Australian eCommerce Statistics 2023

Ecommerce is evolving and growing in Australia’s business landscape in 2023. With the advent of convenient and contactless shopping, knowing the latest industry figures is crucial to stay on par with your competition.

We have compiled the latest Australian eCommerce statistics for 2023 to keep you informed about rising trends and data-driven consumer behaviour. 

Australian eCommerce Shoppers Statistics

The shift towards work-from-home policies and movement restrictions drove Aussies towards retail therapy. Online shopping has become a means to kill boredom – leading eCommerce traffic to record-high figures.

In 2020, 5.1 million Australian households used online shopping websites monthly, a 39% increase from the previous year. Users from April to December consistently exceeded the population average, peaking at 5.68 million in the last month.

Number of households who participated in online shopping in Australia in 2020 (in millions)

Australian households that shopped through eCommerce

Looking into the personal scale, 19.45 million Aussies have checked out their eCommerce carts, spending up to 38.26 billion in total, a 27% increase from 2019.

A 2022 study by Hootsuite and We Are Social about Australia’s eCommerce landscape showed that:

  • 52.7% of internet users purchased goods or services online;
  • 20.9% of users bought groceries in an online store;
  • 19.2% of customers consulted a price comparison website before making a purchase;
  • 13.2% used a buy now pay later service for their online transactions;
  • 13.1% of Aussies bought a second-hand item via an online marketplace;

Free Delivery services are the primary driver for eCommerce purchases among 60.93% of internet users between 16 and 64. Other effective sales drivers include:

  • Discount and cashback coupons: 36.5%
  • Hassle-free return service: 35.8%
  • Loyalty rewards and points: 34.1
  • Positive customer reviews: 32.6%

Australian eCommerce Spending Statistics

Ecommerce spending in 2022 skyrocketed at an all-time high, with fashion products at the top spot reaching $9.7 billion in sales. In September 2021 alone, Australia recorded a total retail turnover of more than $4 million, about a $1 million increase from September 2020, which is shy of $3 million.

For the same month, non-food retail generated $3.25 million in sales, while Aussies spent roughly $1.16 million on food products.

Australia Post’s 2021 eCommerce insights reported that online consumers spent over $62.3 billion on eCommerce products in 2021. Additionally, four out of five Australian households visit and shop on eCommerce sites, increasing yearly national growth by 12.3%.

In a week, the average Aussie checked out around $228 online. Gen Y shoppers are record spenders at $308 a week, while baby boomers rank last at $54.

New South Wales consumers also spend more than any other state, ranking first at $257. On the other hand, West Australians ranked last, spending only $164 weekly.

At such record-high figures, businesses expect the Australian eCommerce market to grow throughout the coming months and peak during the holiday seasons.

Where Do Aussies Spend Their Money?

As of February 2022, Australians spent $8.9 billion on electronics, just behind fashion products. Toys, DIY, and hobby products accounted for $4.52 billion, a $1 million increase on a year-on-year change.

Consumers spent more than $4.50 billion on personal and household products, about $3.7 billion each on food and furniture, and $2.65 billion on beverages. 

Finally, physical media such as Blu-Ray discs and collectibles accounted for almost $818 million in eCommerce sales.

Here is a breakdown of year-on-year (YOY) changes in the said categories:

  • Fashion: +25% (+$1.9 billion)
  • Electronics: +23% (+$1.6 billion)
  • Toys, DIY, hobby: +30 (+$1 billion)
  • Personal & household care: +30% (+$1 billion)
  • Food: +64% (+$1.4 billion)
  • Furniture: +13% (+425 million)
  • Beverages: +21% (+468 million)
  • Physical media: +9.3% (+$69 million)

Australians Buying Frequency Increases

A recent eCommerce behaviour study found that Australians shop online more frequently. Australia Post recorded a 12.3% YOY increase and a 73% growth in purchase frequency compared to 2019.

Australia Post YOY Growth

However, the recent health crisis significantly affected movement and physical transactions, forcing many businesses to close their doors.

In 2022 and heading into 2023, Australians are witnessing the economy’s slow yet consistent recovery, and retail shops and shopping centres will certainly get busy as local councils slowly lift restrictions.

The latest Online Retail study found that 60.93% of Australians would shop online if shipping were free. Furthermore, about 11% of users will prefer eCommerce shops that deliver within 2 hours.

With a massive 64% rise in food products, guaranteed fresh fruits and veggies are vital in encouraging 16.87% of people to shop online.

Popular Online Retail Stores in 2022

General merchandise and variety stores saw a 74.1% YOY growth in eCommerce sales. Food and liquor followed second with 69.5% growth, while home and garden stores ranked third with a 61.2% increase.

Fashion retail grew by 43.8% year-over-year, while hobby and recreational goods experienced year-over-year growth of 41.5%. Beauty and health (34.1%) and media retail (30.1%) had the slowest YOY growth.

Online marketplaces also saw a significant rise in traffic. eBay documented a 61.7% increase in visits, while Amazon reported a 28.5% traffic growth.

Some marketplaces lagged behind the list, including Trade Me with only 17.7% growth, with 7.2%, The Iconic (6.4%), and My Deal at only 3.5% YOY growth.

Shopify is now being used by over 1.75+ million merchants worldwide and by leading brands such as Gucci, Nike, Red Bull, Gymshark, and Budweiser, amongst many others.

Which Australian States Spend the Most in eCommerce?

A 2022 Australian online shopping survey reported that New South Wales (NSW) and the Australian Capital Territory (ACT) consistently recorded the highest eCommerce growth since 2019. NSW saw a 76.1% growth in eCommerce sales in 2021 and a 14.1% increase in YOY growth in purchases.

The top buying suburbs in terms of purchase volume are:

  • Point Cook, VIC
  • Liverpool, NSW
  • Hoppers Crossing, VIC

Australia Post predicts the following suburbs to experience the greatest growth in upcoming years:

  • Riverstone, NSW
  • Rockbank, VIC
  • Fraser Rise, VIC

Sustainability is a Need for eCommerce in 2022

Australians expect industry leaders to take action toward corporate action and sustainability. 

A KPMG study on the Australian retail outlook showed that 80% of users will buy from businesses that value environmental, social, and governance (ESG). More than half (54%) of Aussies also said that a brand’s ecological stance impacts their purchasing decisions.

About 75% of consumers also look into sustainability elements when shopping online. Industry trends are shifting towards sustainable packaging and eco-friendly product materials, and 60% are willing to pay more for packaging with a low carbon footprint and ethically-made products.

From a business perspective, 34% of brands adopting sustainable practices experienced growth in sales, consumer loyalty, and improved company culture.

To become a sustainable business, Australia Post recommends:

  • Creating and sharing your brand’s sustainability goals
  • Delivering on your brand commitments
  • Offering sustainable delivery options and packaging

Holiday Retail Shopping Statistics 2022

62% of Gen Z consumers intended to shop on the latest Black Friday and Cyber Monday sales, while 48% of Gen Y, 27% of Gen X, and 9% of baby boomers planned to check out online.

Clothes and footwear were reported to be the most popular products during those sale periods at 42% of sales. Food and alcohol followed with 33%, and gadgets/electronics ranked third at 25%.

Toys were the fourth-most purchased products at 24%, while cosmetics documented 16% growth in sales.

During Christmas, 58% of Aussies claimed to have spent more than the previous year. This can be due to Australia’s stable recovery after a series of lockdowns. On average, consumers across all recorded age groups spent around $726.

Leading eCommerce Payment Methods in 2022

Secure online and hassle-free payment solutions streamline user purchases and positively impact your brand’s eCommerce capabilities. Over the past year, 75% of Aussies pay using e-wallets and bank cards, while 16% prefer bank transfers. Only 5% of customers choose cash-based payments.

A 2022 industry survey reported that 87% of consumers have used PayPal as a primary digital payment service, followed by BPAY at 61%, AfterPay at 37%, and Google Pay at 21%.

Payment Express (4%) and Stripe (3%) were the least popular payment solutions.

Final Thoughts

Australia’s eCommerce landscape in 2023 is on its way toward post-pandemic recovery – and the rise in sales will be exponential. Despite the predicted economic downturn, many shoppers are willing to shop at their favourite eCommerce brands and return frequently.

It’s no secret that Australian consumers are quicker to adopt new digital payment methods and that eCommerce adoption will continue to grow in the long run despite the economic slowdown.

If you’re an Australian eCommerce brand looking to partner with an experienced eCommerce SEO agency to grow your sales and revenue, reach out and speak with our growth specialists today. 

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