Australia’s $69b Online Shopping Habit Exposed
Australia’s online shopping habits are setting new records. Australians spent an eye-watering $69 billion in 2024 on e-commerce—a 12% jump from 2023. This phenomenal growth in Australia online shopping 2024 was largely driven by the popularity of global platforms like Amazon, Shein, and Temu, as reported in Australia Post’s e-commerce report.
Interestingly, while overall online spending grew, average basket sizes dropped to $95—the lowest in a decade—as consumers sought out cheaper goods across online marketplaces. Here’s a detailed breakdown of the e-commerce trends 2024 and what they reveal about Australia’s shopping behaviour.
Online Shopping in 2024 Continues to Break Records
The pandemic may have planted the seeds for this shopping revolution, but 2024 saw explosive growth in online retail. Australians spent almost double on e-commerce compared to 2019’s $28.5 billion.
“We had three years of relatively flat growth, and [now] it’s jumped up to $69 billion,” noted Gary Starr, Executive General Manager at Australia Post. He also highlighted how cost-of-living pressures still heavily influenced consumer behaviour.
Remarkably, more households than ever joined the online shopping wave, with 9.8 million households purchasing goods online, compared to 9.5 million the previous year.
Millennials Lead the Way
Millennials flexed their purchasing power by topping the charts with a massive $24.9 billion in spending. Gen X trailed with $19.2 billion, followed by Gen Z at $11.9 billion. Even older Australians embraced the trend—Baby Boomers spent $10.1 billion, a 17.6% increase from last year. Meanwhile, “Builders” (those born between 1925 and 1945) witnessed a whopping 22.9% growth in spending.
E-commerce Giants Dominate the Market
2024 saw a seismic shift in Australia’s e-commerce ecosystem. Once-dominant platforms like eBay, Etsy, and Redbubble lost ground to global powerhouses like Amazon, Shein, and Temu.
Amazon has been particularly influential since entering the Australian market over seven years ago. Its ability to meet high consumer expectations—including speedy delivery—set a new standard for e-commerce.
“Globally, we see a massive leap in adoption when marketplace platforms deliver same-day or faster services,” explained Jordan Berke, a US retail consultant and former Walmart executive.
Fast-fashion monoliths Shein and Temu gained momentum by delivering ultra-low prices. According to Roy Morgan, about 4 million Australians purchased from Temu, while 2 million shopped on Shein. Temu alone is projected to exceed $2 billion in sales, further solidifying its dominance.
Shift in Shopping Categories
Interestingly, spending on fashion and recreational goods marked slower growth in 2024 compared to previous years. Many consumers shifted these purchases to online marketplaces, which offer competitive prices and greater variety.
Smaller Basket Sizes Reflect Spending Habits
While total spending surged, the average amount spent per transaction shrank. Before the pandemic, basket sizes were considerably higher, but 2024’s shift to cost-conscious shopping brought the average down. Online marketplaces—known for their affordability—played a considerable role in this trend.
On average, Australians shopped across 16 different retailers, taking extra steps to compare prices and nab the best bargains. Grocery giants like Woolworths and Coles also noticed consumers splitting their shopping across more stores in search of better savings.
Australia is Shopping Smarter During Sales
With 93% of Australians deeply concerned about cost-of-living pressures, it’s no surprise that sales events had a significant impact. Mega sales events like Black Friday and Click Frenzy saw heightened activity as household budgets stretched to make every dollar count.
Click Frenzy posted the highest growth in online purchases at 16.6%, while early Black Friday sales boosted November spending. “Consumers will wait for the sales. It stretches their dollar and allows more flexibility in switching brands,” Starr highlighted.
Meanwhile, spending on necessities like health, education, rent, and insurance grew by 4.6%. This outpaced discretionary spending, which rose by just 3.3%, underscoring how essential purchases took precedence in strained financial times.
The Role of Delivery Speeds and Free Shipping
For Australian online shoppers, the delivery experience remains a crucial factor in overall satisfaction. Australia Post’s report reveals that 8 in 10 consumers consider delivery speed important, while 56% rank free shipping as their top priority.
Delivery quality also plays a critical role in customer loyalty. Nearly half of global online shoppers stated that free shipping was the primary motivator for making repeat purchases. Additionally, younger generations—Millennials and Gen X—stand out for their high expectations, demanding faster delivery times.
Australia Online Shopping 2024: Trends Shaping the Future
While online marketplaces dominate today, the landscape continues to evolve. Convenience, affordability, and delivery speed remain the driving factors behind Australia’s e-commerce trends 2024. With tech-savvy platforms like Amazon, Shein, and Temu leading the charge, shoppers are redefining how and where they buy goods.
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