend, Baby Boomers spent 7% more than the prior year ($109 average basket size).
Social researcher and generational expert Claire Madden commented: “We’re seeing a growing confidence in older generations spending more than younger generations in each transaction. While Gen Z don’t currently have the same earning capacity as older generations, they are showing they are still active, savvy, online shoppers who have a focus on lifestyle spend and search for good value.”
Aussies spent the most on home and garden ($16B), a category which traditionally has more expensive items like furniture. The two categories that showed growth were variety stores ($15.8B ,with YoY growth of 9.1%)and food and liquor ($13.2B,with YoY growth of 2.4%), showing consumers aren’t afraid to shop around for a better deal as cost-of-living pressures continue to take effect.
Interesting comparisons can halopemide state versus state. Across the country, West Australians embraced the online shopping trend with the strongest YoY growth in number of online purchases of the states/territories(5.1%), followed closely by the Northern Territory (4.6%) and Queensland and Tasmania (4.3%each).The significant 18% increase in online shopping activity since 2019 in remote and regional Australian attributed to population growth post COVID-19 and convenience, while Victoria and NSW saw a drop in online purchases, with both states returning to normal shopping habits since the pandemic.
Australia Post Executive General Manager Parcel, Post and eCommerce services Gary Starr said eCommerce has now established itself as the new normal in Australian retail and is an integral part of the overall retail experience.
“Australians are shopping online more often, with1 in7 households shopping weekly. While basket sizes were smaller this year, the increasing trend in repeat shopping highlights the reliance on Commerce in everyday life.9.5 million households received a parcel in 2023, that’s8 in 10 households making an online purchase andover1.5million more Aussies shopping online compared to 2019.