2024 Australia Post eCommerce Industry Report

ResearchStatisticseCommerce
Written By Paul Dillon

Australia Post has released the 9th edition of the Inside Australian Online Shopping Report, its in-depth study into consumer buying behaviours and trends. To provide insights into the current and future state of commerce, this report uses information from a range of sources, including delivery data from the Australia Post Group.

Executive summary from Australia Post’s report

In 2023, the retail industry experienced a period of slower growth due to challenging economic conditions. But the convenience and ease of online shopping continued to attract consumers, with 9.5 million households making an online purchase in 2023.

Shoppers chose to make more frequent but smaller purchases leading to the emergence of the Strategic Shopper—a value driven consumer who is selective with what, where and how they spend their money. It’s important for retailers to understand these traits when building a successful strategy, which is why we explore the shopping habits of today’s generations in this year’s report.

It was a tale of two cohorts in 2023. While Baby Boomers enjoyed financial freedom, spending nearly $1 billion more than they did last year, the younger generations cut back on spending in light of financial pressures. These pressures were felt by many, including retailers. To tackle rising supply chain costs, 43% of Australian retailers raised their free shipping thresholds in 20231 with some implementing return fees—a bold move to shift the cost of returns to the consumer.

Final sale items gained traction too, with 82% of shoppers unaffected by a ‘no returns’ policy. But with so many unreturned items comes the rise of ‘recommerce’, as more retailers launch preloved marketplaces to encourage the resale of secondhand or unwanted wares. Perfect timing, as consumers embrace sustainable and affordable alternatives to new merchandise.

On the topic of sustainability, retailers continued to take steps to minimise their environmental impact—and customers are noticing with 62% of shoppers willing to pay extra for products that align with their values. But transparency is key, as we investigate in this report.

And then, there’s the ever-evolving world of AI—revolutionising the way retailers collect, analyse and use customer data. As the economy is expected to improve and more people are projected to shop online, retailers can anticipate relief by late 2024 and beyond. We hope this report helps to inspire your upcoming strategy.

 

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Paul Dillon https://www.regionalrising.com.au
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