Australians have dramatically increased their online shopping, with a significant boost seen during the end-of-financial-year sales, as highlighted in Australia Post’s latest Quarterly eCommerce Report. The Commonwealth Bank reported that online spending reached $19.2 billion in the last quarter alone, marking a substantial 15 per cent increase compared to previous periods. Approximately 7.9 million households opted for online shopping during this time.
Consumer confidence appears to be on the rise, spurred on by decreasing inflation which led the Reserve Bank to cut interest rates twice earlier in the year—dropping the official cash rate to 3.85 per cent. According to Australia Post’s General Manager, Chelsea O’Reilly, this positive shift is fostering more engagement in online retail.
Shoppers are now exhibiting changing behaviours, with a marked expectation for quicker service, convenience, and overall value. O’Reilly noted that retailers prioritising the customer experience—through efficient deliveries and flexible shopping options—are positioned to succeed in this increasingly competitive market.
During the quarter, department store sales surged by 28 per cent, driven by customers eager to make the most of discounts. Interestingly, Australians are opting for smaller and more frequent purchases, with the average shopping basket size decreasing to $96, which is a 1.6 per cent decline from the previous year.
Generational spending varied significantly, with Millennials leading the way by spending $6.9 billion, followed by Gen X at $5.3 billion and Gen Z at $3.4 billion. Notably, Gen Z showed the most impressive growth, with a 16 per cent increase in online spending over the last year.
Regional differences were also evident, with Queensland emerging as the top state for online shoppers. Notable cities such as Toowoomba, Mackay, and Bundaberg topped the list, closely followed by Point Cook in Victoria and Mandurah in Western Australia.
The trends emerging from this report offer a clear snapshot of the evolving landscape of Australian online shopping, with changing consumer expectations and behaviours shaping the future of retail in the country.